THOUGHTS ON KEEPING UP WITH WHAT'S HAPPENING IN CRYPTO

Summary from the TLDR Crypto newsletter

Incentives drive onchain activity. In 2020, Compound's liquidity mining program increased protocol TVL from $100M to $600M in a week, sparking DeFi summer. In 2021, Polygon's joint liquidity mining programs with DeFi protocols like Aave led to Polygon's TVL increasing from $100M to billions. In 2024, Layer 2 solutions like Mode seem to be imitating Blur/Blast's points incentive program. Mode's TVL jumped $100M in a day during a “3X points event”. Future incentives will follow a similar pattern, innovating and being widely adopted until exhausted.