Weekly DeFi News Recap Ep4

DeFi Statistics

DeFi metrics were stable this week, with only small changes tied to Ethereum’s flat price action. Liquid staking decreased slightly, likely from profit-taking. Lending rose in line with growing stablecoin supply. Total value locked was basically unchanged, with no significant inflows or outflows. Meanwhile Ethereum network activity declined, with fewer active addresses and transactions, indicating lower usage despite stable liquidity.

Tokenized Private Credit Nears $16B, Yields Slip Below 10%

The tokenized private credit market continues to expand, with active loans climbing to $15.95 billion, up more than 14% since mid-June. Total loan originations have reached $29.7 billion across 2,592 deals, though loan counts have fallen, a consequence of fewer but larger transactions driving growth. Average APRs have dropped from 10.33% to 9.75%, which points to greater competition and a shift toward lower-risk lending.

Figure remains the dominant player with $11.64 billion in active loans, followed by Tradable at $2.14 billion and Maple at $1.23 billion. Defaults remain concentrated: Maple faces $47 million, while Aptos-based PACT shows the highest risk profile with a 29.35% APY but $117 million in defaults. In contrast, Credix and Centrifuge continue to post growth without defaults. Credit protocols are maturing, focusing on balancing yield with risk controls. This points to tokenized lending becoming a core piece of institutional-grade infrastructure in DeFi.

Source: bitcoin.com

Uniswap Faces AMM Patent Lawsuit From Bancor

A legal clash is unfolding as Bancor sues Uniswap over alleged infringement of automated market maker (AMM) patents. Bancor, which pioneered AMMs in 2017, claims Uniswap’s constant-product design built directly on its early innovations. Uniswap counters that its code has always been open-source and argues the claims are baseless.

The dispute has sparked industry-wide concern. Paradigm, the DeFi Education Fund, and others filed briefs opposing Bancor’s case, warning that enforcing broad patents could cripple innovation across decentralized finance. Bancor’s own TVL has fallen from $2.26B in 2021 to $66.7M, while Uniswap holds over $5.7B. The outcome could set a precedent: either opening the door to costly DeFi “patent wars” or affirming that AMM designs remain part of the open-source commons.

Source: thecoinrepublic.com

Bedrock Taps Brevis for ZK-Powered Restaking Rewards

Bedrock, a multi-asset liquid restaking protocol, has partnered with Brevis, a zero-knowledge (ZK) coprocessor network, to launch a ZK-powered incentive program on the Base L2. The integration brings Brevis’ Continuous Protocol Incentivization (CPI) framework and zkCoprocessor SDK into Bedrock’s infrastructure, enabling transparent, verifiable, and cost-efficient reward distribution across its ecosystem.

The initiative replaces the opaque, spreadsheet-driven reward systems common in DeFi with a model where user interactions across vaults, restaking networks, lending markets, and DEXs are validated through ZK proofs. By verifying activity and even “non-actions” off-chain without exposing raw data, Bedrock ensures rewards are computed securely and trustlessly. This reflects a trend of using ZK cryptography to scale cross-chain restaking, reduce costs, and improve transparency, which strengthens incentive programs and makes them easier to use.

Source: blockchainreporter.net

Webisoft and Midnight Partner on Institutional-Grade Dark Pool DEX

Webisoft has teamed up with the Midnight Foundation to build a privacy-first dark pool decentralized exchange tailored for institutional traders. Using Midnight’s zero-knowledge stack, multi-party computation, and its Zswap atomic settlement protocol, the platform will enable large orders to be matched and executed confidentially, preventing frontrunning and market disruption that typically plague public on-chain trades.

The dark pool will feature a private matching engine, encrypted balances, and wallet integrations such as MetaMask Snaps, all released under open-source licenses for reuse across DeFi. By introducing “programmable privacy” that balances confidentiality with compliance, the initiative aims to remove a major barrier to institutional adoption. If successful, the project could give funds and enterprises a way to execute large trades on-chain with the confidentiality of traditional finance dark pools, while preserving composability and trustless settlement.

Source: blockchainreporter.net

Hemi Network Partners With Owlto to Bridge Bitcoin DeFi Into L2 Ecosystems

Hemi Network, a Bitcoin Layer-2, has integrated Owlto Finance’s cross-rollup bridge to connect BTC-native assets with major Layer-2 ecosystems. The move allows Hemi users to move value between Bitcoin, Ethereum, and other L2 networks quickly, securely, and cost-effectively. For Owlto, the partnership expands adoption of its interoperability protocol, already recognized for its speed and safety in facilitating L2-to-L2 transfers.

The collaboration positions Bitcoin more directly within the DeFi economy. Instead of being limited to its base layer as a store of value, BTC can now circulate through lending, borrowing, and yield-generating opportunities across multiple chains. By making Bitcoin a fully interoperable asset within DeFi, Hemi and Owlto aim to unlock liquidity at scale and push BTC into active, composable roles across Web3.

Source: blockchainreporter.net

Ethena and FalconX Partner to Boost Institutional USDe Adoption

Ethena Labs has partnered with digital asset prime broker FalconX to drive institutional adoption of its synthetic dollar, USDe. FalconX has added support for USDe across spot trading, derivatives, and custody, while also allowing eligible institutions to use the stablecoin as collateral in certain credit and derivatives transactions. With $12.5 billion in circulation, USDe is already the third-largest stablecoin, behind USDT and USDC.

The partnership enhances capital efficiency by enabling FalconX clients to access OTC liquidity and integrate USDe’s delta-neutral basis strategy, unlocking yield across both DeFi and TradFi. FalconX will also expand market liquidity for both USDe and Ethena’s native token ENA across centralized and decentralized venues. With Ethena’s TVL above $14 billion and new integrations, including Telegram via the TON Foundation. This collaboration further strengthens Ethena's position as one of the fastest-growing players in the stablecoin market.

Source: crypto.news

RedStone Acquires Credora to Launch DeFi Risk Oracle

RedStone, a leading blockchain oracle provider, has acquired decentralized credit specialist Credora to create a combined platform delivering both real-time pricing data and on-chain credit ratings. Operating under the brand Credora by RedStone, the integration aims to bring institutional-grade risk tools to DeFi lending and yield markets.

Founded as X-Margin in 2019, Credora uses trusted execution environments and zero-knowledge proofs to generate privacy-preserving credit ratings and has facilitated over $1 billion in uncollateralized loans. RedStone, meanwhile, secures $10 billion across 110+ blockchains with its oracle feeds. The merger will allow protocols to access dynamic risk scores alongside pricing data, making DeFi strategies more transparent and easier to evaluate. Early data shows that rated products like Morpho Vaults have grown up to 25% faster than unrated peers, showing the demand for risk-aware infrastructure.

Source: blockworks.co

Lit Protocol Brings AI Agents to DeFi With Vincent Launch

Lit Protocol launched Vincent, an onchain AI agent framework designed for real financial applications rather than just demos. The system lets developers package “policies” (rules like spend caps, token allowlists, or time limits) with specific abilities (swap, borrow, bridge), creating non-custodial automation under strict guardrails. Keys are split across secure enclaves, ensuring policies are enforced before any transaction is signed or executed.

The design allows developers to customize risk controls such as MEV protection, slippage caps, or oracle checks while giving users adjustable permissions. Early integrations include Morpheus, which adopted Lit for agent governance rather than to build ad-hoc systems. The roadmap points to privacy-preserving attestations, enabling agents to prove compliance across multiple registries. While the first focus is DeFi automation, Lit envisions agents handling credentials and API logins for broader applications, effectively acting as programmable “quants in your pocket” with cross-chain reach.

Source: blockworks.co

1inch Partners With Ondo Finance to Bring Tokenized RWAs to DeFi

1inch has upgraded its Swap API to support tokenized real-world assets (RWAs), partnering with Ondo Finance to make traditional assets like stocks and ETFs accessible within DeFi. The integration allows eligible users via 1inch, Trust Wallet, and Bitget Wallet, to seamlessly swap into RWAs with USDC, just as they would with native crypto tokens. Trust Wallet’s 200M+ users and Bitget’s community are among the first to gain direct access.

The upgrade addresses the liquidity challenge that has long limited RWA adoption, with professional market makers ensuring smooth execution of swaps. Ondo recently launched Global Markets, offering non-U.S. investors exposure to 100 tokenized stocks and ETFs on Ethereum, with plans to scale to over 1,000 assets by year-end. For 1inch, the move marks a milestone in its mission to unify DeFi with traditional finance, advancing “efficient, jurisdiction-aware access” to tokenized assets across the ecosystem.

Source: coingape.com