Crypto markets dipped on Thursday following cooler-than-expected U.S. wholesale inflation data and cautionary remarks from Fed chair Powell.

Good morning Defiers!

Despite rumors of a U.S. default and pessimism over Bitcoin’s price action, there’s plenty to be positive about in the crypto markets today.

After a turbulent few months, it seems like DeFi is finally regaining some momentum, with Solana now accounting for just over half of all dApp revenue. Decentralized exchange Meteora also managed to rake in more fees than Circle on May 13.

Meanwhile, ETHFI and KAITO continue to rally strongly, while XSY has launched Unity on Avalanche and Coinbase has partnered with Riot Games.

Here’s what else you need to know:

* **Hot topics:** A new cross-chain lending aggregator aims to unify liquidity across protocols

* **Market movers:** As Fed chair warns of higher rates, crypto dips

* **Solana now dominates dApp revenue as Ethereum’s fee share plunges to 13%**

* Capital management platform XSY has announced the beta launch of its flagship Unity (UTY) product on the Avalanche blockchain, alongside the close of a $5 million Pre-Series A funding round.

* Rising rapidly through the ranks of highest daily fee-generating protocols comes cross-chain DEX aggregator Meteora, which has surpassed USDC issuer Circle.

Now, let’s get started!

Top Stories

A New DeFi Primitive Aims to Unify Liquidity Across Protocols

Soul, a cross-chain lending protocol aggregator, has launched to unify liquidity across lending protocols and offer the best borrowing and lending rates across ecosystems.

The protocol, which has aggregator modules for Aave, Kava, and Optimism, among others, allows users to supply assets on one protocol and borrow against them on another, optimizing yield strategies without bridging assets.

“We can aggregate lending protocols and cross-chain liquidity using LayerZero,” said David, core contributor at Soul. “This allows users to choose the best lending protocol for their needs and easily move between them.”

As an example, users can supply stablecoins on Kava and borrow against them on Aave at competitive rates through Soul.

“We are able to offer the best of both worlds,” said David. “Users can enjoy the high yields and low fees of Kava, and the deep liquidity and variety of assets available on Aave.”

Soul is also introducing a new DeFi primitive called cross-chain lending coordination. This allows users to create advanced strategies that span multiple protocols and chains.

For instance, users can supply ETH on Optimism and use that collateral to borrow another asset on Kava, combining the advantages of both protocols.

“This is a new and exciting area of DeFi that we are eager to explore further,” said David.

Video of the Day

Check out The Defiant’s latest video for a deep dive into Ethereum’s newest upgrade, Pectra. We explore how this update could impact both developers and the broader crypto market.

Solana Now Dominates dApp Revenue as Ethereum’s Fee Share Plunges to 13%

Solana now commands just over 50% of total dApp revenue for all of dApp ecosystem.

The Solana dApp scene has flourished in recent months thanks largely to the rapid rise of memecoin craze, which began in April with the launch of the first iteration of Pepe coin on Ethereum.

Solana dApps have generated $106.46 million in the last 24 hours, compared to $90.69 million for all other blockchains. Ethereum dApps are a distant second at $12.84 million.

At the start of May, Ethereum dApps still held a majority share of total dApp revenue, but the chain’s overall share has since plunged to 13%.

Meanwhile, dApps on other blockchains, such as Optimism, Arbitrum, and Mantle, now account for 10.37% of total dApp revenue.

Capital Management Platform XSY Launches Synthetic USD Stablecoin on Avalanche, Secures $5M in Pre-Series A Funding

Capital management platform XSY has announced the beta launch of its flagship Unity (UTY) product on the Avalanche blockchain, alongside the close of a $5 million Pre-Series A funding round.

Unity is a synthetic USD stablecoin designed to offer efficient cross-chain and cross-protocol liquidity management for DeFi protocols, liquidity providers, and traders.

The platform’s native token, XSY, will serve as the primary unit of account and governance within the Unity ecosystem.

XSY’s platform is powered by a unique capital management technology that leverages a multi-token reserve system to maintain the stability of UTY even during periods of market volatility.

The startup previously launched its first product, Hatom, a decentralized lending protocol on Optimism, in 2021. Since then, Hatom has facilitated over $2 billion in