In this report:

1. Strategy’s Bitcoin Sale: Narrative Shift and Its Impact on Basis

2. Trade Compression & Funding Carry Disruption

3. The rsETH/KelpDAO Incident: Major DeFi Exploit to Full Resolution

4. Rise of Tokenized RWAs and Equities

Q2 Crypto Lending Markets

March–May marked a period of consolidation and cautious recovery with continuous volatility from crypto’s worst Q1, with Bitcoin bottoming near $63k in late February before staging a two-month climb to approximately $78k by month-end April, a +23% recovery from cycle lows. In early May, it further rebounded to trade in a roughly $73k-$82k range, although prices pulled back afterwards. Ethereum lagged considerably with the price only recovering to around $2.4k entering April…