⛓️ Onchain, at scale

Brought to you by:

Hey there, Empire reader!

This week is going to be a little different. Blockworks Editorial is in deep learning mode for the next five days, which means shorter emails.

We’ll be back to scheduled programming in no time! Until then, enjoy the quick read.

💁 DAT’s the way I like it

If you’re waiting for the conversation to shift away from Digital Asset Treasury companies, prepare to wait longer. Same goes for those anticipating a cascade of implosions.

“ You probably end up having an evolution of these DATs, where instead of just putting a one-to-one token in it, DATs basically become this vehicle through which capital ends up getting mobilized in the TradFi world and then deployed onchain at scale,” Yano posited on today’s Empire podcast to Ethena Labs CEO Guy Young.

With that in mind, Yano wondered whether the over-leveraged blowups at the end of 2021 and into 2022 has Young scared of a redux.

In the cases where the carry trade is collateralized one-to-one with the target asset — for example, raising $5 billion to deploy $5 billion — the stablecoin founder doesn’t see cause for concern.

“I think the risk obviously comes if you start to lever up all of the underlying assets and you're, you know, 2x long ETH within the vehicle itself, and then these things start getting liquidated. Obviously that becomes a bit more challenging,” Young said.

“I think the one thing that's good is that they're all much more transparent vehicles, right? Like, we couldn't really see into the balance sheets of all of the entities that blew up last cycle, while here, you actually have disclosure requirements to be showing to the market. So anyone who's reading those documents will be well aware of how much leverage there actually is.”

Full episode on YouTube, Spotify, Apple Podcasts and X.

Brought to you by:

Mantle is the premier onchain gateway for institutions and traditional finance to access real-world assets.

Backed by the world's largest community-owned treasury of over $4B, Mantle provides the institutional-grade infrastructure with scalability, security and credibility needed to confidently bridge RWAs into Web3.

• ICYMI: Robinhood stock (HOOD) will be added to the S&P 500 index later this month, boosting its share price by 8% during this morning’s pre-market trading. Meanwhile, Strategy has been left out despite technically qualifying.

• The German government of Saxony may have left 45,000 BTC ($5 billion) unseized from piracy site Movie2k, per Arkham.

• Sora Ventures has announced plans to buy $1 billion BTC in the next six months, with $200 million in commitments so far.

If SQL and protocol deep-dives are your playground, this is it.

Join Blockworks as a Data Analyst and help us set the standard for protocol analytics. Build dashboards, shape frameworks, and help the industry see past the noise.

Apply now or pass it along to the Dune wizard in your group chat.