MegaETH: the complete guide to understanding and farming potential ecosystem airdrops

Introduction and context about MegaETH

What is MegaETH?

MegaETH is a layer 2 (L2) solution for Ethereum, designed to tackle the scalability challenges of the blockchain. Inspired by Vitalik Buterin’s “Endgame” article published in 2021, MegaETH embraces the concept of a “real-time blockchain,” theoretically enabling a user experience similar to that of Web2 systems.

From a technical perspective, MegaETH features a modular architecture and specialization of node roles to achieve faster execution. It relies on EigenDA for its data availability layer and uses Ethereum as its settlement layer, thus benefiting from Ethereum’s decentralization, security, and censorship resistance.

Currently, the MegaETH testnet is showcasing impressive performance: 20,000 transactions per second (TPS), a block time of 10 milliseconds, and finality in 1.7 seconds. Further improvements are expected for the mainnet, including a reduction of block time to 1 millisecond thanks to the integration of a ZK-Rollup.

These figures position MegaETH far ahead of other existing L2s, with a testnet block time 200x faster than Arbitrum and 25x faster than Optimism. Additionally, its very high gas limit (20 times higher than the average of other EVM blockchains) and the choice of a centralized sequencer promise a smooth user experience.

The game Crossy Fuffle, available on the testnet, already allows users to experience this Web2-like fluidity firsthand.

→ Read our detailed analysis of MegaETH here:

A Zoom on MegaETH, the blockchain that raised $9.2 million in seconds

A look back at the latest fund-raising by Echo, the early stage investment platform launched by Cobie. This time, layer 2 megaETH raised $9.2 million in a matter of seconds. Let's take a look at this phenomenon.

Fundraising

In total, MegaLabs has raised $57 million for the development of MegaETH. An initial private fundraising round of $20 million was carried out, with participation from Dragonfly Capital and Ethereum co-founder Vitalik Buterin.

This round was accompanied by a $10 million community funding round (completed in just a few minutes) conducted on the Echo platform, a collaborative tool allowing accredited retail investors to access the same terms as institutional investors.

Finally, MegaETH raised an additional 10,000 ETH — equivalent to $27 million at the time — via the sale of a collection of NFTs called “The Fluffle.” These NFTs will allow holders to share 5% of the allocation of MegaETH’s future token.

A Community-Driven Strategy

MegaETH’s ecosystem growth strategy is quite unique compared to other recently launched blockchains. Instead of relying on incentives to attract developers and airdrop farmers, MegaETH has opted for organic growth centered around project incubation.

The “Mega Mafia” program aims to attract the best developers to build the applications the ecosystem will need later. As BreadGuy (Head of Ecosystem at MegaETH) explained to us, Mega Mafia is a true incubator and ecosystem accelerator, with 15 projects currently under development.

MegaETH enjoys a particularly active French community, with a strong presence of French developers on teams and in major projects such as the NFT collection Bad Bunnz and Kingdomly, a platform for launching NFT collections on various blockchains, now available on MegaETH.

→ Read our Analyst Notes interview with BreadGuy on MegaETH:

MegaETH, Ethereum's most promising layer 2? – Analyst Notes BreadGuy

In this second edition of OAK Research's Analyst Notes, we take a look at an interview with “0xBreadguy”, a key member of the MegaETH team, with French media outlet Decrypted.

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What do we know about potential airdrops in the MegaETH ecosystem?

Which applications will offer an airdrop?

At the time of writing this analysis, there is no clear information confirming the existence of an airdrop for MegaETH itself or for applications built on the blockchain. Unlike the explicit strategy adopted by various HyperEVM applications that replicate the points system introduced by Hyperliquid, MegaETH applications follow MegaLabs’ approach of not communicating about this topic.

Logically, it can be speculated that MegaETH and the projects built on it do not want to repeat the mistakes of previous L2s, which encouraged developers and users to join the network solely to chase an airdrop before quickly abandoning the ecosystem.

In line with the explanations above regarding Mega Mafia, it seems that MegaETH aims instead to create a truly organic ecosystem growth, driven by the quality of what is built there.

However, does this mean there will be no airdrops at all? Probably not. We can still speculate that the most patient and engaged participants may receive rewards from various projects.

Getting started with farming

Before you begin, the first thing to do is to add the MegaETH Testnet network to your wallet (you can use a burner wallet). To do this, you can visit testnet.megaeth.com and add the testnet network with one click, or manually configure it using the details below:

• Network name: Mega Testnet
• RPC URL: carrot.megaeth.com/rpc
• Chain ID: 6342
• Currency symbol: MegaETH
• Block explorer URL: megaexplorer.xyz

Next, you’ll need to use the faucet to get MegaETH Testnet tokens in this wallet. Visit testnet.megaeth.com, scroll to “faucet,” enter your wallet address, and click “get testnet ETH.” You can receive a maximum of 0.005 testnet ETH every 24 hours.

There is also FluffleTools, a tool created by 0x_ultra and supported by the official MegaETH team, which allows you to navigate through different applications and NFT collections launched in the ecosystem. We highly recommend using it to simplify your research and due diligence.

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CLOBs: A new eldorado for airdrop farmers?

The concept of CLOBs (Central Limit Order Books) is making a strong comeback in the cryptocurrency world. Historically, traditional financial markets (TradFi) have always used CLOBs due to their high liquidity and low slippage, enabled by real-time order matching.

However, blockchain infrastructure was not fast enough to support the CLOB model, which led to the rise of AMMs (Automated Market Makers) like Uniswap. AMMs use fixed formulas (e.g., y = k ∗ x) to determine an asset’s price relative to the liquidity in a pool.

Nevertheless, the recent success of Hyperliquid proved it was possible to build a decentralized exchange based on the CLOB model, and that it could even compete with centralized players previously considered unbeatable in the perpetual contracts space.

Logically, the emergence of new highly scalable blockchains like MegaETH could allow CLOBs to become widespread beyond derivative markets. MegaETH’s speed, often compared to Web2 infrastructure, paves the way for new CLOB-based applications, which we will explore in the rest of this analysis.

→ Check out our full guide on the “CLOB Wars,” the next big trend in DeFi:

CLOB Wars: A New Dawn for DEX Trading

This is probably the trend that will drive the crypto market in the coming weeks: CLOBs. In the wake of Hyperliquid's success, many decentralized exchanges (DEX) are following suit and adopting the CLOB model. Thus begins the “CLOBs Wars”.

Avon

Avon is a decentralized lending protocol based on a CLOB mechanism. This mechanism is not new; it was already used by Loopscale, Morpho Blue, and Morpho Optimizers (the initial version of the protocol).

Concretely, the idea is that lenders' and borrowers' positions are placed in an order book and matched by the protocol. Unlike traditional lending markets where users are constrained by predefined pool parameters, Avon introduces a dynamic system:

• Lenders can choose pools where funds are strategically deployed by "curators" to optimize rates and capital efficiency.
• Borrowers can express specific borrowing terms, such as amount, collateral, interest rate, and loan-to-value ratio (LTV). A lender (via a pool’s curator) can then accept this offer, creating an instant match and opening a position.

Moreover, Avon redistributes liquidity across different pools, reducing utilization levels and costs for end users, thus enabling more efficient capital deployment and overcoming the liquidity fragmentation issues often seen in current money markets.

The key point to remember is that you can regularly obtain codes to access the testnet. These codes are available on various channels, especially on MegaETH Discords and via the Avon Telegram channel.

Some farming tips:

• Test the Avon app on the testnet. You can check when the app will be available in the Mega Mafia apps tab;
• Follow Avon’s Twitter account, join their Telegram channel, and participate in their Discord when it opens.

WCM

WCM (formerly Teko Finance) is one of the first fully on-chain exchanges to unify spot trading, perpetual futures trading, and lending, all with cross-margin support. In other words, the same collateral can be used simultaneously across various products and trading activities.

The platform is built on MegaETH and also uses CLOBs instead of classic AMMs. This approach allows users to:

• Take out loans to increase their trading volume and exposure (leveraged strategies).
• Use a single shared balance for a variety of products and trades (cross-margining).
• Trade at high frequency.

Some farming tips:

• Test the WCM app on the testnet. Go to wcm.inc or the Mega Mafia apps tab.
• Follow their Twitter account and join their Discord when it opens.

We provide this research freely to help the community better understand MegaETH’s opportunities. If you'd like to support our work, you can use our referral link (code 258AFDBY6) to sign up on WCM. It costs you nothing but helps us continue producing high-quality content.

GTE

GTE is the most well-known decentralized trading platform within the MegaETH ecosystem. It operates on a CLOB mechanism and also integrates an AMM and a launchpad to issue tokens, similar to Pump Fun.

The platform recently raised 15 million dollars from hedge fund Paradigm, bringing the total funds raised to $26 million. Enzo_gte, founder of GTE, recently expressed admiration for Hyperliquid’s success, especially for its loyal "whales," seeing it as a valuable lesson for GTE.

Community involvement is essential in the MegaETH ecosystem. It is highly recommended to get involved now to support the future development of the ecosystem. This fundraising is crucial as it indicates a trend toward the emergence of larger, more attractive applications that will become key revenue generators and drivers for MegaETH.

To try to become eligible for a future airdrop, we will interact with the platform's functionalities. Note that ideally, these actions should be repeated at least once a week (and if possible, once a day).

• Visit: https://testnet.gte.xyz
• In the left menu, click “Swap.” Swap ETH for USD, for example;
• Click “Trade,” enter the amount of tokens you want to swap (e.g., MEGA/ETH pair), click 5%, and then "Buy." For now, only the AMM mode is available (CLOB and perps coming soon);
• Go to “Earn” and deposit your MEGA and USD acquired earlier into farming pools.

Note that since MegaETH is on testnet, these operations cost nothing for users. Another option is to launch your own token through MegaETH’s launchpad, called GTE Dash. To do this:

• Click "Dash," the third icon in the left menu;
• Click "Launch a token" at the top;
• Enter your token details;
• Click "Deploy" and confirm the transaction;
• Make some buys of your own token;
• Buy other tokens as well.

Euphoria

Euphoria is a rather revolutionary mobile trading app designed to make derivative trading accessible and fun. Its main innovation lies in the concept of "tap trading," allowing you to place orders with a single tap directly on the chart.

The Euphoria team chose MegaETH for its speed and minimal transaction fees. These features are crucial to ensure a smooth user experience, especially for small trades and the efficiency of "tap trading," where every millisecond counts. The low costs also allow users to multiply transactions without worrying about excessive fees.

The Euphoria app operates using an order book system (CLOB), where each square on the chart represents an individual order book. According to Casey Craig in an interview during a MegaETH live session hosted by TheSmolTalk, the priority is to hide technical complexity and offer an intuitive and playful interface so that trading feels like a game.

Euphoria also plans features for professional traders, such as API trading. The platform aims to strongly develop the social aspect of trading. The team plans to integrate features like a leaderboard, heatmaps showing other traders’ interests, and the ability to follow other traders’ trades.

For now, no token issuance is planned. The priority is Euphoria’s development and adoption. In the interview, Casey Craig explains that the project will set up a points program, a referral system, and competitions to stimulate engagement. A token may be considered later if the app meets its success goals and a concrete utility can be defined.

Some farming tips:

• Test the Euphoria app on the testnet (currently on a waitlist). You can check when it will be available in the Mega Mafia apps tab;
• Join their Discord, participate in discussions, and try to get an OG or other role that might make you eligible for a future airdrop;
• Interact with the team’s Twitter accounts and the project’s official page.

We provide this research freely to help the community better understand MegaETH’s opportunities. If you'd like to support our work, you can use our referral link (code 7X1JNKFG0) to sign up on Euphoria. It costs you nothing, but it helps us continue producing high-quality content.

Valhalla

Valhalla is a notable competitor in the CLOB market, aiming to provide an alternative to existing platforms like GTE or Euphoria. Once again, it relies on a centralized order book to ensure platform operation.

Valhalla focuses on improving user experience and technical performance. Among its latest developments are significant UX improvements, especially for token swapping, the addition of animations, and better smoothness. Technically, Valhalla is working on reducing latency, optimizing connectivity, and fixing various bugs to offer a more stable and reliable platform.

For those who want to explore the platform, Valhalla is available on the testnet. The upcoming launch of new features and the mention of "points soon" suggest that the project is actively developing and may offer an airdrop. This also provides an opportunity to test the application and get familiar with its features before the mainnet launch.

Some farming tips:

• Test the Valhalla.exchange app on the testnet (open a long position on BTC, for example);
• Join their Discord and follow their X page.

We provide this research freely to help the community better understand MegaETH’s opportunities. If you'd like to support our work, you can use our referral link (code e04d293d) to sign up on Valhalla. It costs you nothing, but it helps us continue producing high-quality content.

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Other innovative projects to farm on MegaETH

CapMoney

We continue our exploration of decentralized applications on MegaETH with CapMoney, whose app was recently deployed on the Ethereum mainnet. Currently, user deposits are not yet open because internal tests are still ongoing, but this feature should be available very soon.

For those discovering CapMoney, their goal is to generate yield on your stablecoins. For now, here are two key points to remember:

• The initial launch on Ethereum mainnet aims to accelerate app deployment, incentives, and activity development.
• Integration with MegaETH is planned very soon, providing new usage options in the near future.

It’s important to note that CapMoney was the first to integrate a redistribution mechanism for restaking, relying notably on EigenLayer.

Here’s how this system works: if the actors responsible for security and proper use of funds to generate yield do not meet their commitments, the funds won’t simply be "slashed" and burned. Instead, they will be slashed and redistributed.

In other words, if the institutions managing your stablecoins through CapMoney fail to repay the funds, the deposits from the stakers who trusted them will be redistributed to the users affected by those defaults.

Some farming tips:

• Test the CapMoney app on the testnet (currently, only the "mint testnet token" function is available);
• Join their Discord and interact on the official project page.

Noise

Noise is a trading application that allows you to speculate on the "buzz" or popularity of an ecosystem or a digital asset, regardless of its price. Unlike classic trading based on an asset’s value, Noise opens the door to speculation on mindshare and interest generated by an asset. For example, even if a token like HYPE’s price goes down, its popularity could still be speculated on through Noise.

This concept could be interesting because of its disruptive potential and ability to leverage MegaETH’s speed. However, important questions remain regarding its actual operation, especially around the liquidity of these “popularity markets” and potential insider trading issues tied to privileged information.

To better understand Noise, we recommend doing your own research on how it works and testing the app on MegaETH’s testnet.

In summary, Noise represents a promising paradigm shift in trading, focused on perception rather than price, but it still requires clarification around its mechanics and risk management.

Some farming tips:

• Test the Noise app on the testnet (you need an invitation code);
• Follow their Twitter account and join their Discord when it opens.

But also:

• Mega Mafia Apps: these applications leverage MegaETH’s high performance and gas limit. They’re incubated and backed by the MegaETH foundation itself;
• CrossyFluffle: this mini-game demonstrates the smooth performance on MegaETH, surpassing blockchains like Base or Monad;
• Showdown: developed by pro players from top online card games (like Magic and Hearthstone) with no prior Web3 experience, this project highlights the accessibility of the MegaETH ecosystem.

We will continue to follow the progress of the projects presented above, dive deeper into those still at an early stage, and explore new ones as they emerge in the ecosystem.

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NFTs and culture: one of MegaETH’s pillars

The current success of the MegaETH ecosystem largely relies on its unique community approach through NFT culture. This strategy, exemplified by the success of the Fluffles (an SBT that allows you to receive a % of the MegaETH airdrop allocation), has helped MegaETH stand out and capture attention far beyond purely technical or financial aspects.

Bad Bunnz

Created by Pasheur and Beacon, Bad Bunnz is a collection already launched on Ethereum (awaiting MegaETH’s mainnet launch), notable for its unique graphic style and ultra-active community.

With a current floor price of about 0.5 ETH (15x since mint), this collection could be an interesting option to gain exposure to the ecosystem, especially if you prefer to avoid the "grind" to obtain a Fluffle or to secure whitelists for future NFT collections on MegaETH.

Owning one or more Bad Bunnz NFTs grants you access to whitelists for future NFT collections to be launched on MegaETH. Given their success, seriousness, and support from the foundation, Bad Bunnz carefully vets and offers quality projects to its holders.

The success of this collection’s launch was a major catalyst for the current excitement around NFTs on MegaETH. The collection’s art and highly engaged community significantly contributed to the ecosystem’s visibility and appeal. Other promising projects, such as Megalio, also benefit from this positive momentum.

Megalio

Launched by Elian, Megalio is a derivative NFT collection inspired by Milady, a famous collection launched in 2023 on Ethereum. Given the performance of Hypio on Hyperliquid (also a Milady derivative), some are speculating that Megalio might follow a similar trajectory.

With a current floor price of around 0.1 ETH (4x since mint), this collection could also be a good way to get exposure to the MegaETH ecosystem.

Meganacci

Created by Fimmonaci, Meganacci is another interesting PFP (Profile Picture) collection. The art and perks seem quite varied, and the collection is already generating significant hype.

This collection will also be a "free mint." To obtain a whitelist spot, you’ll need to participate in challenges, like the one recently launched with FantasyTop, or solve riddles and complete various tasks on the X account.

A good indicator of your eligibility for the whitelist would be being followed by @fimmonaci, the project’s founder.

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Conclusion and farming strategy

MegaETH positions itself as a promising layer 2 for Ethereum, aiming to overcome scalability challenges through impressive technical performance and an approach focused on building an organic ecosystem. Its development strategy, prioritizing project incubation and developer support through programs like "Mega Mafia," sets it apart from other L2s.

Although no airdrop is officially guaranteed by MegaETH or its ecosystem applications, the emphasis on quality, community engagement, and innovation suggests that the most active and patient users could be rewarded (Fluffle NFT holders should receive a portion of the MegaETH airdrop allocation).

MegaETH’s long-term success will depend on its ability to maintain this momentum and translate testnet popularity into sustainable mainnet adoption, especially for NFT projects and dApps.

To maximize your chances of securing an airdrop from MegaETH and its ecosystem dApps, adopt a proactive and diversified approach. The goal is to demonstrate organic and continuous activity on the testnet, interacting with as many features, projects, and NFT collections as possible.