Giga Time! - Newsletter Edition 95

In this week’s edition:

1. Editorial: Stable vibes, catch up on the launch of gigaDOT, and do you remember Yieldbay?
2. Top Story Giga Launch!: We uncover the eagerly anticipated launch of gigaDOT.
3. Featured Roundup: News from our Finders Program between April 10th and April 16th, plus a quick DOT derivative DeFi wrap-up.
4. Extras: Credits and anything else.

Editorial

What is up, my friends!

After some pause on tariffs, the falling markets seemed to have stabilized, though uncertainty is still in the air. Amidst the panic, you may have missed the varying news of ripple effects from an acquisition and IPO talks that are either stable, central, or galactic.

With conditions somewhat stable, you’d think you could zen out and relax DAO. Well, OMg and sorry to those who’ve been affected by the luna-esque dump. Although there are those who may hold onto the mantra of remaining hopeful, some of the optics don’t look good. Just to be clear, the protocol in question was never built on Polkadot.

While CT is full of furry moments, Giga time has finally arrived. As such, this week’s top story offers some insight into the eagerly anticipated launch of gigaDOT. With all the fanfare behind us, it might be a good time to talk some DeFi.

Those of you who’ve been around might remember the weekly dose of DeFi wrap-ups by Yieldbay. We’d like to follow the Sylvia Path and pay homage with a featured roundup of news and yield updates. Hopefully, Batman and Nightwing approve, or better yet, team up again as TVL is set to rise when DOT Hub arrives.

In the meantime, why not take the opportunity to join in and earn some DOT to make it giga? Follow in the footsteps of other awesome folks who like to wag!

Dodow, Chief Editor

Top Story of the Week - Giga Launch!

Written by yay.oi

What’s flexin’, chads? Forget furry logos, the real degenerate behavior is going down in the Hydration gymnasium. Chug that protein shake and get ready for some serious gains, because gigaDOT (GDOT) has arrived.

The story of GDOT begins in the not-so-distant past, around last Thanks-wagging. Touted as the beginning of the DeFi Renaissance, the Hydration money market launched in November 2024.

While the launch went off without a hitch, the money market didn’t really begin to heat up until the addition of Bifrost’s vDOT liquid staking token in January. This saw a surge of interest in vDOT lending, thanks to the Bifrost founder-approved loop strategy.

Known as interest rate arbitragein professional circles, it involves providing the yield bearing (~11%) vDOT as collateral to borrow DOT at a much lower interest rate. The borrowed tokens can then be swapped or minted into vDOT again, and the process can be repeated.

Each loop results in a slight increase to the liquidation risk, yet this did not deter the masses. The loop strategy became wildly popular, with vDOT hitting the 2.2M supply cap in just 15 hours.

Some were left questioning why Ben made the cap so low, but time proved that raising the cap was a very short-term fix. Little did they know that the remedy was already brewing.

At a Hydration AMA in February, Jakub Gregus explained that due to insufficient liquidity, continuing to raise the vDOT supply cap was not an option. But thanks to the development of a new drifting-peg mechanism, a solution was on the horizon.

Drifting-pegs allow for the tracking of the vDOT price in relation to DOT. As a result, it would be possible to create a highly capital-efficient stablepool between the two assets with very concentrated liquidity and no impermanent loss.

This stablepool is what formed the basis of what finally became GDOT, which is made up of vDOT and aDOT, a yield-bearing token acquired by lending DOT to the money market. Thus, from the onset, GDOT combines the yield from these two sources.

The yields don’t end there, GDOT also collects trading fees and targeted incentives from the Polkadot treasury. For the launch, Hydration prepared and boosted three months’ worth of vDOT incentives from the treasury funded Polkadot Hydration campaign.

Kicking off on Wednesday morning, a slight problem with the runtime left some wallet users waiting until later in the day to fill their bags. While that gave some users a head start on the looping game, there was plenty of GDOT to go around.

Acquiring GDOT is as simple as any other token swap on Hydration, with all of the complexity abstracted away. However, unlike most other assets, the GDOT stablepool actually belongs to the Hydration money market Supply and Borrow AMM.

This means that GDOT is automatically supplied to the money market, and can be borrowed against immediately. While this does not completely abstract the looping process, it does remove one step.

A typical GDOT loop involves borrowing DOT against GDOT collateral and then swapping it for more GDOT. As with vDOT looping, each loop increases the possibility of being liquidated, so caution is advised.

As an example, I went full degen mode and looped six times. With a GDOT APY of 12.4%, the net APY after looping was 29.57%, and the health factor of my position was in the orange zone at 1.13. Liquidation occurs if a health factor falls below 1.0.

With all of the action going on with GDOT experimentation and arbitrage on Wednesday, a rare window of availability for vDOT supply briefly opened up in the money market. While already up to my eyeballs in DOT debt, I couldn’t pass up the chance to compare vDOT looping.

Six loops of vDOT netted a 37.08% APY and a health factor of 1.19. While a clear winner, looping vDOT isn’t a sustainable option without a liquidity solution. Furthermore, if GDOT succeeds in providing deep liquidity to DOT and its derivatives, the Polkadot DAO may look to load up on incentives.

Hydration has so much more brewing for the rest of the year. Cross-chain diversification of the DEX continues, and pieces are falling into place for a potential gigaETH. Before that, we’re likely to see the launch of HOLLAR, an overcollateralized decentralized stablecoin forked from AAVE’s GHO. This will fulfil the final piece of the Hydration DeFi holy trinity: swaps, lending, and HOLLAR.

As Hydration makes waves for vDOT, potentially adding tens of millions to its TVL, Bifrost is riding its own towards vBNC. Part three of the Liquid Wave campaign is coming soon. This means the imminent launch of bbBNC and Bifrost Tokenomics 2.0.

The “bb” in bbBNC stands for buyback and burn. The mechanisms of bbBNC will contribute to the deflation of BNC and incentivize the long-term locking of vBNC. This will be achieved by diverting 10% of protocol revenue (which includes contributions from the vDOT in GDOT) to a burn-mechanism, and the remaining 90% going to bbBNC holders.

After numerous delays, it looks like Stellaswap users may soon have some new revenue-sharing opportunities as well. Similar to bbBNC, users will be able to mint veSTELLA by locking STELLA tokens.

Holders of veSTELLA will receive 83.5% of DEX trading fees and 10% of liquid-staking derivatives revenue. In addition, they will be given governance powers to decide the distribution of LP incentives in weekly votes.

Taking a different approach, Acala, the Polkadot DeFi OG, is encouraging its community to vote in a monthly contest to reward projects that accelerate the growth of the Acala EVM+ ecosystem. That said, they’re also doing their part for the ecosystem with some boosted liquid-staking and LP incentives.

So, as the spring training season kicks off, expect a whole lot of drops from our Polkadot DeFi heavyweights. And let’s not forget our rookies too, who are just about ready to step into the ring.

Knowing that summer is a special season for DeFi, count on our builders to up the tempo before the final whistle. A summer Pudgy Party may offer some icy refreshment, but we’re going to need total hydration… and no liquidation! So maybe just one more loop. After all, we don’t want to get rekt.

Featured Roundup - Wag Roundup (April 10th to April 16th)

Written by Dodow

Yieldbay

As mentioned in the editorial section of this week’s WagMedia newsletter, those of you who’ve been around might remember the weekly dose of DeFi wrap-ups by Yieldbay. With liquidity and TVL ramping up, we are set for Polkadot’s DeFi ecosystem to grow, especially with what is being targeted with Polkadot Hub.

Paying homage to what was arguably one of the most compelling reads for DOT DeFi degens, we’ll follow the Sylvia Path with some updates on yields across the Polkadot ecosystem. Given the giga launch of GDOT on Hydration, we’ll primarily focus on DOT derivatives, which include LSTs.

Before we begin, here are some wise words taken from The Bay Journal:

This content is for informational purposes only, and you should not make decisions based solely on it. This is not investment advice. Please exercise extreme caution if you intend to participate in any listed opportunity. The APR of yield farms changes rapidly. The numbers indicated may not be representative for long.

• All eyes are on gigaDOT (GDOT) as it finally launches on Hydration.

You can simply buy GDOT and earn yield, and for more advanced users, there’s the option to manage risk for more yield through looping. Do watch out for the cap limits, which are widely expected to increase through Hydration governance. Also, check out Bifrost’s thread on related opportunities, including vDOT lending, arbitrage, and looping.

GDOT on Hydration ~11.9%

vDOT supply on Hydration ~11.74%

• Bifrost’s vDOT is integral to being giga!

Here’s a reminder of other vDOT yielding opportunities.

Mint vDOT on Bifrost or Omni LS ~11.06%

Loopstake on Bifrost ~5.29%

vDOT/DOT LP on Bifrost ~5.76%

vDOT/USDT LP on Bifrost ~18.43%

Single sided vDOT LP on Bifrost ~0.35%

Omnipool vDOT farm on Hydration ~2.5%

Eden vDOT on Zenlink ~16.6% (implied APY)

DOT/vDOT LP on StellaSwap ~ 23.11%

• There’s always Acala to get your hands on some DOT LSTs.

Currently, they are offering some boosted staking opportunities, which promotes their EVM+.

LDOT Boosted Liquid Staking on Acala Euphrates ~14.55%

tDOT Boosted Liquid Staking on Acala Euphrates ~15.72%

DOT/LDOT LP on StellaSwap ~ 16.65%

Mint LDOT on Acala ~12.52%

• StellaSwap also offers LP opportunities for vDOT and LDOT (listed above), catering to users more accustomed to EVM.

Toward the end of 2024, they also revived stDOT on Moonbeam.

DOT/stDOT LP on StellaSwap ~ 8.18%

Stake DOT for stDOT on StellaSwap ~11.4%

If yields aren’t your thing, here’s this week’s news, found by the community. Curated by the community. Backed by OpenGov.

DOT Ecosystem News & Events

• Officially signed off by Gavin Wood, PBA is partnering with HSLU to integrate both technical and non-technical Polkadot learning programs. This effort is part of a broader initiative to expand cutting-edge blockchain knowledge into higher education.
• Polkadot Africa announces its collaboration with Web3Ladies in an effort to enhance female participation within the Polkadot ecosystem.
• You can now purchase Polimec's PLMC token with fiat via Banxa, using a card or bank transfer, directly in Nova Wallet.
• Upon feedback from the first release of rewards for Polkadot yappers, the Polkadot Marketing Bounty will adjust to a fairer spread of awards to entice the best mindshare.
• Get an Easy A at Harvard or London with your Polkadot projects, as EasyA hosts in-person hackathons this month with a prize pool of $40K.
• Anyone Network has integrated Peaq IDs, thus hitting the first milestone of the Peaq Grant Program.
• AXI has joined the Peaq ecosystem to fuel their mobility DePIN for EV fleets, which is already live in several African cities.
• Integritee Network has integrated EURC into its Incognitee dApp, allowing you to now transact it privately.
• SubWallet’s latest update adds a plethora of support for new tokens and networks. Tokens includes DOT on Polimec, EWT and KSM on Hydration, LOVA on Acala, Snowbridge MYTH on Asset Hub, and networks include Peaq EVM.
• You can win $100 through the new Polkadot challenges on the EasyA app.
• Xcavate is now producing blocks as it launches its mainnet live on Polkadot.
• At long last, gigaDOT (GDOT) is live on Hydration. It’s simple, buy and hold for yield. Or if you’re a degen, you could try some looping.
• Aventus releases its Company Report. Key items uncovered include the Aventus 2.0 Upgrade, appchain launches (featuring Galactic Markets and VoucherLedger), real-world enterprise adoption, improved tokenomics, and more.
• Moonbeam covers it all in their monthly report, The Satellite: April Edition. Highlights include demoing smart contracts using AI agents, Ramp integration, the eagerly anticipated Evrloot S2 campaign, and more.
• You can now use your Acurast Lite mobile wallet to harvest MIST! Currently available on Android, with IOS coming soon.
• In a heartfelt message, the InvArch founder reveals the recent struggles. As such, protocol development is expected to slow down for the foreseeable future.
• Check out the useful guide and get yourself ready for Evrloot Season 2, where there’s a new Rift Expedition, free players, and the chance to earn Marks for an airdrop.
• Evrloot becomes the official face of indie gaming on Polkadot through a strategic partnership with DOT Play.
• Dropping on KodaDot is a new generative art collection by Andre Oliveira Cebola, called System Upload.
• With the imminent launch of the S2 campaign, Evrloot illustrates their current position on the roadmap.
• Hydration’s referendum 56 was to approve the giga runtime upgrade, which is required for the much-anticipated launch of gigaDOT.
• Did you vote for Hydration’s launch of gigaDOT?
• Make sure to vote on raising Hydration’s DOT supply and borrowing limits to make room for the anticipated demand of gigaDOT.
• Perhaps DAO is the time to start paying attention to Polkadot OpenGov, as tokens have been distributed to DV Cohort 4.
• Polkadot OpenGov Referendum 1523, sees Cyberpunk Labs, the team behind Robonomics, requesting 618K USDT for one year of funding.The plan is to develop a Humanoid Robot SDK, advance robotics research with AI testing, engage developers, contribute open-source documentation, create demos, support onboarding, and more. This mission aims to establish a framework that enables secure, autonomous, and trustless machine interactions, leveraging the Polkadot cloud to foster resilient advancement of robotics.
• The Astar Foundation proposes the formation of the Astar Finance Committee. If approved, the DAO fund allocation will be transferred to the new body to ensure clear ownership and a mandate to support strategic, long-term ecosystem growth.
• Hydration is busy with the refs! To speed up Referendum 59 regarding supply and borrow limits, Whitelisted Caller Referendum 62 was swiftly passed.
• Polkadot OpenGovReferendum 1527 sees Polkadot ERI requesting 57.72K DOT for 12 months of continued funding to support its Chinese-language research and content production.
• Polkadot Africa’s mission to push forward a resilient Web3 continues at the University of Benin on April 12th, followed by the University of Nigeria on April 19th.
• Catch the Polkadot Ambassador Fellowship livestream with progress updates from the event held on April 11th.
• Entropretty’s algorithmic tattoo design competition continues in Saarbrücken, Germany, from April 18th to 21st.
• On April 15th, Polkadot’s community Telegram account hosted the first session of a new AMA series on DV with Permanence DAO.
• Mandala Chain provided an update on April 16th.
• Check out Polkadot Africa’s session held on April 17th for tips on participating in the Polkadot-sponsored Encode Hackathons.
• The Polkadot Africa-hosted INK workshop was rescheduled from April 15th to April 16th.
• Peaq welcomed EV mobility DePIN, AXI, on April 16th.
• Get ready for Token2049 Dubai, where a Polkadot side event will take place on April 29th.
• On April 16th, Acala was buzzing!

Extras

• Awesome cover art created by SKULLZ.
• For all you budding creators out there, don't hesitate any longer – join us now! There are plenty of rewards awaiting your creativity.