DeFi protocol economics and UX milestones: Uniswap fee switch live, Uniswap Earn with Morpho vaults, Aave consumer app launch, AAVE on Solana expansion
Key Questions
What is LitVM and how does it support Litecoin?
LitVM is a ZK-rollup L2 infrastructure that brings smart contracts to Litecoin, enabling potential RWA and DeFi applications. It received a $1M strategic investment from Nasdaq-listed Lite Strategy, with involvement from Charlie Lee adding credibility.
How does the Botanix shutdown relate to Litecoin L2 developments?
Botanix, a Bitcoin L2 project, shut down with only $119K TVL after raising $14.4M, serving as a cautionary example. LitVM's progress challenges narratives that Bitcoin DeFi users lack interest in such infrastructure.
What other Bitcoin L2 projects are gaining attention alongside LitVM?
Citrea, a Bitcoin L2 ZK rollup, is also receiving increased focus in the space. However, LitVM currently reports zero adoption metrics despite its scalability features like bundling thousands of transactions into zero-knowledge proofs.
Uniswap finally activated its fee switch and UNI burn—$5.2M daily fees, trailing only Tether and Circle. Robinhood Chain integration is a major volume driver. Governance votes on expanding fee capture to v4 and more chains could accelerate burns. Uniswap launches Earn with Morpho lending vaults ($11.79B deposits, Gauntlet curation, no lockup, no extra fee) – directly competing with Aave/Compound and boosting user retention. Aave launches a consumer-facing app with stable vaults, balance protection (insurance), and fiat on-ramp via Aave Push—bridging institutional lending to retail via smartphone, no wallet setup. $15M revenue projection and 50K waitlist signal real adoption. AAVE launches on Solana, testing Solana's DeFi maturity and Aave's multi-chain strategy, with strong community traction (289 likes). These developments mark a shift in DeFi protocol economics and user experience, moving toward sustainable fee models and mass adoption.