Okay so now I’ve started tracking lending markets on @arbitrum :) and one number stood out: utilization consistently pushing 85–90%. That might sound like a small detail, but it’s actually one of the clearest signals of pmf in Defi. ● What utilization actually means TVL gets all the headlines but like i’ve always said, tvl can be mercenary; it leaves as fast as it arrives. utilization is different, it tells you whether liquidity is actually being used. - Below 50%: liquidity is idle, demand is weak. - Between 50–80%: healthy balance. - Cross 80%+: sticky demand. Capital isn’t just parking; it’s working. That last category is rare and when pools hold that range without emissions, it’s no longer a farm, it’s infrastructure. ● What i found on @arbitrum Looking through the numbers, a pattern emerged: ➢ @aave v3: $wETH is running at 89% utilization, $USDC at 83%, $USDT0 at 83%. ➢ @compound v3: $USDT and $USDC are both at 91%, $wETH at 88%. ➢ @dolomite_io: $USDC sits at 79%, $wETH at 67%. ➢ @silofinance v2: $USDC pools around 75%, $wETH pool at 73%. That’s hundreds of millions in liquidity consistently borrowed out. not for incentives, but because traders, lps, and structured products need it. ● Why this feels like a turning point When lenders keep depositing at scale, and borrowers still push utilization into the 80–90% band, it tells me two things: ➤ liquidity isn’t idle anymore, it’s circulating through perps, vaults, and strategies that are now default routes for capital. ➤ capital is sticky i.e people aren’t showing up for 20% apys, they’re staying because this is where liquidity lives. that’s the line where lending stops being an “app” and starts becoming financial infrastructure. ● What i’m watching next I want to see if these pools can: - Hold 85–90% utilization through volatility. - Extend the same pattern to new collateral types (LRTs, RWAs). - Turn high utilization into sustainable fees (not just volume). If they do, then @arbitrum won’t just have growth, it’ll have liquidity rails that lock the chain into place. ● My take For me, utilization above 90% isn’t just a metric. It’s a verdict from the market. And the verdict on @arbitrum is clear: Aave, Compound, Dolomite, and Silo aren’t yield farms anymore; they’re becoming the backbone of the system. My tools /@DefiLlama / aavescan

Tagging some DeFi chads so you don’t miss out on anything related @0xAndrewMoh, @eli5_defi, @Mars_DeFi, @crypto_linn, @arndxt_xo, @TheDeFiKenshin, @Hercules_Defi, @cryptorinweb3, @_SmokinTed, @St1t3h, @thelearningpill, @Nick_Researcher, @0xAmin7, @0xCheeezzyyyy, @yashasedu, @RubiksWeb3hub, @monosarin, @Defi_Warhol, @rektonomist_, @twindoges, @0xfreestyler.