1/ @ExponentFinance is best positioned to dominate Solana yield markets, the fastest-growing vertical in the ecosystem:
- The founding team cares deeply about security, design, and UX.
- PT listings on Kamino, Drift, and Loopscale.
- Expansion to new markets.
Let's dive in 🧵
3/ Exponent PT-SOL assets have been onboarded as collateral on Kamino, Drift, and Loopscale.
The PT-SOL market on Kamino has amassed over $50M in deposits and almost $20M in borrows since launching on May 22, with SOL utilization in this market remaining above 90%.
4/ PT integrations in money markets represent the most compelling avenue for Exponent to expand its market share.
This dynamic has played out on the EVM, where high demand for looping Pendle’s PT-sUSDe on Aave has successfully driven liquidity back to the yield trading platform.
5/ In this regard, Exponent recently flipped RateX in TVL, and is now commanding a 60% market share ($126M vs. $87M).
That said, over 90% of Exponent’s TVL comes from SOL LSTs and LRTs, with the recent growth driven by Fragmetric's fragSOL market.
6/ Exponent's next growth phase will come from yield-bearing stablecoin markets like syrupUSDC and the untapped $1.6B JLP market.
Pendle’s PT-sUSDe utilization on Aave suggests that the demand for looping a fixed-yielding instrument like PT-JLP is likely much higher than looping the underlying asset due to the high volatility in JLP's historical APY.
7/ Subscribe to @blockworksres for access to the full report by @0xcarlosg, which features a forward-looking valuation and highlights the key risks for the protocol.
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