defi

According to CoinDesk, Coinbase's Ethereum Layer 2 network Base has launched an AI integration tool called Base MCP, which allows users' Base accounts to connect to AI clients such as ChatGPT, Claude, and Cursor. Users can complete transfers, token exchanges, check balances, view transaction records, and interact with DeFi applications through natural language.

According to The Block, since the KelpDAO cross-chain bridge attack in mid-April, the total value locked (TVL) in DeFi has decreased by about 14%, from approximately $172 billion to $148 billion. The attackers exploited vulnerabilities in off-chain infrastructure rather than smart contract vulnerabilities, stealing about $292 million and exposing new infrastructure risks.The outflow of funds has continued for more than five weeks, indicating that investors are broadly withdrawing marginal capital rather than just targeting specific protocols that were attacked. Lending, as the largest DeFi category, saw its locked amount decrease from about $53 billion to $40 billion, marking the largest decline. Liquidity re-staking protocols also experienced significant drops. The KelpDAO attack indicates that as the security of smart contracts improves, off-chain infrastructure is becoming a more easily exploitable attack surface.

XRP Ledger developers submitted a draft amendment called "AMM Swappable Curves," which plans to introduce three types of swappable curves for the XRPL native automated market maker: constant product, concentrated liquidity, and StableSwap, with a programmable Smart AMM to be added later. This upgrade aims to allow liquidity providers to choose more suitable pricing curves based on asset types, thereby improving capital efficiency.Concentrated liquidity is suitable for trading pairs where most transactions are concentrated within a specific price range, while StableSwap is more appropriate for assets that are close to a 1:1 exchange, such as stablecoins or pegged assets. Existing AMM pools will continue to use the current constant product model and will not require migration. This proposal is seen as an important step in addressing the shortcomings of the DeFi infrastructure on XRPL.Currently, there are over $3 billion in tokenized real-world assets on the XRPL chain, including a recent pilot for tokenized U.S. Treasury redemptions completed by Ripple and JPMorgan. However, to enable these assets to trade, lend, or generate yield more efficiently, a more mature DeFi liquidity infrastructure is still needed. Nevertheless, this proposal is still in the draft stage and will need to go through the XRPL amendment voting process, which may take several months, and there is still uncertainty about whether it will ultimately pass.

The next-generation decentralized social ecosystem Betwin (BY) recently announced that it has officially been acquired by Bluemount Foundation. The DeFi sector business has officially been taken over by BF and established BMBY, strengthening its layout in the fields of data ownership, privacy protection, and social value distribution.As part of the acquisition, Betwin has previously completed a round of $2 million in institutional financing, with participants including well-known institutions such as Bluemount Foundation, Infinite Alliance, ChainPulse Capital, and UZ Capital. With the strategic resources of Bluemount Foundation, Betwin will accelerate the implementation of blockchain social networks, breaking the data monopoly of traditional social giants and reconstructing the trust system and value distribution mechanism in the digital age.

According to CoinDesk, the total market value of stablecoins has reached $322 billion, surpassing the foreign exchange reserves of over 95 countries. The amount of fiat currency held by users through non-traditional banking channels has now exceeded the official foreign exchange reserves of Poland, Thailand, Mexico, as well as the UK, Canada, UAE, and 95 other countries. Currently, only 14 countries/regions have foreign exchange reserves that exceed the market value of stablecoins.Stablecoins are widely used for cryptocurrency trading, DeFi settlements, and cross-border payments. The Bank for International Settlements report indicates that cross-border stablecoin flows have significantly increased since 2022, particularly active in regions with high inflation and severe exchange rate fluctuations. However, the BIS also warns that stablecoin trading may trigger capital outflows, putting vulnerable domestic currencies under depreciation pressure.

Kelp DAO announced on Monday that after losing $293 million due to an attack by North Korea's Lazarus Group on April 18, rsETH has been fully restored after five weeks of repairs. Kelp DAO stated that the final batch of 20,373.7 rsETH has been sent to the LayerZero smart contract responsible for cross-chain transfers, officially concluding the operational phase of the rsETH recovery plan.Multiple crypto protocols contributed funds through the DeFi United initiative to assist in restoring the support for rsETH. The first batch of 25,000 rsETH was transferred on May 13, and withdrawals were reopened the next day. Currently, minting, redemption, and reward operations are all functioning normally. This attack caused a chain reaction in the DeFi lending market, with the attacker borrowing WETH using a large amount of stolen rsETH as collateral on Aave, resulting in Aave incurring $190 million in bad debt. The TVL dropped from $26.4 billion to below $14 billion and has since remained in the range of $13.9 billion to $15.1 billion without showing signs of recovery. In April, there were 25 crypto hacking incidents, resulting in total losses of $630 million.

According to Slow Fog's disclosure, the security agency MistEye detected a cross-registry supply chain attack incident, where attackers targeted developers in the fields of cryptocurrency, DeFi, Solana, Sui/Move, and AI by publishing malicious packages on npm, PyPI, and crates.io. This attack activity includes more than 34 malicious packages and over 384 related versions. The attackers may steal cryptocurrency wallets, SSH keys, cloud credentials, GitHub/AWS tokens, browser data, environment variables, and developers' confidential information.Some of the malicious payloads also attempted to achieve persistence through .cursorrules, CLAUDE.md, Git hooks, shell hooks, cron, systemd, and SSH. Developers are advised to immediately remove the affected packages, isolate the affected systems, retain logs, rotate exposed credentials, rebuild CI environments and developer machines from clean images, and review GitHub, cloud services, SSH, and wallet activity logs.

Aave founder and CEO Stani Kulechov tweeted that the valuation of DeFi lending protocols should not primarily refer to TVL, as it measures net collateral rather than lending activity. Comparing data from the end of 2025, Aave's supply scale is about $52 billion, active loans about $22 billion, loan interest flow over $700 million, and DAO retention about $150 million; SoFi has deposits of about $37.5 billion, a loan book of about $38 billion, loan income of about $1.8 billion, and net profit of about $481 million.Stani stated that in traditional finance, deposits are liabilities or capital costs, and loans are interest-bearing assets, with lenders typically assessing based on the loan book, interest income, interest spread, and asset growth; however, the DeFi market mainly focuses on TVL and DAO retention fees. He believes that Aave is closer to over $700 million in lending business under a traditional financial accounting framework, rather than a $150 million revenue protocol; TVL is not the revenue basis for lending protocols, but the loan book and interest flow are the core.

Grayscale has released its latest research report, with Grayscale's research director Zach Pandl stating that as the CLARITY Act progresses and the U.S. Securities and Exchange Commission (SEC) provides clearer guidelines, tokenized assets and blockchain applications such as decentralized finance (DeFi) may see development.Grayscale believes that Ethereum, Solana, BNB Chain, and Canton Network, which currently dominate financial activities on relevant chains, may be the first to attract institutional capital. The article states that in the fields of tokenized assets, stablecoins, and DeFi, Ethereum, Solana, and BNB Chain are in leading positions, while Canton Network also holds a significant share in the direction of tokenized assets.

According to CoinDesk, MoonPay announced the launch of a new platform, MoonPay Trade, aimed at banks, fintech companies, and corporate clients, providing unified access to tokenized assets, decentralized finance (DeFi) protocols, and stablecoin liquidity, covering over 200 blockchain networks.It is reported that MoonPay Trade will become the core execution layer of its institutional business, MoonPay Institutional, supporting tokenized fund subscriptions, collateral transfers, and integration with DeFi protocols such as Aave, Morpho, and Maple Finance, enabling institutions to conduct lending and yield generation operations directly on-chain.

JPMorgan's latest report points out that although tokenized money market funds have revenue potential, they still only account for about 5% of the broader "stablecoin system," and the core position of stablecoins in the crypto ecosystem is unlikely to be replaced in the short term.The report states that stablecoins have become the default "cash tool" for trading, collateral, settlement, cross-border payments, and liquidity management, widely used in centralized exchanges and DeFi protocols, while tokenized money market funds are constrained by their securities characteristics, subject to registration, disclosure, and transfer restrictions, resulting in structural regulatory disadvantages.Analysts at JPMorgan, led by Nikolaos Panigirtzoglou, expect that without significant changes in the regulatory environment, the market size of tokenized money market funds is unlikely to exceed 10% to 15% of the overall stablecoin market. Current demand is mainly concentrated among crypto-native investors seeking yield and institutional funds looking to balance on-chain settlement with traditional asset protection.The report also notes that although tokenized funds have advantages such as near real-time settlement, 24/7 transfers, and automated clearing, their growth is still constrained by liquidity, counterparty risk, and regulatory uncertainty. JPMorgan believes that in the absence of regulatory easing, these products will struggle to challenge the infrastructure-level position of stablecoins in the crypto market.

According to SoSoValue data, the cryptocurrency market sector has generally rebounded, with a 24-hour increase of about 2% to 8%. Among them, the DeFi sector performed well, rising by 8.37%. Within this sector, Hyperliquid (HYPE) rose by 17.07%, Jupiter (JUP) rose by 9.07%, and Ondo Finance (ONDO) rose by 10.01%. At the same time, Bitcoin (BTC) rose by 1.61%, breaking through $77,000; Ethereum (ETH) rose by 1.59%, breaking through $2,100.It is worth noting that MAG7.ssi rose by 1.73%, DEFI.ssi rose by 9.96%, and MEME.ssi rose by 1.37%.In other sectors, the Layer2 sector rose by 4.85% in 24 hours, with Starknet (STRK) rising by 9.23%; the Layer1 sector rose by 3.60%, with Zcash (ZEC) rising by 14.25%; the PayFi sector rose by 2.31%, with Dash (DASH) rising by 19.48%; the CeFi sector rose by 2.28%, with Mantle (MNT) rising by 8.63%; the Meme sector rose by 0.38%, with Cheems Token (CHEEMS) rising by 23.80%.The cryptocurrency sector indices reflecting historical market trends show that the ssiDeFi, ssiLayer2, and ssiNFT indices rose by 9.78%, 5.27%, and 5.03%, respectively.