The DAT Revolution: How Treasury Companies Could Ignite Solana's DeFi Summer

The cryptocurrency landscape is witnessing an unprecedented surge in Digital Asset Treasury companies, commonly referred to as DATs. These corporate entities, which accumulate and hold cryptocurrency on their balance sheets, have emerged as a potentially transformative force for the Solana ecosystem. In a recent episode of Lightspeed, host Jack Knave sat down with Sang Kim to explore the thesis that Solana DATs could be the catalyst for a new DeFi summer on the network.

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The conversation comes at a pivotal moment for the industry. With billion-dollar treasury raises becoming nearly weekly occurrences and several new DATs announcing their intention to accumulate Solana specifically, the ecosystem stands at a crossroads. The question on everyone's mind is whether this frothy trend will lead to sustainable growth or whether it's destined to contribute to another crypto winter. Kim presents a compelling case for the former, arguing that the unique characteristics of Solana's DeFi ecosystem position it perfectly to absorb and productively utilize this influx of capital.

The MicroStrategy Blueprint and Its Evolution

The DAT phenomenon traces its origins back to MicroStrategy's groundbreaking decision to convert its corporate treasury into Bitcoin. This strategy, pioneered by Michael Saylor, demonstrated that publicly traded companies could use cryptocurrency as a treasury reserve asset while providing shareholders with leveraged exposure to digital assets. The model has since been replicated across the industry, spawning numerous imitators on both Bitcoin and other chains.

What began as a Bitcoin-centric strategy has now expanded dramatically across the cryptocurrency landscape. Kim notes that there are now "lots of ETH DATs these days, like Bitmine or sharply gaming or either machine." This proliferation demonstrates the market's appetite for corporate vehicles that provide exposure to various cryptocurrency assets beyond Bitcoin.

The evolution to Solana represents the next frontier in this trend. As Kim emphasizes, "it's coming to Solana, right? Like everyone is announcing that they are doing like 1 billion pipe." The scale of these announcements is remarkable, with Sharp Technology alone recently revealing plans for a $400 million Solana accumulation strategy, accompanied by a fully diluted valuation exceeding $300 million in Solana holdings.

Solana's Inflation Challenge Creates Opportunity

One of the most critical factors differentiating Solana DATs from their Bitcoin counterparts is the network's inflation dynamics. While Bitcoin operates on a fixed supply schedule with no staking mechanism, Solana has a "really big inflation rate" that DAT operators must actively address. This seemingly negative characteristic actually creates a unique opportunity for innovation and differentiation.

The current staking APY on Solana sits at approximately 7%, a figure that Kim highlights as both a challenge and an opportunity. This rate significantly exceeds Ethereum's staking yield, which hovers around 2-3%. For DAT operators, this inflation represents a hurdle that must be cleared simply to maintain purchasing power, but it also means that productive capital deployment can generate meaningful returns.

The inflation challenge forces Solana DATs to become active participants in the DeFi ecosystem rather than passive holders. Unlike Bitcoin treasuries that simply accumulate and hold, Solana DATs must develop sophisticated yield generation strategies to "hedge this inflation." This requirement transforms what could be inert capital into active liquidity that powers the broader ecosystem.

The Competitive Landscape Among Solana DATs

Kim presents a fascinating market dynamic: with more than ten Solana DATs already operating or in development, retail investors face a genuine choice about which vehicles best serve their interests. This competition, he argues, will drive innovation in yield generation strategies and ultimately benefit the entire ecosystem.

"In this free market, like retails have to choose one DAT between more than 10 of Solana DATs," Kim explains. "And it depends on how much yield they are generating." This competitive pressure creates a powerful incentive for DAT operators to maximize returns while managing risk appropriately.

The metric that Kim identifies as central to this competition is "SPS" or "Solana per share" (analogous to Bitcoin per share metrics used by MicroStrategy and similar companies). DATs that successfully grow their SPS over time will attract more investor interest, while those that fail to generate sufficient yield will see their competitive position deteriorate.

The DeFi Stack: A Case Study in Yield Generation

Perhaps the most illuminating portion of the conversation involves Kim's detailed breakdown of how sophisticated DATs are actually generating yield. Using the example of one particular DAT's strategy, he walks through a multi-layer approach that touches several DeFi protocols.

The strategy begins with the creation of a native liquid staking token. "The FDV is like they launched their own add a C named DFTV Sol with Sanctum," Kim explains. This partnership with Sanctum, one of Solana's leading liquid staking infrastructure providers, creates the foundation for more complex yield strategies.

From there, the liquid staking tokens are restaked through Fragmetric, earning additional rewards. "They are re-staking it with Fragmetric. And they are getting Frag Sol," Kim notes. This layer adds the benefits of restaking infrastructure to the base staking yield.

The strategy then incorporates fixed yield products through Exponent, a Solana-based yield tokenization protocol. By converting their positions into principal tokens (PT), the DAT locks in "10% fixed yield." This provides predictability and downside protection while maintaining exposure to the underlying assets.

Finally, these positions are deployed as collateral in Kamino, one of Solana's premier lending protocols. This allows the DAT to either earn additional lending yield or potentially leverage their positions for enhanced returns. The result is a combined yield of "11 to 12% per year."

Why These Yields Matter for DeFi Protocols

The implications of this yield-chasing behavior extend far beyond the DATs themselves. Every protocol touched by these treasury operations benefits from increased TVL, deeper liquidity, and more robust market activity. Kim's thesis is that this creates a virtuous cycle: DATs need yield, protocols provide yield opportunities, increased TVL improves protocol metrics, which attracts more users and capital.

Fragmetric, the restaking protocol mentioned prominently in the discussion, exemplifies this dynamic. As Kim notes, these treasury companies "with tons of soul sitting around need to do something with it," and restaking protocols like Fragmetric represent an ideal destination for this capital. The protocol needs to find TVL sources to create yield for their users, and DATs provide exactly this type of patient, long-term capital.

The timing of this conversation is particularly significant given that it coincided with DeFi DevCorp's NASDAQ bell ringing, a milestone event that symbolizes the maturation of the Solana DeFi ecosystem. The convergence of institutional-grade treasury vehicles with increasingly sophisticated DeFi protocols suggests a maturing market that can absorb and productively deploy significant capital.

Comparing Ethereum and Solana DAT Strategies

Kim draws important parallels between the emerging Solana DAT landscape and its Ethereum counterpart, while highlighting key differences that may favor Solana's ecosystem development. The fundamental challenge for both ecosystems is the same: DATs must generate yield to justify their existence and compete for investor capital.

"All the ETH DATs need to build their own DeFi strategy to exceed 3% of their staking rate," Kim observes. He notes that Ethereum-based treasury companies are "leveraging restaking like in Eigen layer or symbiotic to make the better yields." This parallel development demonstrates that the restaking thesis is not unique to Solana but represents a broader industry trend.

However, Solana's higher baseline inflation rate creates a more urgent imperative for yield generation. While Ethereum DATs can potentially remain competitive with relatively simple staking strategies given the lower inflation rate, Solana DATs must be more aggressive and sophisticated in their DeFi integration. This necessity drives innovation and ultimately benefits the entire ecosystem.

The Restaking Revolution on Solana

Restaking represents one of the most significant innovations in blockchain infrastructure over the past several years. Originally pioneered on Ethereum through EigenLayer, the concept involves using already-staked assets to secure additional network services, earning additional yield in the process. Solana's restaking ecosystem, while newer, is developing rapidly.

Fragmetric emerges from this conversation as a key player in Solana's restaking landscape. By providing infrastructure for DATs to deploy their liquid staking tokens into restaking positions, protocols like Fragmetric serve as crucial intermediaries in the yield generation stack. The symbiotic relationship between DATs seeking yield and restaking protocols seeking TVL creates natural market dynamics.

The integration between restaking, liquid staking, and lending protocols demonstrates the composability that has made DeFi revolutionary. Each layer builds upon the others, creating possibilities that wouldn't exist in traditional finance. A single Solana position can simultaneously contribute to network security through staking, secure additional services through restaking, provide collateral in lending markets, and generate fixed yield through tokenization protocols.

Market Structure Implications

The entrance of institutional-grade treasury vehicles into Solana DeFi has profound implications for market structure. These entities bring patient capital, professional treasury management practices, and ongoing demand for yield-generating opportunities. Unlike retail capital that may flee at the first sign of market stress, DAT capital tends to be sticky and strategically deployed.

Kim's emphasis on SPS (Solana per share) as the key competitive metric reveals how DAT operators think about their responsibilities. Every decision about yield generation ultimately comes back to whether it will increase or decrease the amount of Solana attributable to each share. This creates a clear alignment between DAT management and shareholder interests.

The competitive dynamics Kim describes should lead to increasingly sophisticated treasury management strategies. DATs that simply stake their Solana and collect base rewards will be outperformed by those that actively manage their positions across the DeFi stack. This competition drives innovation and pushes the ecosystem forward.

Risk Management Considerations

While the conversation focuses primarily on the bullish implications of DAT activity, it's important to acknowledge the risk management challenges inherent in these strategies. Multi-layer yield strategies that span multiple protocols introduce smart contract risk at each layer, liquidity risk in the underlying positions, and market risk from price volatility.

Sophisticated DAT operators must balance yield generation against these risks. The fixed yield approach using Exponent's PT tokens represents one risk mitigation strategy, providing predictable returns regardless of variable rate fluctuations. Collateralization strategies in protocols like Kamino must be managed carefully to avoid liquidation during periods of market stress.

The interconnected nature of Solana's DeFi ecosystem means that problems in one protocol can cascade through others. DATs holding positions across multiple protocols must monitor their exposure carefully and maintain sufficient liquidity reserves to respond to changing conditions. This professional approach to risk management, brought by institutional treasury operators, may actually improve overall ecosystem resilience.

The Path to Solana DeFi Summer

Kim's boldest claim is that "all the Solana DATs will bring Solana DeFi summer." This prediction rests on the thesis that significant capital inflows from treasury companies will drive TVL growth, improve liquidity across protocols, and attract additional users and developers to the ecosystem.

The mechanics of this thesis are straightforward: DATs accumulating billions of dollars in Solana need somewhere to deploy that capital productively. DeFi protocols provide that outlet. As DAT capital flows into staking, restaking, lending, and yield farming protocols, these protocols' metrics improve. Better metrics attract more users, both retail and institutional. Increased activity drives further innovation and development. The cycle reinforces itself.

Historical precedents for DeFi summers suggest that they are typically sparked by some combination of new primitive innovation, significant capital inflows, and compelling yield opportunities. The DAT phenomenon potentially provides all three: restaking represents a relatively new primitive on Solana, billions in treasury capital represents significant inflows, and the yields described by Kim (11-12% annually) are competitive by any standard.

Sanctum's Role in the Ecosystem

The conversation highlights Sanctum as a key infrastructure provider enabling DAT yield strategies. By allowing DATs to create their own branded liquid staking tokens, Sanctum provides the foundation upon which more complex strategies can be built. This white-label approach to liquid staking infrastructure has proven enormously popular on Solana.

The partnership model between DATs and Sanctum demonstrates the composability and flexibility that characterizes Solana's DeFi ecosystem. Rather than forcing DATs to use a single liquid staking token, Sanctum enables customization while maintaining compatibility with the broader ecosystem. DAT-specific LSTs can be used in restaking protocols, lending platforms, and yield farming strategies just like any other liquid staking token.

This flexibility allows DATs to build brand identity around their liquid staking products while still benefiting from ecosystem-wide liquidity and integration. Users who prefer a particular DAT's approach can hold that specific LST while still accessing the full range of DeFi opportunities available to all liquid staking tokens.

Kamino and the Lending Layer

Kamino's mention in Kim's yield strategy breakdown highlights the importance of lending protocols in the DAT playbook. Lending platforms provide the final layer of capital efficiency, allowing deposited assets to earn additional yield or serve as collateral for leverage strategies.

For DATs, lending protocols represent both an opportunity and a responsibility. On one hand, depositing assets into lending pools generates additional yield that improves SPS metrics. On the other hand, borrowing against these positions to leverage exposure introduces additional risk that must be carefully managed.

The sophistication of Solana's lending protocols has improved dramatically over the past several years. Platforms like Kamino offer advanced features like auto-compounding, integrated liquidation protection, and seamless integration with other DeFi primitives. These capabilities make it possible for DATs to implement complex strategies that would have been impossible just a few years ago.

Exponent and Fixed Yield Products

The inclusion of Exponent in Kim's strategy description highlights an often-overlooked aspect of DeFi: fixed yield products. While most DeFi yields are variable and subject to market conditions, protocols like Exponent allow users to lock in fixed returns through yield tokenization.

For institutional treasury operators, fixed yield products provide predictability that variable rate products cannot. Knowing that a position will return exactly 10% over a given period allows for more precise financial planning and reduces the uncertainty that comes with floating rate exposure.

The PT (principal token) and YT (yield token) structure that Exponent employs separates the fixed return from the variable upside, allowing users to choose their desired risk/return profile. DATs seeking predictable returns can hold PTs, while those willing to accept more volatility in pursuit of higher returns can hold YTs.

The Korean Crypto Scene and Global Perspective

Sang Kim brings a unique perspective to this conversation, drawing on his experience in the Korean cryptocurrency market. Korea has long been one of the world's most active crypto markets, with particularly strong retail participation and a unique market structure that has sometimes diverged significantly from global trends.

The interest from Korean market participants in Solana DATs suggests that this trend has global legs. International capital flows into Solana treasury vehicles could provide significant momentum for both the DATs themselves and the DeFi protocols they utilize.

Cultural and regulatory differences between markets create opportunities for arbitrage and information asymmetry. Those who can bridge different regional markets and identify opportunities across jurisdictions may have advantages in the competitive DAT landscape.

Technical Infrastructure and Scalability

Solana's technical characteristics make it particularly well-suited to the kind of active treasury management that Kim describes. High throughput, low transaction costs, and fast finality allow for sophisticated strategies that would be prohibitively expensive or slow on other networks.

A strategy that involves multiple DeFi protocol interactions—staking, restaking, yield tokenization, and lending—requires numerous on-chain transactions. On networks with high gas costs, the friction of executing such strategies might eat significantly into returns. Solana's efficient architecture minimizes this overhead.

The network's reliability has also improved significantly over time, reducing operational risk for large treasury operations. DATs need confidence that they can execute transactions when needed, particularly during periods of market stress when repositioning may be necessary.

Regulatory Considerations for DATs

While not directly addressed in the conversation, the regulatory environment surrounding DATs deserves consideration. Companies that hold cryptocurrency on their balance sheets and offer equity exposure to those holdings operate in a complex regulatory landscape that varies by jurisdiction.

The NASDAQ bell ringing by DeFi DevCorp, mentioned as the occasion for the conversation, represents a significant milestone in the mainstream acceptance of crypto-focused treasury companies. Public market listings subject companies to disclosure requirements and regulatory oversight that may actually provide comfort to institutional investors.

As the DAT sector matures, clearer regulatory frameworks will likely emerge. Companies that establish best practices for governance, custody, and disclosure may find themselves well-positioned to attract capital from risk-averse institutional investors.

The Future of Treasury Management

Kim's thesis points toward a future where corporate treasury management becomes increasingly sophisticated and integrated with DeFi protocols. The strategies he describes—layered yield generation across multiple protocols—represent the cutting edge of what's possible today, but future innovations will likely push these boundaries further.

Emerging primitives like credit protocols, options markets, and structured products will provide DATs with additional tools for yield generation and risk management. As these protocols mature and liquidity deepens, the opportunity set for treasury operators will expand.

Artificial intelligence and automated strategy execution may also play larger roles in treasury management. Protocols that can dynamically adjust positions based on changing market conditions could optimize yields while managing risk more effectively than static strategies.

Implications for Solana's Competitive Position

The DAT thesis Kim presents has significant implications for Solana's competitive position relative to other smart contract platforms. If his prediction proves accurate and DAT activity drives a Solana DeFi summer, the network could capture significant market share in the institutional treasury space.

Network effects in this sector are powerful. DATs that establish successful strategies on Solana create templates that other treasury operators can follow. Protocols that serve these DATs improve their products and attract additional capital. The resulting ecosystem becomes increasingly attractive to new entrants.

Solana's existing advantages in transaction speed, cost, and developer experience are amplified by the presence of sophisticated institutional users. These users stress-test infrastructure, provide feedback to protocol teams, and set high standards for user experience. The entire ecosystem benefits from their participation.

Investment Implications and Considerations

While Kim explicitly notes that his thesis is "not financial advice," the implications for various investment strategies are worth considering. Investors bullish on the DAT thesis might consider exposure to the protocols that will benefit from increased institutional activity, including liquid staking providers, restaking platforms, lending protocols, and yield tokenization services.

Direct investment in DAT vehicles themselves offers leveraged exposure to Solana price movements plus the potential for SPS growth from successful yield strategies. However, this exposure comes with additional risks related to DAT management, smart contract vulnerabilities, and market-making dynamics.

The competitive dynamics among DATs that Kim describes suggest that careful analysis is required when selecting specific vehicles. Not all DATs will execute their strategies equally well, and the difference between winners and losers in this space could be substantial.

The Broader DeFi Renaissance

Kim's thesis is part of a broader narrative about DeFi's maturation and institutional adoption. What began as experimental protocols used primarily by crypto-native users is evolving into serious financial infrastructure capable of serving institutional needs.

The entrance of publicly traded companies into DeFi represents a watershed moment. These entities bring legitimacy, capital, and professional standards to an ecosystem that has sometimes struggled with its reputation. Their presence validates the utility of DeFi protocols and attracts attention from participants who might have previously dismissed the space.

This institutional adoption does not replace retail participation but rather complements it. Deeper liquidity and more robust protocols benefit all users, regardless of size. The rising tide of institutional capital has the potential to lift boats across the ecosystem.

Conclusion: A New Chapter for Solana DeFi

The conversation between Jack Knave and Sang Kim illuminates a potentially transformative moment for Solana's DeFi ecosystem. The convergence of significant institutional capital via DATs with sophisticated DeFi primitives creates conditions that could spark the next major growth phase for the network.

Kim's thesis is straightforward but profound: DATs need yield to compete, DeFi protocols provide that yield, and the resulting capital flows will drive ecosystem growth. The multi-layer strategies he describes—spanning staking, restaking, yield tokenization, and lending—demonstrate the sophistication possible within Solana's composable DeFi stack.

Whether this thesis ultimately proves correct remains to be seen. Markets are unpredictable, and the competitive landscape among DATs will evolve in ways that are difficult to forecast. However, the fundamental dynamics Kim identifies—competition driving innovation, inflation creating yield imperative, and institutional capital seeking productive deployment—seem likely to persist.

For participants in the Solana ecosystem, whether as developers, investors, or users, the DAT phenomenon represents an important trend to monitor. The protocols that successfully capture institutional treasury flows will likely emerge as major players in the next phase of DeFi's evolution. And if Kim's boldest prediction proves accurate, we may be on the cusp of a new Solana DeFi summer that rewards those who position themselves appropriately.

The intersection of traditional corporate finance with decentralized protocols represents exactly the kind of bridge-building that cryptocurrency has long promised. DATs using Solana DeFi to generate yield for their shareholders exemplifies how blockchain technology can serve real economic functions. This practical utility, more than speculation or narrative, may ultimately determine which networks and protocols thrive in the years ahead.

Facts + Figures

• Solana staking APY currently sits at approximately 7%, significantly higher than Ethereum's 2-3% staking yield, creating both challenges and opportunities for DAT operators.

• Sharp Technology announced a $400 million Solana accumulation strategy with a fully diluted valuation exceeding $300 million in Solana holdings.

• More than 10 Solana DATs are already operating or in development, creating significant competition for investor capital.

• One DAT's yield strategy generates 11-12% annual returns through a combination of liquid staking, restaking, yield tokenization, and lending.

• The 10% fixed yield mentioned was achieved through Exponent's PT (principal token) products, demonstrating the availability of predictable returns in Solana DeFi.

• Billion-dollar treasury raises are becoming nearly weekly occurrences in the DAT space, indicating significant market appetite.

• DeFi DevCorp's NASDAQ bell ringing coincided with this discussion, marking a milestone for Solana DeFi institutional acceptance.

• Sanctum enables DATs to create branded liquid staking tokens, providing the foundation for more complex yield strategies.

• Fragmetric serves as the restaking layer in sophisticated DAT treasury strategies, earning additional yield on top of base staking rewards.

• Kamino functions as the lending layer, allowing DATs to maximize capital efficiency through collateralization.

• The key competitive metric for DATs is SPS (Solana per share), analogous to Bitcoin per share metrics used by MicroStrategy.

• Ethereum DATs are leveraging restaking through EigenLayer and Symbiotic to generate yields exceeding the base staking rate.

• Multiple ETH DATs mentioned include Bitmine and Ether Machine, showing cross-chain proliferation of the treasury company model.

• The DAT phenomenon originated with MicroStrategy's Bitcoin treasury strategy and has since expanded to multiple cryptocurrencies.

Questions Answered

What are DATs and why are they relevant to Solana?

DATs, or Digital Asset Treasury companies, are corporate entities that accumulate and hold cryptocurrency on their balance sheets, providing shareholders with exposure to digital assets. They are becoming increasingly relevant to Solana as numerous companies announce billion-dollar accumulation strategies specifically targeting SOL. Unlike Bitcoin DATs that simply hold and accumulate, Solana DATs face a 7% inflation rate that creates an imperative to generate yield actively, making them natural participants in the DeFi ecosystem.

How can Solana DATs generate yield to offset network inflation?

Solana DATs can generate yield through sophisticated multi-layer DeFi strategies that combine liquid staking, restaking, yield tokenization, and lending. According to Sang Kim, one DAT's strategy involves creating a liquid staking token with Sanctum, restaking through Fragmetric, converting to principal tokens on Exponent for 10% fixed yield, and deploying as collateral on Kamino. This approach generates combined yields of 11-12% annually, exceeding Solana's inflation rate and allowing DATs to grow their Solana per share metrics.

Why does Solana's higher inflation rate matter for DAT strategies?

Solana's approximately 7% staking APY represents both a challenge and opportunity compared to Ethereum's lower 2-3% rate. While this inflation means DATs must actively generate yield just to maintain purchasing power, it also creates urgency for sophisticated DeFi engagement that benefits the broader ecosystem. DATs that simply stake passively will underperform relative to those that deploy capital across restaking, lending, and yield farming protocols, driving innovation and TVL growth throughout Solana DeFi.

What is SPS and why does it matter for DAT investors?

SPS stands for "Solana per share," a metric that measures how much Solana is attributable to each share of a DAT. It serves as the key competitive metric that retail investors should use when choosing between different Solana treasury vehicles. DATs that successfully grow their SPS through effective yield generation strategies will attract more investor interest, while those that fail to generate sufficient yields will see their competitive position deteriorate. This creates powerful incentives for DAT operators to maximize DeFi engagement.

Could DATs really trigger a Solana DeFi summer?

Sang Kim strongly believes that Solana DATs will bring about a new DeFi summer because these treasury companies need somewhere to deploy their accumulated capital productively. As billions of dollars flow into staking, restaking, lending, and yield farming protocols, these protocols' TVL and liquidity metrics improve dramatically. Better metrics attract more users and developers, increased activity drives further innovation, and the cycle reinforces itself. The combination of capital inflows, new primitives like restaking, and compelling yields creates conditions similar to previous DeFi growth periods.

How do Solana DAT strategies compare to Ethereum DAT strategies?

Both ecosystems face the same fundamental challenge: DATs must generate yield to justify their existence and compete for investor capital. Ethereum DATs are leveraging restaking through protocols like EigenLayer and Symbiotic to exceed their 3% base staking rate. However, Solana's higher inflation rate creates more urgent demand for sophisticated yield strategies. While Ethereum DATs can potentially remain competitive with simpler approaches, Solana DATs must be more aggressive in their DeFi integration, which Kim argues will ultimately benefit the Solana ecosystem more.

What role does Fragmetric play in DAT strategies?

Fragmetric serves as the restaking layer in sophisticated Solana DAT treasury strategies. After DATs create liquid staking tokens through providers like Sanctum, they can restake these tokens through Fragmetric to earn additional yield on top of base staking rewards. The protocol needs TVL sources to create yield for its users, and DATs provide exactly the type of patient, long-term capital that restaking protocols require. This creates a symbiotic relationship that benefits both DAT operators seeking yield and restaking protocols seeking capital.

What protocols benefit most from DAT activity?

The primary beneficiaries of DAT activity include liquid staking providers like Sanctum, restaking protocols like Fragmetric, yield tokenization platforms like Exponent, and lending protocols like Kamino. These protocols form the stack through which DATs deploy their capital, and each layer benefits from increased TVL and liquidity. As more DATs compete to generate the best yields, they will deploy capital across an increasingly wide range of DeFi protocols, potentially benefiting the entire ecosystem.

How should retail investors evaluate different Solana DATs?

According to Sang Kim, retail investors choosing between the more than ten Solana DATs should focus primarily on yield generation capabilities. The key question is how much yield each DAT generates with their Solana treasury, as this directly impacts SPS growth. Investors should examine each DAT's DeFi strategy, risk management approach, and track record of execution. DATs that successfully utilize DeFi to exceed inflation while managing risk appropriately will be better long-term investments than those with passive or poorly executed strategies.