defi

According to monitoring by Hyperinsight, in the past two hours, Ma Ji Huang Li Cheng has once again rolled over and increased his ETH long position by about 550 units, raising the average entry price and pushing the liquidation price up to $2,220. The current price of ETH is only $47 away from its liquidation line, and the $20.4 million long position has become the closest ten-million-level ETH long to liquidation on the Hyperliquid platform since Ma Ji last fully exposed all funds on March 26, having accumulated a deposit of $1.195 million to the platform.As of the time of writing, the actual funds in the account are only about $850,000. Frequent rolling and trading operations over the past one and a half months have not only failed to accumulate profits but have instead resulted in a net loss of about $345,000. Currently, this address holds a $20.4 million ETH long position and a $4 million BTC long position, with a total unrealized loss of about $500,000.

U.S. Judge Margaret M. Garnett in New York postponed the ruling on Aave's emergency application on Wednesday, which aims to unfreeze $71 million in ETH related to the Kelp DAO hacking incident, and requested both parties to submit supplemental briefs before the hearing on June 5. Aave is attempting to reclaim the $71 million in ETH frozen on Arbitrum to assist in the asset recovery efforts from this hacking incident—Kelp DAO suffered losses of up to $293 million from the hack, making it one of the most severe security incidents in the DeFi space this year.However, the U.S. law firm Gerstein Harrow LLP submitted a restraining order to the court in early May, claiming that its client has rights to the aforementioned funds. Aave then filed an emergency motion to lift the freeze, warning that if the funds are not released in a timely manner, it could lead to user liquidations and potentially impact the entire DeFi market. Judge Garnett noted in her ruling that Aave failed to adequately explain how user funds would incur "compound losses" if the restraining order remained in place. She also acknowledged the complexity of the case, the risks faced by the victims, and requested both parties to provide supplemental statements on six key issues, including: whether the hacking transaction is subject to New York state sanctuary principles, the legal distinctions between fraud and theft and what rights the hacker has over the stolen assets, which laws apply to determine the priority of claims for frozen assets, whether constructive trusts are an appropriate remedy, and whether Aave or Arbitrum can identify individual victims and proportionally return assets. Both parties must submit supplemental briefs by May 22.Meanwhile, the overall compensation work for Kelp DAO is progressing. Kelp and Aave announced on Tuesday that the rsETH held by the hacker has been destroyed on Arbitrum, and approximately $278 million in loss tokens will be restored within the next two weeks through the funds of the Aave Recovery Guardian multi-signature wallet. Once the relevant smart contracts are reactivated, all functions of rsETH will return to normal.

Solana treasury company DeFi Development Corp reported that despite an expanded loss in the first quarter, the per-share holding of SOL increased from 0.0322 to 0.0670 over the past year, a growth of 108%. As of May 13, the company holds approximately 2.2946 million SOL and equivalents.CEO Joseph Onorati stated that the company achieved growth through strategies such as internal staking, operating joint validation nodes in collaboration with Bonk, and deploying over 25% of the treasury on-chain, and believes that the strategy is a starting point rather than a ceiling. The company reported a revenue of $2.66 million in the first quarter, a year-on-year increase of 827%; the net loss was $83.4 million, compared to $778,000 in the same period last year, mainly impacted by the decline in SOL prices.

According to crypto journalist Eleanor Terrett, on the eve of the U.S. Senate Banking Committee's review of the "Clarity Act," committee members submitted over 100 amendments last night. The DeFi advocacy organization @fund_defi characterized some of these amendments as "anti-DeFi amendments," believing they would harm the rights of DeFi technology, users, and developers, and called on supporters to urgently lobby senators to oppose them.It is reported that the aforementioned amendments were jointly proposed by Democratic senators Cortez Masto, Andy Kim, Chris Van Hollen, Warren, and Jack Reed, targeting the core DeFi protection provisions in the bill, including the Blockchain Regulatory Certainty Act (BRCA), non-controlling software developer protections, DeFi front-end protections, tokenization provisions, and proposed expansions of BSA/AML compliance obligations for developers and digital asset businesses.

Aave CEO Stani tweeted that the latest draft of the market structure bill in the United States has been released. This bill can provide strong legal protection for DeFi developers in the U.S., allowing them to confidently build and maintain decentralized protocols without being forced to bear heavy obligations that are only suitable for centralized models. If the U.S. successfully establishes this framework, other regions around the world will follow.Stani emphasized that regulatory clarity is more important for DeFi than yield. The passage of the Clarity Act is expected to bring significant tailwinds to DeFi, similar to what the Genius Act has done for stablecoins.

The on-chain financial application Legend has announced that it will gradually shut down the company and product services. The team stated that Legend initially hoped to make it easier for mainstream users to access DeFi's cross-chain exchange, yield generation, and payment functions through a simpler product interface. Although the product gained a number of real users, the growth scale did not reach the level required for long-term sustainable operation, so shutting down the business is the most appropriate decision for the team and investors.Legend stated that its biggest lesson learned is that mainstream users do not care whether the product is "on-chain"; they are more concerned about yields, faster payment experiences, and greater control over their funds. The team believes that truly successful products do not explain cryptographic technology to users but instead completely hide it behind the experience. According to the announcement, Legend has stopped new user registrations, and existing users must complete fund withdrawals before the application shuts down on July 12. The official team will continue to remind users to withdraw funds via email and notifications over the next 60 days, and will retain relevant documentation pages for a period of time after the shutdown.

Avant posted on platform X that after communicating with multiple stakeholders, partners, and market trust figures, and based on an assessment of market conditions, it has decided to postpone the TGE until mid-September. Avant stated that current DeFi tokens are under significant pressure, and there have been several protocol vulnerability incidents in the field in recent months. Although Avant has maintained growth during this period, it is still indirectly affected by category pressures.Avant indicated that it expects the market to recover and will advance multiple collaborations during this time, continue TVL growth, and expand products. Points accumulation will stop on May 15, and the allocations that users have received are protected, allowing participation in the subsequent TGE. The Avant team will hold a public Space on Thursday at 2 PM Eastern Time.

Coinbase has expanded its on-chain crypto lending product, adding support for Solana (SOL), allowing users to borrow up to $100,000 by collateralizing SOL. This lending service is based on the integration of Coinbase with the DeFi lending protocol Morpho on the Base network, which previously supported collateralized lending for crypto assets like BTC and ETH.Ben Shen, Head of Financial Services and Loyalty Products at Coinbase, stated that the addition of SOL collateral is an important step for Coinbase to become "the best platform for trading and holding Solana," and reflects its strategy to build an "Everything Exchange." Data shows that since the launch of this crypto lending product last year, Coinbase's cumulative loan issuance has exceeded $2.3 billion. Among these, Bitcoin remains the primary collateral asset, with a cumulative loan amount of $2.17 billion; ETH collateralized loans are about $110 million, and XRP is $31.6 million, followed by assets like cbETH, DOGE, ADA, and LTC.Last month, Coinbase also expanded this lending business to the UK market, continuing to advance its on-chain financial services layout. Although Coinbase announced a net loss of $394.1 million in the first quarter last week and laid off about 14% of its workforce, CEO Brian Armstrong still stated that in the future "all finance will migrate on-chain," and Coinbase is positioning itself around this trend. Several institutions, including Bernstein, Benchmark, and Rosenblatt, have recently maintained a "buy" rating on Coinbase stock, with Bernstein believing that Coinbase is gradually validating the feasibility of its "Everything Exchange" strategy.

The U.S. Senate Banking Committee has released the first updated complete draft of the CLARITY Act since January of this year. The new draft has made significant adjustments in several key chapters.These include: a major rewrite of Chapter 1 concerning definitions, the authority of the U.S. Securities and Exchange Commission (SEC), and other content; the addition of insider trading provisions in Section 109; updating "joint control" to "coordinated control" in Chapter 2; rewriting Section 301 to further clarify the regulatory boundaries between DeFi and CeFi; updating Section 404 to incorporate the compromise proposal from Tillis and Alsobrooks; adjusting Section 505 to narrow the scope of SEC's authority limitations in the tokenization field; and restructuring the bankruptcy and insolvency framework in Sections 701 and 702. Additionally, Section 904 is a new addition, titled the "Build Now Act."Alex Thorn also pointed out that the protective provisions for developers in the Blockchain Regulatory Certainty Act in Section 604 remain largely intact, with only minor modifications that do not weaken its core protective content.

JUST officially released its weekly report. From May 5 to May 11, the JUST ecosystem performed strongly, with a total locked value (TVL) reaching 12 billion USD, accounting for 41.79% of the TRON DeFi market. The lending market remained active, with total deposits exceeding 3.8 billion USD; at the same time, the cumulative JST burn rate has reached 13.70%, further demonstrating the deflationary effect. While the platform provides users with diversified yield options such as sTRX and USDD, it continues to optimize the asset allocation supply and demand pattern. This transparent and efficient mechanism execution, along with long-term stable value returns, not only highlights JUST's robust operational strength as a core DeFi protocol of TRON but also builds a resilient long-term value system for users.

According to The Block, the U.S. Senate Banking Committee has released an updated 309-page text of the Clarity Act, which is set to be reviewed and voted on later this week. The new text includes language related to restrictions on stablecoin rewards, as well as provisions from the Blockchain Regulatory Certainty Act, clarifying that non-custodial developers do not fall under the category of money transmitters. Coinbase, which previously withdrew its support due to controversies over the stablecoin rewards provisions, has now shifted to support, but banking groups still believe the restrictions are insufficient.Meanwhile, the bill still does not include ethical constraints regarding profits from digital assets for the president and other federal officials. Democrats have stated that without relevant compromises, the bill will struggle to gain support.

On May 9 and 10, the Chainlink network recorded 282,170 and 264,090 unique active LINK addresses, respectively, the highest levels since September 2025. The surge in on-chain activity comes against the backdrop of several institutional-grade DeFi projects announcing their migration of cross-chain infrastructure to Chainlink CCIP. On May 7, Solv Protocol announced the completion of a security review following the April Kelp DAO vulnerability incident and decided to migrate over $700 million in tokenized Bitcoin assets (SolvBTC and xSolvBTC) from LayerZero to Chainlink CCIP.Previously, Kelp DAO had also announced the migration of its rsETH infrastructure to Chainlink CCIP. These initiatives represent a significant shift of institutional-grade DeFi infrastructure from LayerZero to the Chainlink cross-chain ecosystem. Additionally, earlier this month, data showed that whale wallets holding between 100,000 and 10 million LINK increased their holdings by 32.93 million LINK within 30 days.

The Sui Network ecosystem welcomes a new reality asset (RWA) application expansion, as Creek Finance announces the launch of its core protocol on the Sui mainnet and the integration of the gold token XAUm launched by Matrixdock.The protocol allows users to split, collateralize, lend, trade, and generate yields on tokenized physical gold on-chain, enabling DeFi operations around gold assets. XAUm is backed 1:1 by physical gold and is verified through third-party audits and on-chain reserve proof mechanisms.Creek Finance stated that this launch marks the official deployment of its core contract, allowing users to perform leverage and yield strategy operations based on gold assets in a permissionless environment, further expanding the application scenarios of RWA in DeFi.

According to Forbes, Galaxy, under Novogratz, announced a partnership with the Ethereum treasury company Sharplink to launch the "Galaxy Sharplink Onchain Yield Fund," with a total scale of $125 million, expected to officially launch in a few weeks.Of this, $100 million comes from Sharplink's Ethereum treasury, and $25 million is injected from Galaxy's own funds. Galaxy will serve as the exclusive manager of the fund, responsible for protocol selection, position management, and risk control. The fund will focus on active DeFi strategies such as lending and liquidity provision, aiming for an annualized return of over 10%.

The Web3 asset data platform RootData has outlined 40 partners of Aave, covering multiple layers such as TradFi/RWA, stablecoins, infrastructure, wallets, DeFi protocols, exchanges, and custody. From its early focus on the lending efficiency of crypto assets to competing for on-chain dollar liquidity after the launch of GHO, Aave seems to be defining an interest rate system for on-chain dollars. At the TradFi and RWA layer, institutions like BlackRock, Franklin Templeton, VanEck, and JPMorgan are prominently featured, along with RWA platforms such as Centrifuge, OpenEden, and Securitize, indicating that Aave is no longer satisfied with lending native crypto assets but is attempting to meet the financing needs of real-world assets on-chain. At the stablecoin layer, partners like Circle, Tether, Ethena, Ripple, and Plasma suggest that Aave is competing for the on-chain "dollar liquidity" entry point. Whoever controls stablecoin deposits is closer to on-chain interest rate pricing power. At the infrastructure layer, partners like Chainlink, ConsenSys, Flashbots, and Mantle provide Aave with price oracles, MEV optimization, and multi-chain expansion capabilities. At the user distribution layer, wallet partners like MetaMask, Ledger, Bitget Wallet, Privy, and Turnkey are lowering the entry barriers for users; meanwhile, institutional channels like Kraken, Bybit, and Fireblocks further amplify the capital entry points. DeFi protocols such as Pendle, Maple Finance, and CoW Swap extend Aave's liquidity into fixed income, institutional lending, and trading scenarios. The recent rsETH/Kelp risk event caused Aave's TVL to drop from a peak of $44 billion to $15 billion, once again testing the risk management capabilities of this established DeFi protocol. Related collection: Aave Web3 Partner Network Collection (continuously updated) Cryptocurrency projects actively showcasing their partner networks have become a key way to enhance transparency and market trust. It is reported that RootData welcomes Web3 projects to claim their information and continues to track and open more project business relationship disclosure channels. The platform has released multiple editions of crypto project ecosystem maps, nominating Web3 ecosystem partners for upstream clients like Visa, Mastercard, and Coinbase. If you wish to nominate your project in future ecosystem maps, please fill out the [RootData 2026 Industry Ecosystem Mapping] form to supplement your important clients and partners.