Wintermute EthCC Observations: DeFi Shifts Entirely to Vault Track, Founders No Longer Rush to Issue Tokens

marsbitОпубліковано о 2026-04-08Востаннє оновлено о 2026-04-08

Анотація

Wintermute Ventures investment manager Joscha Kupferberg attended EthCC in Cannes and shared key observations: VCs are more cautious but still investing, founders are prioritizing token launches and focusing on product development first, and DeFi builders are heavily shifting toward the Vault sector. Other trends include the rise of on-chain forex, privacy-focused DeFi, and prediction markets. Neobanking features are becoming standard rather than differentiators, and most crypto AI applications have reverted to trading bots. The overall atmosphere was positive, with fewer hype-driven projects and more substantive development.

Author: Wintermute Ventures

Compiled by: Deep Tide TechFlow

Deep Tide Introduction: Wintermute Ventures investment manager Joscha Kupferberg attended the EthCC conference in Cannes and brought back firsthand observations: VCs are more cautious but still investing, founders generally are not rushing to issue tokens but focus on building products first, DeFi builders are collectively flocking to the Vault track, neobanking features are becoming standard rather than a differentiator, and AI Agent applications in the crypto space have almost entirely retreated to trading bots.

@wmt_ventures tweet:

What are crypto builders actually doing now?

"Vaults are the new Perps." This was a phrase heard repeatedly at the EthCC conference in Cannes. The conference reflected a broader industry shift: less noise, more institutional presence, founders working quietly rather than chasing release schedules. Our investment manager @joschakup spent a full week immersed in these conversations. Here are his observations.

EthCC Atmosphere

Contrary to some pessimistic views, the overall atmosphere was positive. A healthy mix of early builders, VCs, and active family offices was present. The only obvious shadow was layoffs—still happening widely and realistically across the industry.

How Crypto VCs Are Investing Now

VCs are more cautious but still active. The focus has shifted to later seed rounds and beyond, where there is traction and product-market fit to evaluate. The era of placing moonshot bets purely on vibes appears to be over.

Founders No Longer Chase Token Issuance

The vast majority of early founders Joscha spoke with did not prioritize token issuance. The focus is on building an economically viable product first. Token optionality is a topic for later—if at all.

Themes Worth Tracking

Several heating trends:

On-chain foreign exchange is quietly becoming a serious topic
Privacy-oriented DeFi is emerging as a legitimate track, with more projects exploring institutional-grade use cases
Prediction markets are gaining substantial traction, with increasing competition in liquidity infrastructure and incentive design

Vaults Are the New Perps

DeFi builders are working hard, increasingly focusing on institutional use cases and RWA. If there is one unavoidable theme, it's Vaults. From Vault infrastructure and yield products to rehypothecation, strategy discoverers, and ratings, the entire track has highly converged on this category, closely followed by stablecoins and neobanking.

Neobanking Is No Longer a Differentiator

Many DeFi projects with significant TVL are integrating third-party services to provide neobanking features: on/off ramps, cards, yield vaults. This is a reasonable approach for user retention, but the logical conclusion is: neobanking alone is no longer a differentiator.

AI Agents Have Almost Entirely Retreated to Trading Bots

Most AI Agent use cases in crypto seem to have made a 180-degree turn back to trading bots. Joscha had hoped to bring back some new ideas, but did not. This is currently the only area that hasn't surprised him.

Пов'язані питання

QWhat was the overall atmosphere at EthCC according to Wintermute Ventures?

AThe overall atmosphere was positive, with a healthy mix of early builders, VCs, and active family offices, though the shadow of widespread industry layoffs was still present.

QHow has the investment strategy of crypto VCs changed recently?

AVCs have become more cautious but remain active, shifting their focus towards later seed rounds and beyond where traction and product-market fit can be evaluated, moving away from moonshot bets based purely on vibes.

QWhat is the current trend among founders regarding token launches?

AMost early-stage founders are not prioritizing token launches; instead, they are focusing first on building economically viable products, with token issuance being an optional consideration for the future.

QWhat is the dominant theme in DeFi that the article highlights?

AThe dominant theme in DeFi is the collective shift towards the Vault sector, encompassing Vault infrastructure, yield products, rehypothecation, strategy discoverers, and ratings, followed by stablecoins and neobanking features.

QWhat observation did the article make about AI Agent applications in crypto?

AMost AI Agent use cases in crypto have reverted to trading bots, with no significant new ideas or surprises emerging in this area during EthCC.

Пов'язані матеріали

The Value Distribution of Stablecoins

**Summary: The Value Distribution of Stablecoins** The article argues that stablecoins are evolving from mere trading tools into broader channels for dollar access. It divides the stablecoin ecosystem into four layers to analyze how value is distributed: 1. **Issuance Layer:** Mints stablecoins, holds reserve assets, and captures the spread between reserve yield and user costs (e.g., Tether, Circle). This layer currently earns the largest profit margin. 2. **Infrastructure Layer:** Connects stablecoins to the traditional financial system, handling fiat on/off-ramps, banking integration, compliance (KYC/AML), and asset management (e.g., Bridge, BVNK). This is the "unglamorous" but critical work, building the essential bridges between crypto and real-world finance. 3. **Acquiring/Distribution Layer:** Integrates stablecoins into merchant systems, manages payment flows, and provides enterprise financial software (e.g., Stripe, Coinbase). They act as the access point for businesses. 4. **Application Layer:** The end-users and businesses that ultimately use stablecoins for payments, settlements, or as a store of value. They benefit from convenience but have little pricing power. The core thesis is that while the issuance layer currently dominates profits, the often-overlooked **infrastructure layer holds significant long-term potential**. The real challenge and barrier to mass adoption is not the on-chain transfer of stablecoins (which is simple), but the complex "last mile" integration into existing business workflows, banking systems, and regulatory frameworks across different countries. Companies in this layer are currently in a "land grab" phase, investing heavily to build networks, secure bank partnerships, and establish compliance pathways. While their position is currently pressured by the profitable issuers above and distribution platforms below, the article suggests that if stablecoins become a default financial rail for businesses, the infrastructure providers who have done the hard work of integration will ultimately gain strong pricing power and become entrenched, essential players.

marsbit1 год тому

The Value Distribution of Stablecoins

The Value Distribution of Stablecoins The article argues that stablecoins are evolving from a mere trading tool into a broad "dollar channel." It analyzes the industry's value chain through four layers: 1. **Issuance Layer (e.g., Tether, Circle):** The top layer that mints stablecoins, holds reserve assets, and captures the thickest interest rate spread. 2. **Infrastructure Layer (e.g., Bridge, BVNK):** Connects stablecoins to the traditional financial system, handling critical but complex "dirty work" like fiat on/off-ramps, banking integration, compliance (KYC/AML), and cross-border settlement. 3. **Acquiring/Distribution Layer (e.g., Stripe, Coinbase):** Embeds stablecoins into merchant systems, manages payment flows, and integrates with enterprise software. 4. **Application Layer:** End-users and businesses that ultimately use stablecoins for payments, settlement, or storing value. The author posits that while the issuance layer currently captures the most profit, the most overlooked and potentially critical layer is infrastructure. The core challenge for stablecoin adoption isn't the on-chain transfer (which is simple), but bridging the gap between blockchain and the real-world financial system. This involves solving practical problems for businesses: fiat conversion, reconciliation, tax handling, and user onboarding. Infrastructure companies are currently in a difficult "land-grab" phase—building networks, securing banking relationships, and achieving compliance country-by-country. They face pressure from both the profitable issuance layer above and distribution platforms below. However, the author suggests this layer is building a crucial moat. Once stablecoins become a default business rail, the infrastructure players who have done the hard work of integration may gain significant, durable value and pricing power.

链捕手2 год тому

Why Is Nvidia Borrowing $20 Billion When It's Not Short of Cash?

Nvidia's recent announcement to issue at least $20 billion in senior notes, despite holding a strong cash position with over $48.6 billion in free cash flow last quarter, is not a sign of financial need. Instead, it represents a strategic move to leverage its high credit rating (recently upgraded to AA by S&P) to secure low-cost, long-term debt. This capital will support long-term AI infrastructure investments, data centers, R&D, supply chain prepayments, and strategic investments, while allowing the company to continue aggressive shareholder returns through stock buybacks and dividends. The decision reflects a mature capital management strategy: using debt to finance long-term growth assets is more efficient and less dilutive to shareholders than equity financing. It signals that Nvidia, like other tech giants (Alphabet, Meta, Amazon), is entering a new phase of heavy AI capital expenditure, shifting from a pure growth story to a story about capital allocation, credit strength, and long-term ecosystem positioning. The key question for investors is whether Nvidia can maintain its high cash flow generation and ensure that returns from these AI investments justify the cost of capital over the long term. The bond issuance amplifies its expansion capabilities but also ties its valuation more closely to the broader AI investment cycle's sustainability and profitability.

marsbit2 год тому

Why Is Nvidia Borrowing $20 Billion When It's Not Short of Cash?

marsbit2 год тому

Liberland Fires Tech Secretary After Alleged Blockchain And Website Takeover Attempt

Liberland's congress has voted to remove Technology Secretary Dorian Stern Vukotić, following a resolution accusing him of attempting to hijack the Liberland.org domain, removing administrative multisig protections, blocking the president from voting, and launching unauthorized tokens. The incident serves as a case study in blockchain governance, highlighting risks that go beyond smart contracts to include control over domains, admin keys, and off-chain authority. For the crypto industry, it underscores the need to scrutinize decentralization claims against operational realities, where a small group can still compromise governance. The story reflects a broader market shift where infrastructure security and governance are becoming as critical as price action. Editorial framing should treat the development as a verified information signal about governance risks, avoiding overstatement of Liberland's legal status and leaving room for follow-up evidence.

bitcoinist3 год тому

Liberland Fires Tech Secretary After Alleged Blockchain And Website Takeover Attempt

bitcoinist3 год тому

How to Do Research Well: Deliberately Practice the Real Skills That Matter

No one truly teaches you how to do research. You're often given a desk, a pre-selected problem, and vague instructions to "create something new." Consequently, many people reverse-engineer the job based on visible outputs—papers, posts, announcements—learning only how to *appear* like a researcher rather than how to *become* one. True research capability is built from stacking small, trainable skills, nearly all of which can be developed through deliberate practice. **Pick Your Own Problem:** Most researchers absorb problems from advisors or trends, lacking the underlying reasoning. Choosing a problem you genuinely care about, as John Schulman advises, leads to original work. Develop "taste" like a muscle: predict experiment outcomes, guess paper results from methods, and track which findings remain important over time. **Upgrade Your Inputs:** Relying on shared reading lists (arXiv hot lists, filtered group chats) leads to unoriginal conclusions. Undervalued old literature often holds crucial insights (e.g., MoE, LSTM, backpropagation). Richard Sutton's "The Bitter Lesson" or Claude Shannon's 1952 talk on creative thinking are more predictive than lengthy modern surveys. Breadth matters as much as depth: draw from neuroscience, mechanism design, hardware knowledge, and honest statistics. Read papers directly, especially appendices and limitations sections. **Write Everything Down:** As Paul Graham noted, writing exposes flaws in seemingly mature ideas. Writing is the cheapest defense against self-deception. Following Feynman's principle, Darwin programmatically wrote down facts contradicting his theory to combat memory bias. Maintain a detailed log of hypotheses, setups, predictions, results, and updated understandings. Reviewing past logs fosters essential humility.

marsbit4 год тому

How to Do Research Well: Deliberately Practice the Real Skills That Matter

marsbit4 год тому

Торгівля

Спот

Ф'ючерси