Weekly DeFi News Recap Ep9

DeFi Statistics

The past week was a turbulent one for Ethereum’s DeFi ecosystem, marked by the largest single-day liquidation in crypto history. Total value locked and activity metrics pulled back, while trading volumes surged as traders rushed to close or hedge positions. After a brief dip, stablecoin capitalization resumed its steady climb, supported by renewed institutional inflows. Meanwhile, the sharp rise in gas fees reflects short-term network congestion as participants repositioned across different strategies.

Chainlink Integrates Real-Time Oracle on MegaETH

Chainlink has launched its first native real-time oracle on MegaETH, embedding Data Streams directly into the Layer 2’s execution environment. This integration enables sub-millisecond access to live market data, which will allow DeFi applications like perpetuals and prediction markets to operate at high speed while remaining onchain.

This marks a major step toward reducing latency in decentralized finance, addressing one of the key bottlenecks for high-frequency trading protocols. The move also strengthens MegaETH’s positioning as an Ethereum scaling solution optimized for low-latency, high-throughput applications.

Source: theblock.co

Aave Freezes PYUSD After Paxos’ $300 Trillion “Fat-Finger” Mint

Paxos accidentally minted 300 trillion PYUSD on Ethereum before burning the tokens less than half an hour later, prompting Aave to freeze PYUSD markets due to the “unexpected high-magnitude transaction.” Paxos quickly confirmed the event was caused by an internal technical error rather than a hack, assuring users that funds were safe and the issue had been resolved.

The PayPal-backed stablecoin briefly wobbled from its peg before recovering. The $300 trillion mint, more than double global GDP, stands as the largest token burn in crypto history.

Source: cointelegraph.com

Polymarket Airdrop Farmers Grow More Sophisticated Ahead of Token Launch

As Polymarket gears up for an expected token launch in 2026, users seeking to maximize potential airdrop rewards have refined their farming tactics. Last year’s crude wash trading has largely disappeared, replaced by subtler strategies using dozens of wallets or genuine trading activity designed to mimic organic engagement. Traders speculate that volume, liquidity provision, profit, and number of markets traded could determine future token rewards.

This shift comes as Polymarket, recently valued at $9 billion following investment from Intercontinental Exchange, prepares for its return to the U.S. after resolving CFTC restrictions. While airdrop farming remains a concern for platform integrity, many users argue that more “natural” participation is better for market health and fairness, even if it still aims to capture a piece of the coming token distribution.

Source: decrypt.co

Uniswap Adds Native Solana Support to Web App

Uniswap has integrated Solana into its web application, enabling users to connect Solana wallets and swap SOL tokens directly without leaving the platform. This implementation aims to reduce fragmentation between Solana and Ethereum, two major DeFi ecosystems that have traditionally operated in isolation, by offering access to tokens across multiple networks.

This update marks the first phase of Uniswap’s broader Solana integration plan, which will later expand to include bridging, cross-chain swaps, and full wallet compatibility. The addition reflects Solana’s growing importance in DeFi, with over $10 billion in total value locked.

Source: theblock.co

Ethereum Foundation Deploys 2,400 ETH via Morpho to Boost DeFi Treasury Strategy

The Ethereum Foundation has allocated 2,400 ETH, worth roughly $9.6 million, alongside $6 million in stablecoins to a yield-bearing vault on Morpho, marking another step in its updated treasury management strategy. This move follows the foundation’s pledge to more actively engage with Ethereum’s DeFi ecosystem and diversify its $820 million crypto holdings beyond simple ETH reserves.

Morpho, a decentralized lending protocol, has become a key venue for institutional DeFi participation. The foundation’s latest move builds on earlier allocations to Compound and Spark, showing a deeper commitment to onchain financial infrastructure even as it continues converting some ETH to fiat for operational needs.

Source: theblock.co

Hyperliquid Activates HIP-3 Upgrade to Enable Permissionless Perp Market Creation

Hyperliquid has launched its long-awaited HIP-3 upgrade, which introduces permissionless deployment for perpetual futures markets on its network. The upgrade allows builders who meet onchain staking requirements to independently create new perp DEXs using HyperCore, a move aimed at increasing decentralization for the platform’s listing process.

Integrated with HyperEVM for smart contracts and governance, HIP-3 also introduces safety mechanisms such as validator slashing and open interest caps to ensure network stability. This will reinforce Hyperliquid’s position as a decentralized derivatives venue and shows its ongoing commitment to expanding builder participation in DeFi.
Source: theblock.co