Wasabi Protocol on The Defi Drop Podcast

Transcript Highlights

Edward:
There are plenty of perps on the block, but Wasabi certainly stands out with its concept of native yield. How does Wasabi embody this?

Eren:
At Wasabi, we’re very different from a typical perp exchange. All of our volume settles on-chain — there’s no order book. Instead, we use a margin backend, which is essentially a lending instrument rather than a perp instrument.

This lets us provide yield across a broad range of assets, from majors to long-tail tokens like meme coins and AI agents. For example, ETH earns ~6% APY, USDC earns ~11% APY, and Solana earns ~10% APY — simply by being on Wasabi. You get paid to participate.

Rapid Growth and Adoption

Edward:
You’ve grown to $32.4M in TVL and $1.27B in all-time volume. Where were you a year ago, and what’s been driving this adoption?

Eren:
The bull market helps, but the real driver is our unique backend. We can list trending, lower market-cap assets faster than centralized exchanges or other perp platforms. Combine that with native yield, and we’ve created a strong growth loop: more users mean more deposits, which unlocks leverage, which attracts more trading, and the cycle keeps reinforcing itself.

Two Types of Users, One Marketplace

Edward:
Wasabi offers leveraged trading and yield-generating vaults. How do these features complement each other for your users?

Eren:
We designed Wasabi as a two-sided marketplace. On one side, yield seekers — whales who want to earn without impermanent loss, essentially “being the house.” On the other, speculators — traders looking for big upside.

Speculators trade with leverage via liquidatable loans, while yield seekers provide the capital. The system ensures both groups benefit, with protections like liquidations and over-collateralization keeping LPs safe.

Tackling On-Chain Leverage

Edward:
You’re operating in an underrepresented space: on-chain leverage trading. What unique challenges do you face?

Eren:
Risk management is our biggest focus. With so many new tokens launching, we carefully identify which assets we can support safely. Our risk engine has been key to our success — we’ve processed over $1.27B in volume without major issues.

Rethinking Liquidity Provision

Edward:
Most DEXs require paired liquidity provision. Wasabi allows single-asset deposits. How does that work?

Eren:
Unlike AMMs, we don’t require double-sided deposits or index tokens. We settle on existing on-chain liquidity — Uniswap, Aerodrome, Jupiter, etc. Users just deposit the asset they believe in, whether ETH, SOL, or even niche tokens, and earn real yield on it without impermanent loss. Importantly, our APYs are denominated in the deposited token (e.g., 11% in USDC on USDC).

Points and Rewards

Edward:
Your points program has been getting attention. Can you share what it might mean?

Eren:
While I can’t reveal too much, we’re building Wasabi Points to reward early supporters in meaningful ways. Most points systems end up the same; we’re exploring unique approaches to bring more value back to our community.

Risk and Security

Edward:
What advice would you give to new users trading leverage on Wasabi?

Eren:
Trade carefully. Use stop losses and take-profit orders, don’t over-leverage, and always watch your liquidation levels. Leverage can amplify returns, but also risks.

Edward:
And security?

Eren:
Our vaults use the ERC-4626 standard and are non-custodial. Every loan is over-collateralized, with liquidations and an insurance fund protecting LPs. Security is a top priority.

The Future of DeFi

Edward:
What developments in DeFi do you think will have the biggest impact in the next year?

Eren:
AI agents. They’ll simplify crypto for less technical users, handling tasks like yield optimization and trade execution. I believe crypto will have its own “ChatGPT moment,” making DeFi more accessible and user-friendly.

The Prediction Ladder

Each episode, we ask our guests to predict DeFi’s total TVL (per DeFiLlama) on December 31, 2025.

Edward:
What’s your prediction?

Eren:
At least double today’s number. I think we’ll see ~$314B in TVL, especially with Bitcoin DeFi emerging.

Closing Thoughts

Edward:
Thanks for joining us, Eren. Wasabi is doing incredible work, and we look forward to seeing how it grows — and integrating these strategies into Portals Explorer.

Eren:
Thanks so much for having me. Excited for what’s ahead with Portals as well.

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