Regarding the US stock meme, BlockBeats has discussed it a lot and predicted early on that this narrative would have significant potential:

"US Stock Meme: Robinhood Chain Finally Finds Its Own Grand Narrative"

At the same time, we have also been thinking about the development direction of the US stock meme. Just as in the past with the AI meme craze, starting with trading AI memes like $GOAT and then moving on to ElizaOS-like AI frameworks, the US stock meme may only be the first form of on-chain tokenized stock speculation.

There have already been some plays, such as applying the Pokémon on-chain card drawing gameplay to tokenized stocks, where opening a US stock card pack may yield higher-value tokenized stock assets. Alternatively, holding a certain asset (token or NFT) and using the fee income to buy tokenized stocks, airdropped to holders.

These plays are somewhat meaningful but have not yet fully explored the imaginative space of on-chain US stocks in terms of composability. The basic logic to say this is that using meme coins to drive on-chain US stock trading volume is interesting and has not yet reached its ideal limit. However, the ultimate goal of bringing stocks onto the chain is to make stock assets on the chain a truly global asset, capable of capturing users from around the world to trade US stocks on-chain 24/7.

A new form of stock trading where each chain effectively becomes a new stock trading platform is the ultimate jackpot. When looking at this ultimate goal, the current DeFi infrastructure for stocks or RWA assets on various chains is still very inadequate.

NetNet's $NET skyrocketing has shown us some signs of a rising trend in Robinhood on-chain, RWAfi.

NetNet: The Rebirth of OHM on Robinhood

Now, mentioning OlympusDAO, the star project from the DeFi Summer era, might make many people unfamiliar. So, instead of saying it is a project that copied the OlympusDAO v1 architecture, let's start from scratch and explain what this project is all about.

Let's directly look at the data statistics on the NetNet official website:

The Market Price corresponds to the current price of $NET, with one $NET priced at approximately $1030.

The NAV corresponds to the asset backing value per $NET, meaning that for one $NET valued at around $1030, the actual asset backing is about $60.

Looking further down, the two additional data points are the premium multiple of each $NET and the total asset reserves in the treasury, which is around $3.35 million.

This is the starting point to understand the entire NetNet mechanism—why would anyone be willing to pay a premium of up to 17 times to purchase $NET?

The reason is simple: people believe that NetNet's treasury can earn more money. In fact, this premium is a down payment on the future.

NetNet's revenue generation includes:

- USDG Yield. Placing some idle cash into the on-chain lending market Morpho to earn interest, with up to 70% of the treasury's USDG deployable and at least 30% reserved for liquidity, and the income goes to the treasury.

- $NET Transaction Fee. A 5% fee is charged for both buys and sells, and after being listed for 30 days, the full 5% transaction fee goes into the treasury, with a portion allocated for project operating expenses within the first 30 days.

Of course, there are many other products as well, but for various reasons, they are currently not included in the NAV, which we will explore later.

Therefore, the value proposition of $NET is opposite to that of many project tokens. For example, the token of Pons launched on the Robinhood Launchpad is designed to prove its real-time revenue-generating ability and market share. In contrast, $NET is a bet that the treasury behind the project will grow larger.

Furthermore, NetNet will regulate these expectations. If $NET faces panic selling or extreme market conditions resulting in a particularly low NAV, the protocol will buy back and burn $NET. If $NET surges irrationally, causing an exceptionally high NAV, the protocol will mint more $NET and sell them to the market to increase the treasury's USDG reserves.

Holders can stake $NET to receive $sNET, with $sNET allocated periodically according to specific rules every 8 hours. This staking reward fluctuates based on the NAV; the higher the premium of $NET relative to NAV, the more new $NET will be distributed. If the market price is lower than or equal to the NAV, no new issuance will occur to prevent further value dilution.

Due to the existence of this staking mechanism, NetNet's feedback loop will be amplified. If the staking rate is high and the circulating supply of $NET is low, the price will rise quickly. Conversely, if the revenue falls below expectations and market sentiment turns bearish, an unstaking cascade can also occur rapidly.

Beyond this core mechanic, its relationship with US stock assets introduces several other play-to-earn mechanisms:

- Real World Bonds. Users can purchase $NET at a discount and receive the purchased $NET linearly within 2 days, while the project uses the money to buy US stocks. This discount is approximately 11.2% off the $NET market price, with the ideal scenario being that $NET appreciates during these 2 days while the stock price depreciates.

- SpaceX Invaders/MSFT Flight Simulator: Essentially, these are probability games that can be played like arcade games, with wagers and rewards in $SPCX/$MSFT (initiated with USDG that will automatically be used to purchase the corresponding US stock). There are also TURBO and TURBO BLACKJACK, which follow a similar principle, offering tokenized US stocks as bets and rewards in engaging mini-games.

These activities are not factored into the Net Asset Value (NAV) because the US stock assets are currently held independently by the team, not in a permissionless treasury, and there is no automatic or contractual path to use stock value for $NET buybacks, redemptions, or to support the floor price. These rules are not hardcoded and do not execute automatically; they depend on the team's intentions and actual plans, so these revenues are unrelated to NAV.

This coin has recently experienced significant price appreciation, primarily due to a direct shoutout from Ansem. Fundamentally, this project falls into the category of an "optimized version of OHM + a US stock gambling/gaming platform." You might think that the mentioned US stock gambling mechanisms at the beginning of this article are not that different. Indeed, many of the current narratives are more a result of the price surge, such as the idea of "not trading US stocks but gamifying them." The key drivers are still a balancing act between a left-foot-right-foot flywheel mechanism and celebrity endorsements, rather than significant innovation in US stock DeFi.

Thus, let's take a look at another new project, Down to Finance, whose price performance is far from that of NetNet. This project aligns more closely with our expectations for DeFi mechanisms involving US stock assets.

Down to Finance: Building Your Own OlympusDAO with Any Asset

This project's mechanism is quite complex. Many discussions label it as a "decentralized index fund launchpad," which is an intuitive but not entirely complete description.

Down to Finance supports bundling various assets into a single strategy token, known as a DETF (Decentralized ETF). The underlying asset composition can include tokenized US stocks, stablecoins, Uniswap V4 LP, Morpho lending positions, and other types of treasuries/assets.

In other words, anyone can launch an index fund on this platform. This index fund not only includes tokenized US stocks but also strategically oriented assets such as Uniswap V4 LP, Morpho lending positions, and treasuries. In simpler terms, your on-chain strategy itself can be treated as an asset to stack up, creating a "you can operate the token you operate the token you operate" kind of nested doll situation.

Each DETF can itself be seen as an OlympusDAO. When we discussed NetNet earlier, its architecture was 1 protocol – 1 treasury – 1 token ($NET) correspondence. On the other hand, Down to Finance transforms this into a 1 protocol (launcher) – countless DETFs (treasuries) – treasuries with their reserves and strategy correspondences.

This is why I see it as a "decentralized OlympusDAO launcher."

The default issuance policy for each DETF is described as follows:

Issue more tokens when the price is significantly above the target price, burn tokens when the price is significantly below the target price. When the price approaches the target, issuance and burning operations are paused. Trading can still be conducted in the Uniswap V4 pool.

This supply adjustment mechanism is akin to the control mechanism in NetNet discussed earlier.

Each "fund" can be bought or sold and provide one-sided liquidity. The protocol automatically mints DETF shares matching the one-sided deposits into the fund reserves. By providing one-sided liquidity, you receive an NFT certificate, and each time a fund issuance event occurs, holding this NFT entitles you to a portion of the issuance.

Of course, the above is still a rather superficial overview. Due to its complexity, let's summarize it in one sentence: "An asset portfolio launcher where each assembled asset (fund) is itself an OlympusDAO," with the protocol's generated revenue used to buy back $DTF.

$NET has Ansem, $DTF has bonkguy. Besides bonkguy's support, Down to Finance's dev is Olympus's original developer @NCyotee, which is a significant point of optimism for many. However, risks exist as the contract is still under audit, and currently, only the frontend is live. Historically, protocols involving hybrid assets are prone to security risks.

However, if all features can be smoothly implemented, I believe this project will have a higher ceiling. As mentioned at the beginning, if the chain can also become a new RWA asset trading platform, the supporting infrastructure needs to keep up. People will trade stocks, buy funds, and explore other high-yield investment strategies.

Only by making RWA assets composable on-chain can the advantages of the chain be fully demonstrated.

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