Solana's Oval Office Opp ($)

Sponsor: Frax — Fraxtal Ecosystem: Where DeFi Meets AI.

1. 🇺🇸 Trump Announces Creation of Crypto Working Group. Trump's latest executive order tasks czar David Sacks with creating a working group to tackle regulation.
2. 💸 Binance's CZ Returns to Rebranded Binance Labs as Investor. The Binance founder is done sitting on the sidelines after his brief prison term.
3. 🚔 Ledger Co-Founder Safe Following Kidnapping. David Balland had been taken from his home in France on Tuesday.

	Crypto $3.60T	↗ 0.6%	↗ 2.3%
	BTC $104,354	↗ 0.5%	↗ 4.5%
	ETH $3,334	↗ 2.9%	↗ 1.1%

Solana was perhaps the biggest beneficiary of President Donald Trump’s recent foray into memecoins, and its Meteora exchange has been at the center of the madness, processing billions of dollars in transactions each day as traders rush to acquire TRUMP.

Meteora received the honor of being the initial source of onchain liquidity for TRUMP tokens, a potent first-mover advantage that allowed it to amass over $750M in new deposits and triple total value-locked overnight!

Today, we dissect this rapidly growing tokenless exchange. 👇

🌠 The Meteora Basics

Meteora is available exclusively on the Solana network, meaning anyone who wishes to use the application must purchase some SOL for gas payments – $5 should be sufficient to cover hundreds of transactions. Once your Solana wallet is loaded with cryptocurrency, you’re ready to interact with Meteora!

Like many other onchain exchanges, Meteora is based around automated market maker (AMM) technology, a special type of smart contract pioneered by Ethereum exchange Uniswap that holds two different cryptocurrencies and enables anyone to permissionlessly swap between the tokens.

What differentiates Meteora from many of its competitors is its “Dynamic Liquidity Market Maker,” or DLMM, which gives users three automated liquidity deployment strategies they can choose between to customize how they provide liquidity.

With the “spot” liquidity distribution strategy, deposited liquidity is spread uniformly across selected prices, meanwhile, the “curve” liquidity strategy concentrates user liquidity heavily around a given price and the “bid-ask” liquidity strategy concentrates liquidity towards price range extremes.

To start earning yield with Meteora’s DLMM, users must first determine the token pair they wish to provide liquidity on before then selecting the pool they want to deposit into. One token pair can have an infinite number of Meteora pools, each of which can be designed with different “bin” sizes (i.e., the price ranges at which liquidity is active) and protocol fees.

After selecting their desired liquidity pool, Meteora users can click “Add Position” to open a liquidity provider management interface, from which they can input how many tokens they want to deposit and easily “shape” their liquidity position.

Meteora’s interface allows users to define the price range they want to concentrate their liquidity within, meanwhile, its liquidity distribution strategies let them shape how liquidity is distributed throughout the range.

 To enhance yields for its depositors, Meteora has developed “Dynamic Vaults,” a solution that continually allocates single token deposits across various Solana lending platforms (primarily Kamino, Marginfi, and Solend) in an attempt to maximize yield while preventing excessive risk.

Combining Meteora’s DLMM with Dynamic Vaults produces the “Dynamic AMM,” a capital-efficient market maker that lends out inactive liquidity (i.e., tokens outside of the in-range price bin that are not being used to facilitate swaps), enabling liquidity providers to boost swap fee yields with additional lending income.

M3M3, the most recently deployed product from the Meteora team, departs from the exchange’s liquidity provider roots and ventures into the memecoin sector. It is a token launchpad that incentivizes memecoin staking by distributing yield from permanently locked liquidity to M3M3 users who stake their memecoins.

Meteora does not currently have a native token, but in late 2023, the exchange promised that 10% of the MET token supply would be allocated to liquidity providers prior to an eventual token launch. Considering the expansion in Meteora’s product line since this time, it is likely that interactions with other products will be included in the eligibility criteria for this distribution.

 🧠 Advanced Moves

Although Meteora attempts to make liquidity provisioning easier through automated liquidity deployment strategies and a user-friendly interface, as with any other AMM, users must actively manage their positions.

While setting wider LP price ranges lessens the need to actively manage a position, it reduces the concentration of supplied liquidity, diminishing the amount of yield that can be earned from end-user swapping activities. Similarly, while using larger bin sizes increases the price range a given bucket of liquidity is active within, it results in less concentrated liquidity and can lead to greater impermanent loss.

Eventual MET airdrop rewards should provide additional yield for liquidity providers, but dollar gains are never guaranteed in crypto; succeeding as a liquidity provider on Meteora requires sound decisions and a basic understanding of automated market maker principles.

Visit Meteora’s free DLMM bootcamp to become a liquidity provider pro in two days!

Market Plays:

• 🌈 Surfing the new Trending Tokens tab on Rainbow
• 🪙 Checking for $ANIME claims eligibility
• 🔃 Trying the new Interface web app for copytrading
• 📲 Downloading Yapster and hunting for an invite code

Hot Reads:

• ✨ Native Rollups - Justin Drake
• 🌐 Ethereum Foundation R&D Teams - nixo.eth
• 📆 Reflections & Forecasts - Hiroki Kotabe, Griša Černe
• 🤖 69 Trends in 2025-Era DAO Design - Kevin Owocki
• ⏩ A New (Digital) Age at the SEC - Scott Walker, Bill Hinman

Farming Opps:

• 🟠 BTC: 37% APR with Aerodrome’s tBTC-cbBTC pool on Base
• 🟠 BTC: 17% APY with Pendle’s liquidBeraBTC PT on Ethereum
• 🔵 ETH: 50% APR with Aerodrome’s weETH-WETH pool on Base
• 🔵 ETH: 14% APY with Pendle’s beraSTONE PT on Ethereum
• 🟢 USD: 31% APY with Pendle’s USR PT on Base
• 🟢 USD: 26% APR with Hop’s DAI vault on Optimism

Airdrop Hunter:

• ♾️ InfinityPools: Provide Liquidity to InfinityPools
• 🥩 Obol: Claim OBOL airdrop
• 🌠 Meteora: Provide Liquidity to Meteora
• 📡 Orbiter Finance: Claim OBT airdrop
• 💫 Jupiter: Claim JUP airdrop

The Fraxtal ecosystem is expanding at lightning speed—this month’s biggest highlight is IQAI.com, the newest Agent Tokenization platform from IQ and Frax. IQ is building autonomous, intelligent, tokenized agents launching on Fraxtal in Q1. Empower on-chain agents with built-in wallets, tokenized ownership, and decentralized governance—all within a fast-growing Fraxtal ecosystem.

Catalyst Overview

The Bankless Analyst Team assigned a bullish rating to ENA on October 18, optimistic that if crypto’s bull market was to progress, rising funding rates could be expected to catalyze explosive expansion in both Ethena’s profitability and assets under management. ENA rallied over 200% in the three months following this rating.

On January 20, the very same day that President Donald Trump was inaugurated, his eldest son announced that the Trump family’s associated World Liberty Financial project had acquired over $110M in crypto assets, which included $4.7M of ENA token purchases.

While the prices of many crypto tokens were trading near all-time highs at the time of this analysis, market froth had cooled considerably since December, causing perpetual swap funding rates (the main source of income for Ethena) to reset towards “neutral” territory. This fall coincided with a 5% reduction in the circulating supply of Ethena’s USDe and has resulted in a dramatic decrease in the yield available on Ethena’s synthetic dollar stablecoins.

Price Impact

The Bankless Analyst Team is downgrading ENA to bearish, citing concern that the resumption of funding rate stagnation will compel further depositor withdrawal from Ethena, like it did throughout the middle of 2024 as ENA plunged 85% off post-launch highs.

See 45+ other active token ratings in the Citizen-only Token Hub 🔥