Since Last Update
- Published five long-form quarterly and liquidity reports across ETHplus, eUSD, USD3 and bsdETH covering liquidity conditions, collateral risk, yield compression, distribution trends and governance activity across the Yield DTF ecosystem.
- Posted 3 RFCs across ETHplus and eUSD
- Engaged extensively in ETHplus Q2 rebalance discussions
- Maintained 100% IP vote participation voting on protocol upgrades and revenue share updates
Quarterly Reporting
Alongside direct governance participation and proposal discussion, I also completed a number of long-form quarterly reports across the Yield DTF ecosystem. These reports aim to provide governors, stakeholders and potential allocators with transparent updates on protocol performance, liquidity conditions, collateral risk, distribution trends and governance activity, while also helping inform future governance direction and rebalance discussions.
Published ETHplus’ Q1 2026 quarterly report covering supply stabilisation following the Q4 deleveraging event, growth in wallet activity and transfer metrics, governance execution and the emergence of new distribution channels such as the Tulipa ETHplus vault. The report also highlighted improving diversification following the Q1 rebalance and the growing importance of sustainable, unincentivised liquidity.
Produced a comprehensive liquidity analysis assessing the mint and redemption liquidity of ETHplus and its constituent collateral assets. The report identified ETHx as the primary redemption bottleneck, highlighted worsening liquidity conditions across the wider LST sector and helped inform the subsequent ETHplus Q2 rebalance discussion.
Published eUSD’s Q1 2026 quarterly report examining the protocol’s ongoing transition from incentive-driven DeFi growth toward a fintech-led distribution model. The report highlighted continued growth in UglyCash balances, contraction across DeFi markets following incentive removals and the implications of the updated 90/10 revenue share framework for stRSR holders.
Published bsdETH’s Q1 2026 quarterly report focused on the protocol’s stabilisation following the sharp deleveraging event observed in late 2025. The report covered recovering ETH-denominated supply, improving transfer activity and the role of Morpho and emerging index DTF integrations in rebuilding long-term distribution.
Published USD3’s Q1 2026 quarterly report analysing the protocol’s transition away from incentive-driven growth toward a smaller but more organic baseline. The report examined declining DeFi liquidity, basket yield compression, the loss of Morpho distribution and the need for renewed basket optimisation and distribution expansion going forward.
RFCs Posted
This section highlights all the RFCs I have posted since my last delegation platform update. It includes links and the RFC summary.
Updates to the existing ongoing proposal of sharing eUSD Revenue with participating fintechs, Ugly Cash and Sentz. The proposed proposal, if enacted, updates the Revenue Share in order to maintain compliance with the rules of the original revenue share proposal and the subsequent revenue share update proposal which saw 10% of Fintech Revenues redirected to stRSR holders.
Original Revenue Share Programme Proposal.
Fintech Revenue Share Adjustment (90/10) Proposal.
The April 2026 ETHplus Liquidity Analysis highlighted a growing misalignment between the current collateral basket and the ETHplus mandate. Most notably, ETHx has become the primary redemption bottleneck, causing basket slippage to exceed the mandated 0.5% threshold at roughly 5,000 ETH. At the same time, the recent increase in the ETHplus take rate from 5% to 10% has pushed holder yield below the stETH benchmark, while rising concentration within individual collateral assets requires closer monitoring against the mandated 10% dependency limits.
This proposal seeks to address these issues through a rebalance that removes rETH, reduces ETHx exposure, increases weETH and frxETH allocations and maintains stETH at 50%. The proposed basket improves redemption capacity and holder yield while remaining diversified across multiple ETH staking protocols.
While the rebalance temporarily places ETHplus above the mandated dependency threshold for frxETH, this is expected to normalise as externally incentivised looping positions continue to unwind and ETHplus supply contracts further in the coming weeks. Given this dynamic, execution is recommended only once these positions have largely exited.
| Metric |
Current Basket (April 2026) |
Proposed Basket |
Reason for Change |
| Redemption Slippage Threshold Breach |
~5,000 ETH Redeemed |
~7,000 ETH Redeemed |
Improved Redemption Capacity |
| Holder Yield |
2.30% |
2.39% |
+9bps |
| Blended Basket Yield |
2.55% |
2.65% |
+10bps |
| stETH Allocation |
50% |
50% |
Unchanged |
| weETH Allocation |
22% |
25% |
Increased (+3%) |
| rETH Allocation |
10% |
0% |
Reduced (-10%) |
| frxETH Allocation |
10% |
20% |
Increased (+10%) |
| ETHx Allocation |
8% |
5% |
Reduced (-3%) |
| Diversification Profile |
0.68 |
0.65 |
Slight Reduction |
| Basket Share of frxETH TVL |
5.45% |
10.89% |
Increased dependency risk (likely transient as incentivised LPs exit ETHplus positions) |
| Mint Slippage Threshold Breach |
Within mandate past tested range |
~2,500 ETH Minted |
Slight deterioration versus mandate amid weaker market-wide liquidity |
Governance Judgement and RFC Commentary
A record of my direct engagement with RFCs including praise, criticism and constructive challenge since my last update. These comments are shared to demonstrate how I evaluate proposals and where I believe the protocol should or should not evolve in the future.
ETHplus Rebalance Proposal Q2 2026
I remained heavily engaged throughout discussion of the ETHplus Q2 rebalance proposal, particularly around the proposed removal of rETH and consideration of alternative collateral assets such as OETH. My commentary focused on balancing liquidity resilience, redemption capacity, yield optimisation and dependency risk against the ETHplus mandate. In particular, I highlighted growing concerns around ETHx acting as the primary bottleneck of the ETHplus redemption curve.
Around rETH, I acknowledged Rocket Pool’s strong decentralisation ethos and upcoming technical improvements, including the 4 ETH bond reduction and direct redemption roadmap, while also expressing concern around the fragility of its current liquidity profile following the Balancer exploit and rsETH deleveraging event. I also noted that the current 30d yield profile sits around ~2.1%, below the stETH benchmark and weaker than competing basket constituents. While the Rocket Pool team expects improvement toward year end, I felt the current basket should prioritise prevailing liquidity and yield conditions rather than forward expectations alone.
I also engaged extensively around the potential inclusion of OETH. While I recognise the attractiveness of its tighter peg mechanics, higher yield profile and growing DVT-based staking architecture, I ultimately expressed caution around inclusion at this stage. My concerns centred around the relatively small backed supply, AMO complexity and the limited evidence of how the system behaves during periods of direct protocol stress.
Overall, I support rebalance direction focused on improving redemption capacity and restoring closer alignment with the ETHplus mandate, while remaining cautious around execution timing and temporary dependency breaches. Further analysis will be required in early June to assess how the ongoing unwind of incentivised ETHplus positions has progressed, at which point an updated collateral basket and allocation profile can be considered based on the prevailing supply, liquidity and dependency conditions.
Implementation Proposal Votes
Vote: FOR
Vote: FOR
In favour for both of these proposals as they are aligned with the mandate set out in the original revenue share framework and the subsequent adjustment. I supported these revenue updates so FinTech compensation accurately reflects the eUSD balances they hold.
Vote: FOR
I voted for this proposal as it upgrades ETHplus to the latest supported protocol release, reducing security and operational risk from running outdated code. It also aligns ETHplus with audited features that improve safety and future governance flexibility without changing the current basket or parameters.
