🥛 Forget SOL, the real gains are here 💰

GM. This is Milk Road, the ‘truffle pig’ of crypto newsletters – we sniff out insights and opportunities, so you can become a better investor!

Here’s what we got for you today:

✍️ Top 3 $SOL DAT beta plays
✍️ Aave enters a $29T market
🎙️ The Milk Road Show: The Biggest Capital Wave in Crypto History Is Happening Right Now w/ Andrew Forson
🍪 Onchain governance? Nah, onchain government

Milk Road Swap is a DEX that makes trading crypto simple, cheap and fun. Trade on Milk Road Swap now.

Prices as of 2:00 PM ET. Click here for our Fear & Greed Index.

TOP 3 SOLANA DAT BETA PLAYS 🥇

Just yesterday we wrote an article about a potential Solana breakout – and in it, we listed three catalysts to watch for.

Including, but not limited to:

“Public Solana treasury announcements from major players (in the $1B+ range)”

Well – consider that box ticked:

Source: @MilkRoadDaily

So far, Solana is showing strength compared to the rest of the market over the past 7 days – and these announcements are likely a contributing factor.

…but what if you want exposure to this momentum outside of just holding $SOL and/or buying these public Digital Asset Treasuries (DATs) when they launch?

That’s what trading nerds call ‘beta plays’ – in this case, they’re smaller, more volatile assets that will likely be affected by these DATs, but offer (potentially) greater returns.

And that’s what we’re covering today.

ICYMI: the new DAT playbook goes something like:

A company buys a bunch of tokens (in this case, $SOL) → they stake them/lend them out → they earn yield on their holdings → repeat.

Which means Solana-based staking and lending platforms are likely going to benefit from this new wave of treasuries.

And from that – we get our beta plays:

1/ Jito ($JTO)

Jito ($JTO) is the largest liquid staking protocol on Solana.

Liquid staking is a way of staking your Solana, without locking it up and losing the ability to use it across other DeFi products.

(You swap your $SOL into $JitoSOL → that $JitoSOL goes up in line with Solana’s staking rewards, and can also be used to trade/use DeFi.)

👉 The beta play token here is $JTO, and you can buy it on Milk Road Swap – here!

Source: CoinGecko

2/ Kamino ($KMNO)

Kamino is the biggest dog in the yard when it comes to Solana lending.

…but lending markets on Solana are still tiny compared to Ethereum.

$KMNO has a $148M market cap, with a fully diluted valuation (FDV) of $558M.

If these Solana DATs can add new momentum/growth to the lending sector on Solana, it could have an outsized effect on Kamino.

(E.g. Adding a measly $150M to its market cap would double the token’s value.)

👉 You can buy $KMNO on Milk Road Swap, here!

Source: CoinGecko

3/ Jupiter ($JUP)

Oh, you want to get exposure to Solana liquid staking and lending from a single asset?

Man, your timing is impeccable.

Just yesterday, Jupiter announced the launch of its lending platform – adding to an already stacked product lineup, including:

Liquid staking, decentralized exchange, and launchpad.

👉 You can buy $JUP on Milk Road Swap, here!

Source: CoinGecko

See the potential magic here?

All of the tokens listed above are leaders in the space, but are only valued between ~150M and $1.5B right now.

Which means the $3B worth of $SOL that these DATs are planning to buy/stake/lend could have an outsized effect on them.

Lemme drive it home with an example…

Say the new narrative/momentum created by these DATs was to add $1B to Solana, Jupiter, Jito, and Kamino, respectively.

That would lead to a:

0.88% gain in Solana’s price
64% gain in Jupiter’s price
135% gain in Jito’s price
675% gain in Kamino’s price

That’s the power of beta plays.

But be warned – with higher potential reward, comes higher potential risk.

So keep your wits about you!

THIS DEX SOLVES AN ACTUAL PROBLEM

You’ve probably used Uniswap for Ethereum (ERC-20) tokens.

…and you’ve likely used Raydium for Solana tokens.

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Stop fumbling though onchain trading and try Milk Road Swap now.

TREASURY LENDING JUST CAME TO AAVE 🏛️

You know what?

While we’re on the topic of lending…

Let’s talk about Aave’s latest announcement and why it’s a positive step forward for crypto, even though it feels kinda corpo. 👇

Source: @RMac_5

First, lemme just say:

@RMac_5, I feel you. These kinds of developments can seem weird at first glance.

(Blockchain technology was meant to destroy the Sith, not join them.)

But here’s why these kinds of lending markets are a net-good for crypto:

The US treasury market is currently worth ~$29 trillion (roughly 8x the size of the crypto market).

And when TradFi players use their treasury holdings as a down payment to take out a loan – it’s known as a ‘security-backed loan’.

Last year, the global securities-backed lending market reached USD $540.2B.

(That’s roughly equivalent to the total market cap of Ethereum today.)

What’s cool is, security-backed lending tends to be sticky – meaning once you’ve sent your treasuries to a custodian that offers lending services, you’re less likely to move them.

What’s even cooler: that stickiness will likely be mirrored in onchain security-backed lending.

‘Cause once you’ve moved your treasury allocations onchain – moving them back to TradFi rails is going to lead to two things:

Friction and taxes.

(Two things humans like to avoid.)

So yeah, “Wall Street w/ DeFi rails slapped on top” is accurate.

But “DeFi eating into TradFi’s super sticky, half a trillion dollar security-backed lending market” is also accurate. 😉

More ways for TradFi to use their treasury holdings onchain = more of the $29T US treasury market being tokenized = number go up.

I, for one, welcome our new overlords.

BITE-SIZED COOKIES FOR THE ROAD 🍪

We’ve just added a new event to our conference page: European Blockchain Week. Use code “MiLkROADebc” for a 20% discount on tickets.

Good news! PCE inflation data just came in flat, increasing the likelihood of a September rate cut.

The buybacks continue… PumpFun has bought $15M of its own token over the past two weeks.

Onchain governance? Nah, onchain government. The US Commerce Dept. just started logging GDP data on multiple networks (Bitcoin, Ethereum and Solana).

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