Here are a few you should know about:
Euler
Farcaster
Saros
Sky Protocol
Please remember that some of these projects still need our code review process. Still, we want to call them out here because they preliminarily caught our eye based on our fundamental analysis process.
Sector - DeFi
Status - Active
Euler is a decentralized finance (DeFi) lending protocol on Ethereum designed to enable permissionless lending and borrowing of diverse crypto assets. It addresses the limitations of traditional DeFi platforms like Aave and Compound, which restrict illiquid or volatile assets through governance approvals.
By leveraging the Euler Vault Kit (EVK) and Ethereum Vault Connector (EVC), Euler allows users to create customizable, non-custodial lending markets for any token with a WETH trading pair on Uniswap v3, enabling flexibility and capital efficiency.
Euler’s modular architecture empowers developers to build tailored financial products, solving the problem of unmet demand for long-tail asset markets. Euler’s vision is to create a high-performance, inclusive DeFi ecosystem that maximizes utility for lenders, borrowers, and traders while maintaining Ethereum’s robust security and interoperability.
Permissionless Lending Markets: Users can list any token with a Uniswap v3 WETH pair, bypassing governance approvals, enabling rapid market creation for niche assets.
Euler Vault Kit (EVK): A modular framework allowing developers to design and deploy customized lending vaults, supporting diverse financial products like stablecoins or margin trading.
Ethereum Vault Connector (EVC): An open-source interoperability layer that connects vaults, allowing existing deposits to serve as collateral across the ecosystem, enhancing composability.
Rehypothecation: Enables lenders to lend out collateral while using it as collateral, optimizing liquidity and capital efficiency for users.
Sub-Accounts: Up to 256 sub-accounts can be supported per Ethereum account, allowing users to manage multiple positions efficiently and mitigate isolation-tier borrowing restrictions.
$EUL is the native token of the Euler protocol. The token is used in Fee Flow auctions, used as platform rewards, and represents voting power to effect change over the Euler protocol code or the Euler DAO treasury.
The total supply of $EUL is 27,182,818. Of these, 34% is allocated to Euler DAO, protocol users, or used to fund various ecosystem growth initiatives. 3.7% is allocated to the Euler Foundation, a legal entity representing the interests of the Euler DAO. 39.5% is allocated to various cohorts of strategic growth partners, who helped support the Euler protocol's development in various ways. 26.5% is with project founders and other contributors for the protocol's development.
Euler has raised $40.8M across three different funding rounds. The first one was a $800k Seed round in December 2020, led by Lemniscap and featuring CMT Digital, Divergence Ventures, and others. The second was a $8M Series A round in August 2021, led by Paradigm and featuring previous round investors. The third and the latest one was a $32M round in June 2022, led by Huan Ventures, and it saw participation from Coinbase Ventures, Jump Crypto, Jane Street Capital, and Uniswap Labs Ventures.
$EUL trades on centralized exchanges like HTX, MEXC, CoinEx, KuCoin, and Kraken, as well as decentralized exchanges like Uniswap and Balancer.
Sector - SocialFi
Status - Active
Farcaster is a decentralized social networking protocol built on Ethereum and Optimism. It is designed to create a permissionless, user-owned social graph that addresses the limitations of centralized platforms like X or Reddit, where data control and censorship restrict user freedom.
By leveraging an onchain-offchain hybrid architecture, Farcaster stores identities and core data on Ethereum and Optimism for security. At the same time, offchain hubs manage high-throughput interactions like posts (“casts”) and follows.
Farcaster’s vision is to enable sufficiently decentralized social networks where users control their data and developers can build diverse applications without gatekeeping. Farcaster solves the problem of platform lock-in by allowing users to migrate their social graphs across clients like Warpcast, fostering an open ecosystem for innovative social experiences with Ethereum’s cryptographic integrity.
User-Owned Social Graph: Users control their accounts and relationships, secured by Ethereum-based identities, enabling seamless migration between Farcaster clients without data loss.
Frames: Mini-apps embedded in feeds, allowing interactive experiences like onchain transactions, polls, or tipping, enhancing engagement within the social network.
Sign In with Farcaster: A single-sign-on feature that lets users authenticate across dApps using their Farcaster identity, streamlining Web3 onboarding.
Permissionless Development: Developers can build apps or hubs without approval, accessing Farcaster’s public social graph and APIs to create tailored social experiences.
Hub Network: Decentralized offchain nodes (hubs) process casts and interactions, syncing with onchain data for scalability while maintaining protocol neutrality.
Farcaster raised $180M in total across two funding rounds. The first was a $30M seed round in July 2022, led by a16z and participated in by Coinbase Ventures, Balaji Srinivasan, Multicoin Capital, Ribbit Capital, Standard Crypto, and others. The second was a $150M Series A round in May 2024, led by Paradigm and participated in by a16z, Variant, Union Square Ventures, Standard Crypto, and Huan Ventures.
Sector - DeFi
Status - Active
Saros is a decentralized finance (DeFi) super app and ecosystem built on Solana. It is designed to streamline crypto trading, staking, and investing by consolidating fragmented DeFi services into a unified, user-friendly platform.
Addressing the problem of complex, scattered DeFi tools that deter mainstream adoption, Saros leverages Solana’s high-throughput blockchain and its automated market maker (AMM) protocol, SarosSwap, to enable low-cost, high-efficiency transactions.
Saros’s vision is to create an “Internal Financial Market” where users access diverse assets, like crypto, real estate, and commodities, permissionlessly via a single interface. The technology stack includes Solana’s SPL token standard, a JavaScript SDK for integration, and smart contracts for SarosSwap, SarosFarm, and SarosStake, offering a seamless experience for retail and institutional users.
SarosSwap AMM: A decentralized trading protocol, enabling efficient SPL token swaps with low slippage and deep liquidity pools on Solana.
SarosFarm: An aggregation platform for incentivized liquidity pools, simplifying liquidity bootstrapping for projects and attracting providers to boost Solana-based DeFi growth.
SarosStake: Supports single-asset staking to maximize yields without impermanent loss, enhancing user returns and encouraging liquidity provision on Solana.
Saros Super App: A mobile-first interface integrating swaps, yield farming, NFT trading, and payments, providing a comprehensive DeFi experience with real-time market tracking.
Web3 Identity (Saros ID): Offers customizable digital identities for secure, user-controlled interactions across the Saros ecosystem, enhancing privacy and interoperability.
$SAROS is the native utility token of the Saros Ecosystem, with a total supply of 10 billion. It is used to incentivize and bootstrap liquidity for different parts of the ecosystem. Holders of staked $SAROS also have access to premium features. It is also a governance token.
Saros raised a total of $3.78M across two fundraising rounds. The first was a $3.75M round in January 2024 from The Spartan Group, Hashed Fund, GBV Capital, Solana Ventures, Genblock Capital, Impossible Capital, and others. The second was an IEO of $30k on the Gate.io Startup platform.
$SAROS trades on several centralized exchanges, such as Gate, Bybit, Bitget, MEXC, HTX, KuCoin, and BingX, and a decentralized exchange, RabbitSwap.
Sector - DeFi
Status - Active
Sky is a decentralized finance (DeFi) protocol and non-custodial gateway evolved from MakerDAO. It is built on Ethereum to provide a scalable, resilient ecosystem for stablecoin-based financial services, addressing the inefficiencies of centralized finance and early DeFi systems that lack user control and flexibility.
Sky introduces USDS, a stablecoin upgrading DAI, and SKY, a governance token enhancing MKR. These tokens leverage Ethereum’s smart contracts and the Sky Protocol’s modular architecture to enable seamless token upgrades, savings, and cross-chain expansion.
Sky’s vision is to create an open, borderless financial market where users maintain full custody of funds while accessing advanced DeFi opportunities like savings rates and rewards. Sky solves the problem of fragmented DeFi access by offering a unified platform for stablecoin management, governance, and ecosystem growth, prioritizing decentralization and user empowerment.
Sky Savings Rate (sUSDS): Allows users to supply USDS and receive sUSDS, earning a decentralized savings rate, providing reliable yield opportunities onchain.
Token Upgrade System: Enables seamless conversion of DAI to USDS (1:1) and MKR to SKY (1:24,000), preserving functionality while unlocking new protocol features.
Multichain Expansion: Uses Wormhole’s NTT framework to extend USDS, SKY, and sUSDS to Solana, unifying liquidity and enabling native token functionality across chains.
Sky Agent Framework: A transparent, AI-supported system for competitive DeFi operations, optimizing protocol efficiency and scalability.
Pioneer System: A referral-based reward mechanism using Stars codes to drive USDS adoption and protocol revenue through community engagement.
$DAI tokens are upgraded to $USDS at a rate of 1:1, and $MKR to $SKY at a rate of 1:24,000. $USDS powers the Sky ecosystem. It enables access to Sky token rewards and the Sky Savings Rate to accumulate additional USDS. The governance token $SKY helps accumulate activation token rewards and participation in decentralized onchain voting.
$SKY trades on several centralized exchanges such as Bitget, Kraken, Bithumb, KuCoin, Upbit, CoinDCX, and on a decentralized exchange, Uniswap.
Until next time,
Token Metrics Research Team
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