HyperEVM is the new kid on the block, an advanced DeFi ecosystem brimming with potential. At the moment, Hyperswap reigns supreme with a TVL of $57 million versus Kittenswap’s $32 million. Based on those numbers, you’d assume this race is over before it’s even started. Here’s what they’re getting wrong—and why they need to change their tune.

TVL Isn't Everything, Right?

We're all guilty of chasing TVL. It’s the new shiny object, the instant dopamine fix. In the long, harsh insanity of DeFi, TVL is an illusion. It's alignment that wins.

Think about it. Ever seen a protocol with billions of TVL just crash to zero? Usually, it’s because of misaligned incentives and bad governance, as well as a failure to build that community buy-in. Too many to count, I bet.

Peek at Aerodrome on Base, Shadow on Sonic, Trader Joe on Avalanche, PancakeSwap on BNB. They aren't always the biggest in terms of TVL, but they've built thriving ecosystems because they nailed the alignment piece. They realized that a deeply loyal, fiercely-engaged community is far more valuable than the fickle, short-term mercenary capital.

Consider Aerodrome. Other DEXs on Base might have momentarily overtaken Aerodrome in Total Value Locked (TVL). Aerodrome’s unique veTokenomics and focus on incentivizing long-term participation has cemented its place at the heart of the Base DeFi narrative. Innovative and community-oriented Trader Joe’s continues to make waves in the grocery retail space. This strategy has allowed it to stay the most active project on Avalanche.

Kittenswap's Secret Weapon? ve(3,3)

Kittenswap is playing a better game, and that’s the game I believe they can win. Their strategy is focused on the ve(3,3) design, which was popularized by Curve Finance. For those that don’t know, this new model pretty much locks your tokens up in order to get more voting power and extra rewards.

Because it incentivizes long-term commitment. That’s because it straightens out the misalignment between the protocol, its users and its token holders. Together, it constitutes a potent flywheel effect. As the ecosystem gets deeper in sync with each other, it becomes even more attractive to new protocols and liquidity.

It’s the difference between constructing a cathedral and a pop-up store. Hyperswap is that cool, colorful, and creative pop-up shop everyone’s raving about right now. In the meantime, Kittenswap is laying the groundwork for having a more permanent legacy.

Don't underestimate the power of HL-style tokenomics. And with permissionless spot markets, Hyperliquid has led the way in innovation and experimentation. Remember HyperUnit? They rode this wave, did incredible volume, and even released $FARTCOIN. (Yes, really.)

HL-Style Tokenomics: The Hyperliquid Advantage

Kittenswap can leverage this same neutrality. Ultimately, through the adoption of HL-style tokenomics, they will be able to attract a greater quantity and diversity of projects and liquidity to the HyperEVM ecosystem. It’s a clear and positive signal to the market that Kittenswap is now open for business, willing, and able to support innovative and experimental projects.

This neutrality is key. Most people consider Hyperswap to be the de facto “official” DEX of HyperEVM. Unlike these alternatives, Kittenswap has the ability to distinguish itself as a decentralized, community-driven alternative. This is music to the ears of a significant part of the crypto community that worships at the altar of freedom and permissionlessness.

The upcoming $KITTEN Token Generation Event (TGE) is a pivotal time. It's the opportunity to inject new energy into the HyperEVM ecosystem and to solidify Kittenswap's position as a leading DEX.

The $KITTEN TGE: A Catalyst for Growth

If Kittenswap are able to pull off the $KITTEN TGE flawlessly, that would be perhaps the biggest potential catalyst for growth. It’s an opportunity to onboard new users, attract more liquidity and deepen the alignment of the ecosystem.

Let's be real. Investing in early-stage DeFi protocols is risky. You could lose your shirt. Since the HyperEVM is quite new, Kittenswap being a new but great project. There are no guarantees.

  • Fair distribution: Ensuring a broad distribution of tokens to prevent centralization.
  • Clear utility: Defining the use cases for the $KITTEN token and how it benefits users.
  • Engaging community: Building a strong and active community around the project.

Yet that’s where the asymmetric opportunity is. The potential payoff is huge I think if you do your research and understand the risks involved, the upside is tremendous. Seize the moment and take an informed wager!

Risks? Absolutely. But...

Don't write off Kittenswap. Hyperswap is the clear front-runner at this point in the race. Kittenswap has a ve(3,3) design, HL-style tokenomics, and focus on alignments that puts it at an advantage to go the long trip.

Do your own research. Look beyond the TVL numbers. Be smart about the tokenomics, the governance structure, and the dynamics of the community. Determine for yourself if Kittenswap has what it takes to come out on top in this race.

My Takeaway?

And this is why I, for one, am betting on the kittens. Because in the wild west world of DeFi, you never know when the underdog will have the claws that cut the deepest. And alignment, my friends, is the toothiest talon of them all.

Do your own research. Look beyond the TVL numbers. Understand the underlying tokenomics, the governance structure, and the community dynamics. Decide for yourself if Kittenswap has what it takes to win this race.

I, for one, am betting on the kittens. Because in the wild world of DeFi, sometimes the underdog has the sharpest claws. And alignment, my friends, is the sharpest claw of them all.