According to @cas_abbe, a once-popular ETH DeFi looping trade has ended (source: @cas_abbe). The strategy staked ETH on Lido to receive stETH, used stETH as collateral on Aave to borrow ETH, restaked the borrowed ETH, and repeated to amplify yield, functioning as effectively free money while borrowing was cheap (source: @cas_abbe).

According to PolynomialFi on Twitter, the Week 1 Optimism (OP) reward program has gone live, allowing users to earn OP rewards simply by depositing wETH, weETH, wstETH, or SolvBTC without any trading activity (source: @PolynomialFi, May 20, 2025). Participants benefit from an approximate 10% APR on their ETH and BTC tokens, with the potential for additional multipliers. This low-barrier entry and guaranteed yield are expected to drive increased deposit activity and liquidity in the Optimism ecosystem, potentially impacting OP token price and related DeFi markets. Thirteen weeks remain in the program, providing ongoing opportunities for yield-seeking crypto investors.