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Whether you're a trader, builder, investor, or analyst, this newsletter is your go-to source for cutting through the noise and getting straight to the most relevant on-chain insights. Stay ahead of the curve, and let the data do the talking!

Fluid Flows to Polygon

On March 11, Fluid—the unified liquidity and lending protocol—expanded to Polygon (PoS). Initially launched on Ethereum in early 2024, Fluid quickly surged past $550M in TVL. Now live on Polygon, it has already amassed over $23M in TVL and is offering 1.5M POL in lending incentives, focusing on USDC, USDT, ETH, wstETH, and POL markets. After overtaking Curve in DEX trading volume earlier this year, Fluid is now going after established lending protocols like Aave.

Solana’s SIMD-0228 Falls Short

SIMD-0228, which proposed shifting Solana’s emissions from a fixed model to a market-driven system, has failed. Of 910 validators voting (74% of staked votes), only 58% supported the proposal—falling short of the required two-thirds majority. The proposal could have cut Solana’s 4.6% inflation rate below 1%, increasing SOL scarcity while freeing liquidity for DeFi. However, lower staking yields (from 8% to a projected 1.34%) raised concerns about decentralization, particularly for smaller validators. Notably, larger validators (500K+ votes) were more supportive (60% Yes) than smaller ones (30% Yes), highlighting a divide in incentives across the network.

Hyperliquid’s $1T Triumph Meets $4M Setback

This week, Hyperliquid hit a major milestone, surpassing $1T in cumulative trading volume and generating an impressive $600M in annualized revenue. But the celebration was short-lived. On March 12, a whale's $271M ETH long position at 50x leverage was liquidated, costing the HLP vault $4M, while the trader walked away with $1.8M in profit. The event triggered a $166M+ net outflow, exposing cracks in Hyperliquid’s risk model. While its TVL now stands at $2.26B, down from an ATH of $2.58B, the platform continues to dominate the perps market, capturing a record-breaking 69.4%+ of all perps market volume, up from just 30% six months ago.

Compound Goes Morpho on Polygon

Morpho launched in 2022 as an optimizer on top of Compound. Now, the roles have reversed. On March 13, Compound rolled out its lending vaults on Polygon using Morpho Blue, backed by $3M in COMP and POL incentives. Within a day, users supplied $12M, with $214K+ as collateral and $51K+ borrowed. The move could help Compound generate good revenue over the next few years. However, Morpho is both a partner and a competitor, and with Aave’s intended departure from Polygon, it now has a clearer path to becoming Polygon’s leading lending protocol. Whether this deal reinvigorates Compound or accelerates its decline remains to be seen.

BUIDL Breaks $1B TVL Barrier

On March 13, BlackRock’s BUIDL, a tokenized U.S. Treasury fund, surpassed $1B in TVL, solidifying its dominance in real-world asset (RWA) tokenization. Launched with Securitize in March 2024, the fund’s growth has been driven by institutional inflows, with Ethena tapping it for yield strategies—its stablecoin USDtb is backed ~90% by BUIDL. Currently, 82% of BUIDL’s TVL is on Ethereum, followed by Avalanche and Aptos (5.3% each), then Polygon, Optimism, and Arbitrum. While retail traders chase leverage, institutions are increasingly allocating to regulated, on-chain RWAs.

Dune Digest is all about cutting through the noise and surfacing the most relevant on-chain trends. If you have insights, dashboards, or data-driven stories that belong in the Digest, we’d love to hear from you.

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The data must flow.

Dune Team