DuneDigest046

Kalshi, a CFTC-regulated prediction market exchange, reached all-time-high liquidity during the Super Bowl, with trading volume surpassing $800 million on game day alone. Market depth was sufficient that a $22 million position on the Seahawks could reportedly have been placed without materially shifting the odds, bringing liquidity conditions closer to traditional derivatives markets and significantly reducing slippage for large trades. In parallel, Intercontinental Exchange (ICE), operator of the NYSE, integrated Polymarket data through its new Polymarket Signals and Sentiment Tool. The product aggregates decentralized prediction market data into a normalized, compliant feed, mapping event probabilities to traditional securities to support portfolio risk assessment, sentiment analysis, and early-warning indicators.

Why this matters: Prediction markets are approaching the scale required to absorb institutional capital. Liquidity depth at Kalshi reduces execution risk for large participants, while ICE’s integration of decentralized market data formalizes prediction markets as an institutional signal layer.

Source: dune.com/datadashboards/prediction-markets

Uniswap Labs and Securitize announced that BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) is now available to trade via UniswapX. The integration enables whitelisted BUIDL investors to swap fund shares bilaterally with approved market participants using UniswapX’s RFQ-based execution model, with atomic onchain settlement. Trading is facilitated through Securitize Markets, with access limited to pre-qualified investors. Quotes are sourced from a network of whitelisted subscribers—including firms such as Wintermute, Flowdesk, and Tokka Labs—who compete to provide the most competitive execution. Unlike traditional AMM-based pools, UniswapX routes orders through offchain price discovery before final settlement onchain, improving capital efficiency and reducing slippage for larger trades. The integration allows near-instant liquidity between BUIDL and USDC, creating a direct bridge between a regulated, tokenized U.S. Treasury fund and DeFi-native execution infrastructure. Since launching in July 2023, UniswapX has processed over $24B in cumulative volume, with Wintermute emerging as the leading filler by executed volume.

Why this matters: This development strengthens the evolution of tokenized Treasuries from passive wrappers into tradable instruments integrated directly into decentralized execution layers. By combining regulated issuance (Securitize), institutional asset management (BlackRock), and advanced RFQ-based routing (UniswapX), the collaboration demonstrates how fixed-income products can enter blockchain-native liquidity environments without abandoning compliance or market structure standards.

Source: dune.com/flashbots/uniswap-x

Spark, incubated by Sky (formerly MakerDAO), is one of the largest onchain asset allocators, managing over $9B in stablecoin liquidity across DeFi, CeFi, and RWAs. Its core products include SparkLend (over $5B in deposits), Spark Savings ($4.2B in stablecoin liquidity with ~4% risk-adjusted rates), and the Spark Liquidity Layer, which has deployed capital into venues such as Maple to support off-chain crypto lending.

Spark has now deepened its institutional strategy through Spark Prime and an expanded integration with Anchorage Digital. Spark Prime provides a CeDeFi margin framework powered by Arkis, enabling institutions to borrow stablecoins against collateral distributed across centralized exchanges, DeFi protocols, and qualified custodians under a unified risk engine. Spark’s integration with Anchorage Digital’s Atlas infrastructure enables tri-party collateral arrangements similar to traditional repo markets. Under this model, Spark has already facilitated $150M in USDC loans backed by ~$222M in BTC collateral, with assets monitored in real time via Spark’s data dashboards as well as Dune. The target market is significant, with off-chain crypto lending estimated at ~$33B.

Why this matters: Spark demonstrates how DeFi liquidity can be structured into institution-ready credit infrastructure. By combining large-scale onchain capital pools with qualified custody, tri-party collateral management, and unified risk frameworks, Spark embeds blockchain-native liquidity into familiar institutional lending workflows. Rather than forcing institutions fully onchain, this model extends stablecoin credit into regulated custody environments—expanding the addressable market while preserving transparency and capital efficiency.

Source: dune.com/sparkdotfi/spark-tri-party-loans-tracking

On January 26, Kraken launched DeFi Earn, a product designed to deliver onchain lending yields through a simplified exchange interface. Users deposit cash or stablecoins, which are converted into USDC and allocated into audited Veda-administered vaults managed by Chaos Labs and Sentora. These vaults deploy capital across lending protocols such as Aave, Morpho, Euler, and Curve, with Kraken abstracting away wallets, bridging, and execution complexity. Three USDC vaults are available at launch—Balanced Yield and Boosted Yield (managed by Chaos Labs) and Advanced Strategies (managed by Sentora), with variable yields currently ranging roughly from ~2% to ~5.5% APY. As of mid-February, combined TVL across the vaults exceeds $65M, with Advanced Strategies accounting for the majority of assets (~$46M). staked capital is largely bridged to Ethereum for deployment, though portions remain on Kraken’s Ink chain. Vault performance fees are set at 25% of yield, with revenue shared between Kraken, curators, and vault infrastructure.

Why this matters: Kraken is packaging DeFi credit markets into an exchange-native product aimed at mainstream users and institutions seeking yield without direct protocol management. Rather than competing with DeFi, Kraken is positioning itself as a distribution layer on top of it, curating risk-managed vaults, handling custody and routing, and monetizing access through performance fees. The model reflects a broader trend: centralized platforms integrating onchain yield as a strategic retention and onboarding layer, effectively turning DeFi into backend infrastructure while maintaining user-facing control and compliance.

Source: dune.com/lindyhan/kraken-defi-earn

Morpho is increasingly emerging as core lending infrastructure for tokenized capital markets. Ondo Global Markets’ tokenized U.S. equities—starting with SPYon and QQQon—are now live in DeFi lending markets via Morpho, with risk parameters defined and monitored by Gauntlet. These assets can be supplied as collateral within isolated Morpho markets, allowing institutions to borrow stablecoins against tokenized ETFs under conservative, data-driven collateral factors and liquidation thresholds.

This marks a structural shift. Instead of simply holding onchain representations of SPY or QQQ, market participants can now deploy them within lending markets to support leverage, hedging, and capital-efficient strategies, integrating traditional equities directly into Ethereum’s credit layer.

Institutional access is further reinforced by Anchorage Digital, which has added support for Morpho vaults within its federally regulated custody platform. Asset managers and venture firms can now interact with Morpho’s non-custodial vault strategies directly from Anchorage, while securely custodying ERC-4626 vault tokens—the onchain receipts of vault participation—within a qualified custodian framework. Morpho now holds almost $10B in deposits, reinforcing its role as an institutional-grade liquidity backend.

Why this matters: Morpho is evolving into a modular credit layer for tokenized markets. By enabling tokenized stocks to function as collateral and integrating with regulated custody infrastructure, it connects traditional capital markets exposure with programmable, transparent lending rails. The result is not just tokenization, but composability—where equities, stablecoins, and institutional custody converge into an onchain balance sheet infrastructure capable of supporting scalable, compliant capital flows.

Source: dune.com/morpho/gmorpho-dashboard

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Spark Anchorage

Morpho - Supply per Chain

Flashbots Uniswap X transactions

Kalshi Market report

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