Hey Edge readers,

We cooked with the 🦙 over at DL Research to unpack the world of yield optimizers, how they've evolved over the years, and how YO stands out as a Gen 3 protocol. This week, dive into the history of yield optimizers, starting from early experiments to today's multichain yield layer.

Stay sharp. 🫡

-The Exponential team

The Rise of Gen 3 Optimizers

Disclaimer: This content should not be taken as financial advice. Always do your own research before making any investment decisions.

TL;DR

• Market takes a tumble, YOverse unphased

• YO team hitting the pavement, shaking hands, building things.

• yoEUR growing quickly w/ Societe Generale's EURCV addition (+ hidden alpha)

• IPOR yoUSD Looopercap raised

• Something new coming...

🔗 Check out the full article.

In the news 🗞️

• Crypto markets rebound after record $19B wipeout. Following the largest single-day liquidation in crypto history, markets bounced back as BTC and ETH regained ground from Friday’s lows. The crash, triggered by President Trump’s sudden 100% tariff on Chinese imports, erased $670 billion in market value and caused mass auto-liquidations across exchanges. Despite the chaos, DeFi platforms remained stable, highlighting the sector’s growing resilience.

• Aave weathers record stress test after flash crash. Aave endured $180 million in automatic liquidations—the largest in its history—without human intervention. Founder Stani Kulechov called it Aave’s ‘largest stress test,’ highlighting the platform’s resilience and the growing maturity of DeFi infrastructure.

• Hyperliquid opens permissionless perp markets with HIP-3. The decentralized exchange’s new upgrade allows anyone staking 500,000 HYPE (~$20.5M) to deploy their own perpetual futures markets, complete with custom parameters, fee structures, and independent orderbooks. The change turns Hyperliquid into open financial infrastructure, enabling builders to launch new types of synthetic assets and markets directly onchain.

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