Lean Ethereum: the biggest overhaul of Ethereum since The Merge
ETAlpha Récap #24: The Aave situation, MegaETH's TGE, and Derive's buybacks
Published onUpdated on
In this latest edition of the Alpha Recap, we break down the key insights from the past week in the crypto market: major developments, yield and airdrop strategies, key data points, and sharp analysis, all designed to cut through the noise.
The Alpha Recap is designed to highlight the most important developments in the crypto market each week. Every Friday, we deliver a curated overview of the most valuable insights from our Alpha Feed.
Reserved for OAK Premium members, the Alpha Feed brings together high-signal insights, yield and airdrop strategies, key market data, and sharp analysis. In short, it reflects OAK Research’s core mission: delivering filtered content that goes beyond market noise.
Aave, KelpDAO, and LayerZero: State of Play
Unsurprisingly, the week was dominated by the fallout from the hack of KelpDAO and its cross-chain infrastructure powered by LayerZero. As a reminder, nearly $292 million was drained from KelpDAO in the form of rsETH-an attack currently attributed to North Korean state-sponsored actors.
The hackers opted to deposit their loot into Aave to borrow WETH, forcing DeFi's largest lending protocol to freeze several markets. This triggered a wave of widespread panic across the ecosystem, leading to a liquidity crunch and 100% utilization rates for USDC and USDT pools.
The industry is now watching closely for remedial actions from KelpDAO and LayerZero. Meanwhile, an initiative dubbed “DeFi United” emerged yesterday, with several protocols banding together to raise funds and plug KelpDAO’s debt.
We have provided continuous coverage of this developing story via the Alpha Feed and will keep you informed of any further escalations.
→ We published a comprehensive investigative report earlier this week. We recommend reviewing it to fully understand the implications of this historic event.
Derive: Deep Dive into Buyback and Staking Overhaul
We also analyzed the recently passed governance proposal within the Derive protocol. This move aims to redefine its DRV token buyback mechanism and overhaul emission schedules, specifically for stakers.
As part of our coverage, we modeled Derive’s new DRV parameters to assess whether this shift represents a genuine value-capture opportunity or a risk for holders.
The Alpha Feed serves not just as an information stream, but as a strategic tool to identify timely opportunities while steering clear of market traps.
MegaETH: TGE Countdown and Ecosystem Shifts
MegaETH, the high-performance Layer 2, has returned to the spotlight as it nears its TGE (Token Generation Event), scheduled for next week. The project recently hit one of its three core KPIs: the launch of at least 10 applications supported by the "MegaMafia" incubator that have demonstrated significant user traction.
The ecosystem includes Cap (yield-bearing stablecoin), Kumbaya (DEX), Showdown (on-chain Poker), Avon (CLOB lending), Ubitel (eSIM with on-chain rewards), World Markets (Spot, Perps, and Lending), Stomp (Gaming), HitOne (Gamified leverage trading), Nectar AI (On-chain AI companions), Brix (RWA tokenization), and Pump Party.
We have detailed the specifics of the MegaETH TGE, including token distribution and post-launch strategies.
However, note that since our initial Alpha post, Avon has announced it is pivoting away from MegaETH for reasons that remain unclear. This is a significant departure, not only because Avon was a flagship "MegaMafia" project but also because it occupied a central role in the L2’s growth through its dedicated USDm vault.
To access exclusive Alpha insights, as well as our Watchlist, OAK Index, premium reports, and daily recaps, join OAK Premium.
