A key opportunity to watch is the governance proposal for Hyperliquid (HYPE), which could burn 45% of the token supply and act as a significant bullish catalyst. For a more fundamentally-driven investment, consider Pendle (PENDLE), a profitable DeFi protocol with strong revenue and growing institutional interest from the Chinese market. Pendle also offers an actionable yield opportunity, providing up to 20% APY on stablecoins for investors seeking fixed-income returns. A higher-risk, long-term bet is the newly launched 0G token, as its associated ZeroStack DAT plans to actively buy tokens from the open market, creating potential buying pressure. Overall, the market is rewarding revenue-generating protocols, so focus on projects with clear business models and sustainable cash flows.

Zero Gravity (0G)

• The 0G token just launched and is trading at a $6 billion Fully Diluted Valuation (FDV). The launch was coordinated with listings on 22 exchanges.
• The project launched a Decentralized Autonomous Trust (DAT) called ZeroStack on the NASDAQ before the token went live, which caused some controversy and questions from the community.
• The podcast host disclosed that their fund was an early-stage investor in 0G approximately two years ago.
• The CEO, Michael Heinrich, explained that the purpose of the ZeroStack DAT is to accumulate 0G tokens over time, creating a long-term holder and a potential supply sink. This is modeled after MicroStrategy's strategy with Bitcoin.
• The DAT's pre-launch price of $3 per token was determined by an independent third-party valuation firm.
• The CEO stated that the DAT will use cash raised from its equity to actively buy 0G tokens on the open market, creating buying pressure, in addition to holding tokens contributed by early investors.
• There were community concerns that the DAT was a way for insiders to get early liquidity. The CEO countered this by explaining that SEC regulations and insider trading rules make it difficult for management to sell large amounts of shares without signaling negatively to the market.
• The specific details regarding the number of locked tokens contributed to the DAT and the lockup schedule for investors will be released in future SEC filings.

Takeaways

• 0G is a new, high-valuation Layer 1 blockchain focused on providing infrastructure for decentralized AI. The token launch is a significant event, but the high FDV presents valuation risk for new investors.
• The ZeroStack DAT is a key part of the investment thesis. If successful, it could create sustained buying pressure for the 0G token. However, the structure is complex and has generated negative sentiment ("FUD") that investors should be aware of.
• Potential investors should monitor the upcoming SEC filings for ZeroStack to understand the exact amount of tokens being held and the lockup terms for insiders. This will provide clarity on the "early exit" concerns.
• This is a long-term, venture-style bet on the convergence of AI and crypto. The project's success will depend on its ability to build a thriving ecosystem of developers and applications on its chain.

Hyperliquid (HYPE)

• The token was "dumped on" over the weekend, which the host attributes to a trading competition.
• The host expressed concern about HYPE's price chart trending downwards while new competitors like Aster (ASTER) are trending upwards.
• A governance proposal was mentioned that would reduce the HYPE supply by 45% by burning tokens. This could be a significant bullish catalyst if it passes.
• Dan from CMS noted that Hyperliquid's success has attracted powerful competitors, including Binance's founder (CZ).
• He also believes the fees ("VIG") that Hyperliquid collects are "too high" and will likely face "fee compression" as competition heats up, which could impact future revenue.

Takeaways

• Hyperliquid has been a dominant player in the perpetual DEX space, but it is now facing serious competition from well-funded rivals.
• The downward price pressure combined with the rise of competitors is a key risk factor.
• The token burn proposal is a major event to watch. A significant supply reduction could positively impact the token's price by making the remaining tokens more scarce.
• Investors should consider the risk of declining revenue due to fee compression as the perpetual DEX market becomes more crowded.

Aster (ASTER) & ADMT

• Aster (ASTER) is a new perpetual DEX token associated with Binance's founder, CZ. It is viewed as a direct competitor to Hyperliquid.
• The token was pumping significantly at the time of the podcast, trading at $1.70 (up 17% on the day).
• ADMT is another new token that has been on a "tear," more than doubling from $1.00 to $2.18 in a single weekend.
• The host warned against "chasing the beta token," acknowledging that while he missed out on large gains, buying into vertical price pumps is an easy way to "get wrecked."

Takeaways

• ASTER and ADMT represent the high-risk, high-reward nature of new token launches in a bullish market.
• Their rapid price appreciation is driven by momentum, narrative (competition with Hyperliquid), and speculation.
• These are not long-term holds but rather short-term trading vehicles. Engaging with them requires a high tolerance for risk and volatility. The host's own hesitation underscores the difficulty and risk of timing these trades.

Pendle (PENDLE)

• Pendle is a mature DeFi protocol focused on yield trading, currently facilitating ~$13 billion in TVL and having reached $70 billion in trading volume.
• They are seeing significant interest from institutional funds and family offices, particularly from the Chinese market, for their fixed-yield products on stablecoins, which offer up to 20% APY.
• The protocol is profitable, generating an annualized $79 million in revenue.
• They are partnering with Giza to use AI agents to automate complex yield strategies, making them more accessible to retail users through a product called Pulse.
• Regarding the PENDLE token, the team is considering buybacks but is currently prioritizing capital for product growth and scaling. They believe strong product-market fit should come before large-scale buybacks.

Takeaways

• Pendle is a "blue-chip" DeFi protocol with proven product-market fit, substantial revenue, and growing institutional adoption.
• The move to simplify its products with AI (via the Giza partnership) could significantly expand its user base beyond DeFi experts to the broader retail market.
• While the team is not currently aggressive on token buybacks, the protocol's strong profitability provides a solid foundation for future value accrual to the PENDLE token. This is a play on the maturation and institutionalization of DeFi.

Investment Theme: Revenue-Generating Protocols ("Revenue Meta")

• The podcast highlights a major market shift towards valuing tokens that have clear, sustainable revenue streams and mechanisms to return that value to token holders (e.g., buybacks).
• Dan from CMS calls this a "great trade," identifying protocols whose revenue is driven by real user activity, like trading fees.
• Examples cited include Hyperliquid (HYPE) and Pump.fun, whose businesses are based on speculative trading interest.
• The core idea is that these tokens have a valuation "floor" based on their cash flows, making them less susceptible to pure narrative swings compared to non-revenue generating tokens.

Takeaways

• When evaluating tokens, look for projects with a clear business model. Ask: "How does this protocol make money?" and "How does that revenue benefit the token holder?"
• Protocols that generate fees from high-demand activities (like perpetuals trading or meme coin creation) are currently being rewarded by the market.
• This trend suggests a maturing market that is moving beyond pure speculation and starting to apply more traditional valuation metrics to digital assets.

Investment Theme: Decentralized Autonomous Trusts (DATs)

• DATs are publicly traded companies (like ZeroStack or MicroStrategy) that hold crypto assets, allowing traditional equity investors to get exposure. They have been a primary driver of market inflows.
• Dan from CMS expressed significant caution, calling them a "structural risk" that could "end very badly for everybody at some point."
• He noted two key risks:
  1. Declining Quality: As more DATs launch, they are holding "crappier assets," increasing overall risk.
  2. Premium Erosion: The proliferation of DATs dilutes the unique appeal of the first movers (like MicroStrategy), causing the premium they trade at (relative to the assets they hold) to shrink. Many are now trading back towards their net asset value.
• Unlike the forced liquidations of the last cycle, DATs may not be forced to sell their crypto holdings if their stock price falls. However, management could still choose to sell for business reasons.

Takeaways

• While DATs have provided a massive capital injection into crypto, investors should be aware of the systemic risks they pose, as highlighted by an experienced fund manager.
• The "DAT trade" is becoming more crowded and risky. The premium that allowed these companies to raise cheap capital to buy crypto is disappearing.
• Monitor the share price of major DATs relative to their crypto holdings (the premium/discount to mNAV). A consistent trend of trading at a discount could signal waning institutional interest.