Solana DeFi Summer Is Coming: How DATs and Restaking Could Transform the Ecosystem

The convergence of digital asset treasury companies (DATs) and restaking infrastructure on Solana may be setting the stage for a new era of DeFi growth. In a revealing conversation on the Lightspeed podcast, Sang Kim, co-founder of Fragmetric, laid out his vision for how these emerging trends could breathe fresh life into the restaking narrative—a concept that captured crypto's imagination in 2023 and 2024 but has since faded from mainstream attention.

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Kim, who flew in from Seoul to participate in DeFi Dev Corp's historic NASDAQ bell-ringing event—wearing his signature white tiger costume no less—offered insights into why Solana's restaking ecosystem may succeed where Ethereum's Eigenlayer has struggled. His thesis centers on one crucial difference: actual yield generation.

What Is Fragmetric and How Does It Work?

Fragmetric is a restaking protocol built on Solana that enables users to generate additional yield on their staked assets by providing security to various node consensus networks (NCNs) within the Jito restaking ecosystem. The protocol accepts liquid staking tokens (LSTs) like JitoSOL, JupSOL, and others, converting them into a unified liquid restaking token called FragSOL.

"People really don't know about what restaking is," Kim explained during the interview. "They're just coming to Fragmetric and they just put Solana and get some pretty great APY through FragSOL." This simplicity is by design—the protocol abstracts away the complexity of restaking while allowing users to capture yields from multiple sources.

The technical innovation behind FragSOL lies in its use of Token-22, Solana's advanced token program that includes features like transfer hooks. When users transfer FragSOL, the transfer hook calls Fragmetric's program and records all transaction histories, enabling precise distribution of NCN token rewards to holders based on their holding periods. This solves a critical problem that has plagued restaking protocols on Ethereum.

The Yield Distribution Problem That Fragmetric Solved

One of the most significant technical achievements Kim highlighted was solving the yield distribution problem that has hampered Eigenlayer and its liquid restaking token providers. On Ethereum, protocols like EtherFi or Renzo face a challenging dilemma: when AVS (Actively Validated Services) protocols want to reward restakers with their native tokens, there's no efficient mechanism to distribute these tokens to LRT holders.

"If EigenDA wants to reward the restakers with Eigen token, they don't have actual solution to distribute those tokens to restakers because they hold LRTs but they can't airdrop every day because it costs a lot," Kim explained. "So what they are doing is just swapping all the AVS tokens to ETH and just adding it."

This means Eigenlayer AVS protocols are effectively forced to sell their tokens to distribute value, creating constant sell pressure. Fragmetric's Token-22 implementation eliminates this problem entirely. NCN tokens like the upcoming Switchboard token can be distributed directly to FragSOL holders without requiring market sales, making Fragmetric an attractive partner for any NCN looking to reward their security providers.

"That's why lots of NCNs are doing exclusive partnership with Fragmetric," Kim noted. "No NCNs wanted to sell their tokens at the market. So I'm pretty sure that they will 100% choose Fragmetric as their both partners."

Why Solana Restaking May Succeed Where Eigenlayer Struggled

Kim's bullish case for Solana restaking over Eigenlayer rests primarily on one protocol: Jito's tip router. This piece of infrastructure is what makes Solana's restaking ecosystem fundamentally different from its Ethereum counterpart.

Before tip router, Jito's MEV distribution was managed by a single centralized server. Tip router decentralized this process, allowing node operators to reach consensus on how MEV tips should be distributed to JitoSOL holders and validators. In exchange for maintaining this infrastructure, node operators receive 15 basis points of MEV tips.

"Jito's MEV infrastructure is the most yield-generating protocol in blockchain ecosystem," Kim stated. This isn't hyperbole—Jito captures significant value from Solana's MEV, and tip router channels a portion of this to restakers.

For FragSOL holders specifically, Kim provided concrete numbers: with slightly more than $100 million in TVL, tip router generates between 0.3% and 0.48% APY, translating to roughly $300,000 to $400,000 annually just from this single NCN. When combined with standard staking yields and other NCN rewards, the total return becomes compelling.

The contrast with Eigenlayer is stark. Despite having $19 billion in TVL, Eigenlayer's primary use case—EigenDA, a data availability layer—generates minimal revenue. "Data availability layer doesn't really create any revenue," Kim observed. "If you see Celestia or Avail... they are not generating any yield."

The NCN Ecosystem and Real Yield Generation

Beyond Jito's tip router, several other NCNs are building on Jito restaking and beginning to generate real economic value. Switchboard, the permissionless oracle network, represents one of the most significant near-term catalysts.

Switchboard operates by having node operators compete to provide the most accurate data feeds. The protocol leverages restaking to create economic incentives around data accuracy—Fragmetric delegates Solana to various Switchboard node operators and rebalances based on the correctness of their data submissions.

"There are lots of oracle AVS on top of Eigenlayer," Kim noted, "but the problem is that people don't really use them. But Switchboard—as I know, most of Solana, even for us, we're using Switchboard for Oracle. So they are already generating some yield."

With Switchboard's TGE appearing imminent based on their Twitter activity, Kim sees this as a pivotal moment for proving out the restaking yield thesis. Once live, Switch tokens will flow directly to FragSOL holders through the Token-22 distribution mechanism.

Other NCNs in development include Ping Network, which has seen growing interest, along with planned integrations from protocols like Magic Block and Squads. Each new NCN that joins the ecosystem adds another potential yield source for restakers.

How DATs Could Catalyze Solana's DeFi Summer

Perhaps the most compelling thesis Kim presented was the potential for Solana's emerging DAT ecosystem to drive massive capital into restaking and DeFi broadly. DATs—digital asset treasury companies modeled after MicroStrategy's Bitcoin strategy—have exploded onto the scene, with multiple companies now pursuing Solana-focused strategies.

"There are lots of ETH DATs these days, like Bitmine or Ether Machine, but also it's coming to Solana," Kim observed. "Everyone is announcing that they are doing one billion PIPE and two days ago, Sol Strategies announced that they are doing 400 million Solana and DeFi Dev Corp has more than 300 million of Solana."

The critical challenge these DATs face is Solana's relatively high inflation rate. To deliver shareholder value, they need to generate yields that exceed inflation—and that's where DeFi comes in.

DeFi Dev Corp provides the template. According to Kim, they launched their own LST (DFTV Sol) through Sanctum, restaked it with Fragmetric to receive FragSOL, then converted it to PT FragSOL for a 10% fixed yield through yield tokenization protocols. Finally, they lent on Kamino, generating 11-12% annual yield.

"I think it's a decent number and it can exceed the Solana inflation rate," Kim said. "If they accumulate more Solana, they need to utilize this Solana in more DeFi ecosystems so that they can make better yields for retails."

The Competition for DAT Capital

With more than ten Solana DATs now competing for retail investor attention, Kim argues that yield generation will become the primary differentiator. "Their major goal is to achieve the best SPS," he explained, referring to soul per share metrics.

This creates a natural flywheel effect. DATs competing on yield must deploy capital into DeFi protocols. More TVL in DeFi protocols strengthens the ecosystem. Stronger ecosystem attracts more DATs. The cycle continues.

Kim sees this benefiting protocols across the Solana DeFi stack: LST providers like Sanctum and Jito, restaking protocols like Fragmetric, lending platforms like Kamino, yield tokenization protocols like Exponent, and others. Each layer of the yield generation stack stands to benefit from DAT capital deployment.

The security and trust requirements of public companies may actually benefit established protocols. "As a DAT, I think it's really hard to choose which DeFi to put their Solana because it's kind of scary if they got hacked," Kim noted. This risk aversion should favor battle-tested protocols with strong track records.

Sol Strategies and the Vertical Integration Question

An interesting counterpoint Kim addressed was Sol Strategies' approach of acquiring validator operations and building their own LST infrastructure. By acquiring Lane Validator and operating Lane Sol, Sol Strategies has attempted to capture more of the value chain internally.

However, Kim argues this approach has limitations. While Sanctum has enabled hundreds of validators to launch their own LSTs, these fragmented tokens struggle to achieve DeFi integration. "Lane Sol has their own LST, but they can't really use it in DeFi to generate more yield," Kim explained.

Fragmetric's normalized token program addresses this by accepting all LSTs and providing unified liquidity through FragSOL. A DAT using DFTV Sol, for example, doesn't lose their validator relationship—they simply deposit through Fragmetric and gain access to DeFi integrations that would be impossible with their standalone LST.

"If DFTV doesn't want to lose their staking to their validator, they can just easily mint DFTV Sol through Sanctum and then they can stake this DFTV Sol to Fragmetric and get FragSOL," Kim explained. This composability preserves existing relationships while unlocking new yield opportunities.

Inside the Korean Crypto Market

Kim offered fascinating insights into the Korean crypto market, drawing from his experience building Fragmetric from Seoul. The Korean market, anchored by the Upbit exchange, represents one of the most active retail trading environments in crypto despite having no perpetual futures trading—spot only.

"If you see Upbit, they're generating really big amount of trading volume within the whole blockchain ecosystem," Kim noted. "The major trading volume is from XRP or ADA."

The demographics surprised even Kim. "One interesting group is mid-age women or men like 50 or 60 who just buy XRP in Upbit," he shared. "Most of XRP is held by Koreans, I guess... Whenever you go to a department store or some random cafe, all the mid-age women are talking about XRP."

But it's not just older retail investors. Young Koreans are deeply engaged in airdrops farming and meme coin trading, with more than hundreds of crypto KOLs running Telegram chat groups to coordinate strategies. "There are lots of airdrops farmers and meme coin traders in Korea. It's a weird culture," Kim admitted.

The Kimchi Premium and Upbit Listing Dynamics

One uniquely Korean phenomenon Kim explained is the "Kimchi Premium"—a persistent price difference where crypto assets on Korean exchanges trade 3-4% higher than global markets. Due to capital controls, Koreans cannot easily arbitrage this difference away.

This creates fascinating dynamics around exchange listings. When a token lists on Upbit, it frequently experiences massive price pumps—sometimes far exceeding the Kimchi premium. Kim referenced one extreme example: "In 2021, there was one token named NUSIPER that went 17x solely in Upbit, 17x more expensive than Binance."

This has spawned a practice Koreans call "Potari"—named after traditional merchant pockets from the Joseon dynasty. Traders buy tokens on global exchanges, transfer to Upbit, and sell at the premium. "This kind of weird behavior is happening here," Kim observed, "and I think that's why whenever a token gets listed, people are just buying that token in Binance or whatever exchanges, expecting some listing pumping in Upbit."

The Rise of Protocol Meetups in Korea

A newer trend Kim highlighted was the explosion of in-person meetups by crypto protocols in Korea. Projects invest heavily in these events, hosting them at premium hotels with excellent food and collecting wallet addresses for targeted airdrops.

"Before their TGE, Eclipse did a meetup in Korea in a really great hotel and they bought really great foods to users and they collected people's wallet addresses," Kim recounted. "And they did quite a great amount of airdrop... a few thousand dollars just for going to this."

This isn't limited to Eclipse—Kim mentioned Sonic Labs, Expent, Phantom, and "hundreds of projects" hosting similar events. The Korean market has become a priority destination for protocols seeking engaged retail users.

What makes this particularly interesting is that attendees must have their own wallet addresses, indicating genuine on-chain activity. "It's kind of like a bullish signal seeing how active they are in Korea," Kim said. He also noted the Korean government is actively pushing to launch a KRW stablecoin, potentially positioning Korea as a crypto-forward nation.

Post-TGE Lessons and Token Launch Strategy

Kim was refreshingly candid about Fragmetric's TGE experience and the challenges of launching a token in the current market environment. The protocol launched on July 1st and subsequently saw significant price declines, along with TVL dropping from $330 million pre-TGE to around $140 million.

"It's hard to talk because our price dropped so much and people hate me," Kim acknowledged with characteristic directness. His intention had been to generously compensate all contributors—point farmers received substantial airdrops, NFT holders saw value from the Topu launch, and Bybit IDO participants "got pretty great amount of money if they did sell."

The dilemma Kim identified is structural: generous airdrops create selling pressure, but stingy allocations alienate communities. "I was satisfied with how we compensated, but maybe it was not a great decision because eventually our token price dropped a lot," he reflected.

His advice for pre-TGE founders: "You need to consider really well about how your token price action will go." The current market sentiment toward altcoins is challenging, with retail preferring major assets like Solana and Ethereum over smaller protocol tokens.

The Pump.fun Comparison and Revenue Meta

Kim's experience puts him in an interesting position to comment on the broader "revenue meta" in token launches. Even Pump.fun, with its substantial revenue and aggressive buyback program, has struggled to maintain token price despite ultimately committing to 100% buybacks.

"I feel like it's a tough time for new tokens in general," host Jack Kurbineck observed, noting Pump's roughly 25% drawdown from its ICO price despite having real revenue.

Fragmetric is considering buyback proposals but waiting for sustainable restaking yields to materialize—particularly from Switchboard's upcoming TGE and other NCN integrations. "After FragSOL can reach some great APY through actual restaking yield through Switchboard or Ping Network with other partners, maybe we can proceed with buybacks after that," Kim said.

Maintaining Momentum Post-TGE

One of the most challenging aspects of protocol development that Kim discussed was maintaining excitement and growth after using the "most lucrative trick in the bag"—the token airdrop.

"It's really hard to make really great hype without token airdrop expectation," Kim admitted. The TVL drop from $330 million to $140 million illustrates this challenge starkly.

His approach is straightforward: keep building and launching products. The NASDAQ appearance in the Topu costume represents one creative effort to maintain visibility. More substantively, Fragmetric is preparing to launch FragUSD, a yield-bearing stablecoin, before year end.

"We're really good at launching products," Kim stated. "I hope that kind of new product launch can help token price back."

Fragmetric's Product Roadmap: Beyond Solana Restaking

While FragSOL remains the core product, Fragmetric is expanding into additional yield-generating assets. FragBTC and FragUSD represent this evolution, though notably these products don't rely on Jito restaking—instead leveraging DeFi yields.

For FragBTC, the strategy involves Jupiter's JLP (liquidity provider token), which generates strong yields but requires sophisticated hedging strategies that most retail users can't execute. "If you put BTC there and you need to hedge other JLP positions like Solana, it's really hard for normal people to do," Kim explained. "We want to just abstract everything for users."

FragUSD similarly aims to provide optimized stablecoin yields by deploying capital across DeFi opportunities, then issuing a receipt token that can be further utilized in yield tokenization protocols or lending markets.

This composability is key—FragUSD holders could convert to PT/YT tokens on Exponent, deposit to Kamino to borrow more USDC, and create leveraged yield positions. The abstraction layer provided by Fragmetric simplifies initial deployment while maintaining full DeFi composability.

The Future of Restaking: Infrastructure vs. DeFi

Kim offered a philosophical perspective on where restaking is headed. He sees Fragmetric's approach as fundamentally different from protocols like EtherFi, which has aggressively expanded into adjacent products like EtherFi Cash and credit cards.

"I saw restaking as an infrastructure business," Kim explained. "That's why I built normalized token program and leveraged Token-22 for token distribution and did lots of developer jobs here. But I think EtherFi thought of restaking as DeFi."

Neither approach is wrong, but they lead to different strategic directions. EtherFi's DeFi focus drove rapid integration with Ethereum DeFi protocols and expansion into consumer products. Fragmetric's infrastructure focus prioritized solving technical problems around token distribution and LST normalization.

The market will ultimately determine which approach proves more sustainable, but Kim remains committed to the infrastructure thesis while acknowledging the need for strong DeFi integrations.

What Restaking Needs: Time and Realistic Expectations

When asked about restaking's overall trajectory, Kim was optimistic but realistic. "This restaking technology is really fancy and attractive," he said. "But the problem is that it grew too fast. Eigenlayer got so many funding from A16Z. It made too much hype. They grew to 30 billion in a year. It was too much economic security for an early stage protocol."

The fundamental value proposition of restaking—allowing protocols to leverage existing economic security rather than bootstrapping their own—remains sound. Many protocols would benefit from this model for decentralization and permissionless operation.

"I believe many protocols will be using restaking to make their protocol decentralized and permissionless," Kim predicted. "But the problem is that it needs time."

This patient perspective contrasts with the 2023-2024 hype cycle that propelled Eigenlayer to prominence. Sustainable growth requires actual NCN adoption, real yield generation, and integration throughout the DeFi ecosystem—none of which can be rushed.

Fragmetric's Unique Contribution to the Ecosystem

When asked to summarize what net new value Fragmetric has created, Kim pointed to the normalized token program and Token-22 integration as genuine technical innovations.

"We built normalized token programs so that we can accept all the LSTs for restaking. At the same time, we built really great—I still really hate Token-22 because it's too complicated—but we leverage this transfer hook to distribute all the NCN tokens," Kim said.

The upcoming Switchboard TGE will be the first real test of this distribution mechanism at scale. "I'm really glad to see Switchboard's TGE because after that, we will really see how it works. We can distribute Switch tokens to FragSOL holders," Kim noted.

Even within the broader restaking ecosystem spanning multiple chains, Kim believes this approach is unique and valuable for any NCN considering how to reward their security providers.

The Tiger Costume and Building a Community

Throughout the conversation, Kim's unconventional approach to community building was evident—most notably in the white tiger costume (inspired by Korean culture, where the white tiger is an important symbol) that has become his trademark.

"We didn't have a plan to launch NFT and everything, but just because people love it, we did an NFT launch on MagicEden," Kim shared. "There are lots of people who are working for Topu, and Topu is kind of king, like the CEO of Topu Inc."

This playful approach—complete with "Topu Incorporation" lore—helps build community attachment beyond pure financial incentives. It also enables memorable moments, like wearing the costume to the NASDAQ closing bell ceremony with DeFi Dev Corp.

Comparing US and Korean Crypto Markets

Kim's perspective as someone building primarily for the Korean market but engaging with global crypto provides interesting contrasts. The US market is increasingly institutional-driven, with DATs, ETFs, and corporate treasury allocations dominating discourse.

"In the US, in my view, there really isn't a retail crypto scene or it just never really came back after FTX," host Jack Kurbineck observed. "I think the major source of demand in the US is institutional."

Korea represents almost the opposite: a vibrant retail scene with hundreds of KOLs, active Telegram communities, strong in-person meetup culture, and genuine on-chain participation. This retail energy creates different dynamics for protocol launches and community building.

Understanding these regional differences matters for protocols targeting global adoption. Success in Korea requires different strategies than success in the US, and protocols that can navigate both markets effectively gain significant advantages.

The Path Forward for Solana DeFi

Synthesizing Kim's various theses, a compelling picture emerges for Solana DeFi's near-term future. DATs accumulating hundreds of millions in Solana need to generate yields exceeding inflation to deliver shareholder value. This capital will flow into DeFi protocols—LST providers, restaking protocols, lending platforms, and yield optimizers.

Unlike the purely speculative DeFi summer of 2020-2021, this cycle could be anchored by real yield generation. Jito's tip router already distributes MEV to restakers. Switchboard's impending TGE will add oracle fees to the mix. Additional NCNs will bring their own revenue streams.

The infrastructure Fragmetric has built—normalized LST acceptance, Token-22 distribution mechanisms, unified liquidity through FragSOL—positions the protocol to capture significant share of this capital deployment. Whether DATs use JitoSOL, JupSOL, or their own custom LSTs, Fragmetric can accommodate them while providing DeFi composability that isolated LSTs lack.

Conclusion: Infrastructure for the Long Term

Sang Kim's vision for Fragmetric and Solana restaking reflects a builder's perspective—focused on solving technical problems and creating infrastructure that enables new use cases rather than chasing short-term hype cycles.

The restaking narrative may have faded from crypto's collective attention, but the underlying value proposition remains sound. Protocols need economic security. Restaking provides a mechanism to leverage existing stake rather than bootstrapping from zero. What Solana's restaking ecosystem has that Eigenlayer lacks is immediate, demonstrable yield generation through Jito's tip router.

As DATs compete for retail investor attention through yield generation, and as NCNs like Switchboard begin distributing tokens to restakers, the pieces are falling into place for a potential resurgence in restaking interest—this time grounded in real economic flows rather than purely speculative positioning.

Whether this translates into "Solana DeFi Summer" remains to be seen, but the infrastructure is being built, the capital is accumulating, and the yields are starting to materialize. For protocols like Fragmetric that have invested in solving hard technical problems during the quiet period, the opportunity is significant.

Facts + Figures

• Fragmetric currently manages slightly more than $100 million in TVL for FragSOL, down from a peak of $330 million pre-TGE

• Jito's tip router generates 0.3% to 0.48% APY for FragSOL holders, translating to approximately $300,000-$400,000 annually for restakers

• Eigenlayer has approximately $19 billion in TVL while EtherFi holds $11 billion, representing more than half of Eigenlayer's deposits

• DeFi Dev Corp holds more than $300 million in Solana and generates 11-12% annual yield through a multi-step DeFi strategy

• Sol Strategies announced $400 million in Solana allocation for their DAT strategy

• Solana's staking APY currently sits at approximately 7%, compared to roughly 2-3% on Ethereum

• Fragmetric's TGE occurred on July 1st, with TVL subsequently declining from $330 million to approximately $140 million

• Multiple NCNs are building on Jito restaking, including Switchboard (oracle), Ping Network, Magic Block, and Squads

• The Korean Kimchi Premium typically ranges 3-4% above global market prices due to capital controls

• NUSIPER token achieved 17x price premium on Korean exchange Upbit compared to Binance during 2021

• Rockaway X deposited approximately $2 million through their Rock Sol LST with Fragmetric

• Token-22's transfer hook feature enables Fragmetric to track all transaction histories for NCN token distribution without market sales

• Korea has more than 100 crypto KOLs running active Telegram communities for airdrops farming and trading strategies

• Switchboard TGE is expected imminently based on social media activity, representing a major catalyst for restaking yield distribution

• DeFi Dev Corp's strategy includes creating PT FragSOL for 10% fixed yield through yield tokenization protocols

• Fragmetric plans to launch FragUSD, a yield-bearing stablecoin, before the end of 2025

Questions Answered

What is restaking and how does it work on Solana?

Restaking is the process of using already-staked assets to provide economic security to additional protocols or services, generating extra yield beyond standard staking rewards. On Solana, Jito's restaking infrastructure allows users to stake their liquid staking tokens (LSTs) like JitoSOL or JupSOL with protocols like Fragmetric, which then provides security to node consensus networks (NCNs) like Jito's tip router and Switchboard. In exchange for this security provision, restakers receive additional rewards from these NCNs, creating a layered yield structure that exceeds what standard staking alone would provide.

Why might Solana restaking succeed where Eigenlayer has struggled?

The key difference lies in yield generation. Eigenlayer accumulated approximately $30 billion in deposits but its primary use case, EigenDA (a data availability layer), generates minimal revenue—similar to how Celestia and other DA layers struggle to monetize. In contrast, Jito's tip router on Solana distributes MEV tips to restakers, creating immediate, measurable yields. Sang Kim noted that Jito's MEV infrastructure is "the most yield-generating protocol in blockchain ecosystem," providing 0.3-0.48% additional APY just from this single NCN, with more NCNs like Switchboard preparing to distribute their own tokens to restakers.

How does Fragmetric solve the token distribution problem that plagues Eigenlayer?

Fragmetric leverages Solana's Token-22 program with its transfer hook feature to track all FragSOL transaction histories. When NCNs want to reward restakers with their native tokens, Fragmetric can calculate each holder's exact holding period and distribute tokens proportionally without requiring market sales. On Eigenlayer, LRT providers have no efficient mechanism to distribute AVS tokens to holders—they typically must swap all AVS tokens to ETH and add it to the LRT, creating constant sell pressure. This technical innovation has led NCNs to pursue exclusive partnerships with Fragmetric.

What are DATs and why do they matter for Solana DeFi?

DATs (Digital Asset Treasury companies) are public companies that hold cryptocurrency as their primary treasury asset, modeled after MicroStrategy's Bitcoin strategy. Multiple companies are now pursuing Solana-focused DAT strategies, including DeFi Dev Corp (over $300 million in SOL) and Sol Strategies ($400 million allocation). These DATs face pressure to generate yields exceeding Solana's approximately 7% inflation rate to deliver shareholder value. Kim argues this creates strong incentives for DATs to deploy capital into DeFi protocols—LST providers, restaking protocols, and lending platforms—potentially driving significant capital flows throughout the ecosystem.

What makes the Korean crypto market unique?

Korea's crypto market is extraordinarily retail-driven, with exchange Upbit generating massive trading volumes despite offering only spot trading (no perpetuals). The market features the "Kimchi Premium"—crypto assets trading 3-4% higher than global prices due to capital controls—and dramatic listing effects where new Upbit listings can pump 100-200% or more. Kim noted demographics ranging from mid-age women discussing XRP at cafes to young traders coordinating through hundreds of KOL-led Telegram groups. The in-person meetup culture is also distinctive, with protocols hosting lavish events to collect wallet addresses for targeted airdrops.

What lessons can founders learn from Fragmetric's TGE experience?

Kim acknowledged that generous airdrop allocations, while successfully compensating contributors, contributed to post-TGE price declines as TVL dropped from $330 million to $140 million. His advice for pre-TGE founders is to "consider really well about how your token price action will go." The current market favors major assets over small altcoins, making any TGE timing challenging. Kim noted that maintaining momentum post-TGE is extremely difficult without the prospect of future airdrops, requiring continuous product launches and creative community engagement to sustain interest.

How can DATs generate yield to exceed Solana's inflation rate?

Kim outlined DeFi Dev Corp's strategy as a template: launch an LST through Sanctum, restake it with Fragmetric to receive FragSOL, convert to PT FragSOL for 10% fixed yield through yield tokenization, then lend on Kamino to generate 11-12% total annual yield. This exceeds Solana's roughly 7% staking yield and helps DATs deliver positive real returns to shareholders. As more than ten Solana DATs compete for retail investor attention, Kim argues that yield generation will become the primary differentiator, driving capital into DeFi protocols across the ecosystem.

What new products is Fragmetric developing beyond FragSOL?

Fragmetric is expanding beyond Jito restaking with FragBTC and FragUSD products that leverage DeFi yields rather than restaking. FragBTC will abstract complex JLP yield strategies that require hedging, allowing users to simply deposit BTC and receive optimized yields. FragUSD will provide optimized stablecoin yields by deploying across DeFi opportunities. Both products issue receipt tokens that can be further utilized in yield tokenization protocols or lending markets, maintaining the composability that defines Fragmetric's approach. FragUSD is expected to launch before the end of 2025.