Track market-moving stories before they get noisy

BMEX Price Falls 90% As BitMEX Shutdown Hands Market to Binance, Hyperliquid and Rivals

Ondo, Backed Finance, and Robinhood Chain all set all-time highs in tokenized equity holdings this week, while dYdX's new Arcus exchange posted record perps volume — signs the market for onchain stocks is scaling on multiple fronts at once.

The market for tokenized stocks reached a record $2.3 billion in market capitalization in mid-July, according to Token Terminal data, nearly doubling since March, when the sector first cleared $1 billion, and the growth is showing up across every major issuer at once.

On July 21 alone, Artemis data recorded all-time highs for Ondo Finance's tokenized shares outstanding (514.5 million) and holder count (93,880), Backed Finance's tokenized market cap ($579.4 million), and Robinhood Chain's tokenized shares (126,720) and equity holder count (36,170).

Arcus, the tokenized-stock exchange launched this month by the team behind dYdX, posted record daily perps volume of $11.9 million and record open interest of $6.8 million the same day.

Ethereum leads the sector with 34% of tokenized stock market share, followed by BNB Chain at 30% and Solana at 23%, per Token Terminal. Tokenized stocks remain a small corner of the broader tokenized real-world asset market — roughly 5% by Token Terminal's count, while DefiLlama tracks about $27.3 billion in active RWA market cap — but they have been the fastest-growing asset class on Ethereum this year.

Ondo Extends Its LeadOndo's tokenized shares outstanding roughly doubled over six months to 514.5 million, while holder count more than tripled to 93,880 — both all-time highs on July 21. Data: Artemis.Ondo Finance is the largest issuer with $955 million in onchain equities, per Token Terminal, and its July has been dense with catalysts. The firm partnered with Japan's SBI Group on July 16 to tokenize Japanese stocks and explore settlement in JPYSC, SBI's trust-backed yen stablecoin. It also switched on 24/7 minting and redemption for tokenized US stocks and ETFs, added voting rights to its tokenized stocks, and enabled tokenized stock collateral on OndoPerps, its perpetual futures venue — the product behind its record $39.8 million in open interest, per Artemis.

The firm's catalog has passed 430 tokenized stocks and ETFs across Ethereum, Solana, and BNB Chain, and its distribution now runs through MetaMask and Felix on Hyperliquid.

ONDO traded around $0.41 on July 22 with a market capitalization of $1.99 billion, near the top of its seven-day range of $0.32 to $0.41, per CoinGecko. The token jumped roughly 15% in the 24 hours after the SBI announcement.

Backed and the Exchange-Issued WaveBacked Finance, the Swiss issuer behind the xStocks product distributed on Kraken, Bybit, and Solana DeFi, reached a record $579.4 million in tokenized market cap on July 21, per Artemis. Kraken said xStocks surpassed $25 billion in cumulative transaction volume within eight months of launch. Token Terminal puts xStocks' onchain holdings at $507 million, with Binance's bStocks third among issuers at $334 million — a sign exchange-issued products are becoming a distinct growth channel alongside DeFi-native issuers.

Backed Finance's tokenized market cap nearly tripled since late January, jumping from about $430 million to over $530 million in a June 29 step-change before its July 21 record. Arcus perp volume, overlaid since its July 1 launch, hit $11.9 million the same day. Data: Artemis.New Entrants: Robinhood Chain and ArcusRobinhood's Stock Tokens, issued on the company's own Layer 2 that launched July 1, remain the smallest of the cohort at $19.3 million in tokenized market cap, but all three of the product's Artemis metrics — market cap, shares tokenized, and holder count — hit records on July 21. The tokens are available in more than 120 countries and are already being used as collateral on Lighter, a derivatives protocol on the chain.

The speculative layer is arriving too. Arcus, launched July 1 by dYdX Labs with investment from Robinhood Crypto, offers 24/7 spot trading on 95 stock tokens with zero fees and is rolling out perpetual futures on equities, commodities, and indices with up to 50x leverage. The exchange is not available in the US, UK, or Canada. Its record $11.9 million in daily perps volume, while small against crypto-native perps venues, is an early data point for leveraged trading built on tokenized equities.

The Road to $3BAn Ondo executive said in May the company expects the tokenized equity market to reach between $2.5 billion and $3 billion by year-end, per TheStreet. At the current pace — the sector has nearly doubled in four months — that target implies slower growth than the market is delivering.

Holder counts remain the metric to watch. Ondo's 93,880 and Robinhood Chain's 36,170 tokenized-equity holders are records, per Artemis, but are small next to any retail brokerage's user base. Whether 24/7 settlement, DeFi collateral use, and yen-settled Japanese stocks translate into sustained holder growth is what the next two quarters will show.

The team behind dYdX just launched a new exchange that lets you trade Tesla stock and a 50x leveraged perpetual contract from the same self-custodial wallet. Arcus, which went live on July 1 on Robinhood Chain, is what happens when a DeFi trading powerhouse and a retail brokerage giant decide traditional finance needs to live onchain.

The platform already processed nearly 285,000 transactions in its first week, racking up $33 million in trading volume and $15 million in total value locked.

What Arcus actually does Here’s the pitch: around 95 tokenized stock tokens available for fee-free trading, 24 hours a day, seven days a week. No waiting for the NYSE to open. No settlement delays. Just onchain representations of equities that trade whenever you want them to.

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Then there’s the spicier side. Arcus also offers 35 real-world asset perpetual futures contracts with leverage up to 50x. In English: you can take outsized bets on traditional assets using DeFi infrastructure, with no intermediary holding your funds.

The real kicker is composability. Tokenized stocks on Arcus can be used as collateral for perpetual futures positions. So if you’re holding Apple stock tokens, you can put them to work backing a leveraged trade.

Arcus runs on Robinhood Chain, a Layer-2 network built using Arbitrum Orbit technology. The platform is accessible in over 120 countries, though notably not in the US, Canada, or the UK. Eddie Zhang serves as CEO of the project, with dYdX founder Antonio Juliano sitting on the board. The team has been careful to note that Arcus operates separately from the dYdX v4 Chain, positioning it as a distinct product rather than a rebrand.

What this means for investors The planned ARCUS governance token is the obvious thing to watch. The team has indicated reserved allocations for the existing dYdX community, which could create interesting dynamics for current dYdX token holders. No tokens are available for trading yet.

The 50x leverage on RWA perpetuals deserves scrutiny. The platform’s decision to exclude the US, Canada, and the UK from its 120-country footprint is a preemptive compliance move, but the regulatory landscape for tokenized securities remains deeply unsettled globally.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

Hyperliquid, a decentralized perpetuals protocol operating on its own Layer 1 blockchain, is preparing to update its market structure in 2026 as trading activity shifts rapidly toward its open market system. Recent data shows that HIP-3, the network’s permissionless perpetuals market, has surged to account for nearly 50% of Hyperliquid’s daily trading volume, marking a significant increase from about 2% at the start of the year.

With the introduction of HIP-3, Hyperliquid enabled any developer or community to launch perpetuals markets on its platform without the need for central approval. This marks a departure from the traditional exchange-led listing process and reflects a broader trend in decentralized finance favoring open market creation and greater accessibility.

The HIP-3 system relies on an order book structure, using USDC as collateral and managing risk through shared liquidity pools and vaults. This framework has facilitated the rapid proliferation of niche derivatives products and allowed for increased user participation in assets that might not be listed on conventional exchanges.

Mini dictionary: Hyperliquid is a decentralized perpetuals trading platform that allows users to trade crypto derivatives without relying on a centralized operator. It offers both traditional and permissionless markets and operates its own Layer 1 blockchain.

Interest in long-tail and small-cap derivatives has increased as users are able to trade these assets without passing through typical listing hurdles. Permissionless perpetuals lower entry barriers for early-stage crypto projects and investors seeking new market opportunities.

HIP-3 permissionless perp markets have grown to nearly half of Hyperliquid’s daily volume, a substantial rise from just 2% at the beginning of the year.

Strategic growth and competitionThe shift toward open derivatives markets has not only expanded Hyperliquid’s product suite but also helped the platform tap into new revenue streams. By catering to niche asset classes, Hyperliquid is positioning itself to withstand competition from both centralized exchanges such as Binance and decentralized rivals including dYdX and GMX.

Recent surges in trading volume on alternative chains like Solana have underscored the intensity of competition in the decentralized derivatives sector, pushing platforms to continuously innovate in order to retain user interest.

PlatformCore MechanismMain CompetitorsHyperliquid (HIP-3)Order book, permissionless perpsdYdX, GMXBinanceCentralized exchange, vetted listingsOKX, BybitSolanaLayer 1, high trading volume, ecosystem perpsEthereum, Arbitrum protocolsChallenges and regulatory landscapeIndustry experts see the evolving landscape as part of a larger shift toward on-chain derivatives and alternatives to major centralized exchanges. However, in regions like the US and EU, the regulatory environment for decentralized perpetuals remains uncertain, leaving questions about long-term compliance and growth.

Going forward, Hyperliquid is focused on closely monitoring the performance of its vaults and evaluating cross-margin risk management. Another area under review is whether the liquidity provided by HIP-3 can remain resilient in volatile market conditions.

The platform’s long-term acceptance may depend on the appeal of market-making incentives, the availability of advanced tools, and the stance that regulators ultimately take regarding the legal status of permissionless derivatives.

The degree of market participation and regulatory clarity will play a pivotal role in shaping the future of permissionless derivatives on Hyperliquid and similar platforms.

Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

Not financial or tax advice. PANews content is strictly educational and informational and is not investment advice, financial advice, tax advice, legal advice, or a solicitation to buy or sell any digital asset, security, or financial product. Do your own research and consult qualified advisers.

Disclosure. PANews may publish sponsored content, partner content, advertisements, affiliate links, event promotions, and market commentary involving Web3 projects, service providers, or financial products. PANews personnel, contributors, or affiliates may hold digital assets or other interests related to covered topics. See our Terms of Service.

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dYdX Labs founder Antonio Juliano launched Arcus, a new DEX combining tokenized stock trading with perpetual futures, built jointly with Robinhood Crypto on Robinhood Chain.

dYdX Labs launched Arcus on Wednesday, a decentralized exchange that combines tokenized stock trading with perpetual futures. Founder Antonio Juliano announced the launch on X, built jointly with Robinhood Crypto.

Arcus runs on Robinhood Chain, the EVM-compatible layer 2 that Robinhood opened to the public earlier the same day. Spot trading across 95 stock tokens is live now, letting users trade tokenized equities around the clock instead of only during market hours. Perpetuals covering 35 real-world-asset markets remain in a waitlist phase, dYdX said in its launch post.

Eddie Zhang, whose trading startup Pocket Protector was acquired by dYdX Labs, runs Arcus as chief executive. Juliano is joining its board, according to the dYdX blog post announcing the launch. The stock tokens give holders contractual economic exposure to the underlying equity rather than direct share ownership, the post said, the same tokenization structure Robinhood uses across the rest of Robinhood Chain.

dYdX, the decentralized perpetuals exchange that runs its own Cosmos-based appchain, holds $92.4 million in total value locked, per DefiLlama. Its DYDX token traded around $0.1451, according to CoinGecko. dYdX Chain v4 keeps operating alongside Arcus, with existing funds and positions unaffected, the blog post said.

Robinhood Crypto supplies the trading infrastructure and distribution to Robinhood's user base for Arcus, but the brokerage has not issued its own statement naming Arcus or dYdX as of publication.

dYdX said a future Arcus token will reserve allocation for people who traded, staked or validated on dYdX, prioritizing the existing dYdX community over new entrants when the token launches. No launch date for that token or for the Arcus perpetuals waitlist has been set.

Not financial or tax advice. PANews content is strictly educational and informational and is not investment advice, financial advice, tax advice, legal advice, or a solicitation to buy or sell any digital asset, security, or financial product. Do your own research and consult qualified advisers.

Disclosure. PANews may publish sponsored content, partner content, advertisements, affiliate links, event promotions, and market commentary involving Web3 projects, service providers, or financial products. PANews personnel, contributors, or affiliates may hold digital assets or other interests related to covered topics. See our Terms of Service.

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The company behind the dYdX decentralized exchange (DEX) has partnered with Robinhood to rebrand and launch the protocol as Arcus on the Robinhood Chain.

An X account for Arcus posted on Wednesday that “dYdX is now Arcus” and would launch on the Robinhood Chain, Robinhood’s Arbitrum-based layer 2 blockchain that went live the same day.

The dYdX Foundation said that dYdX Labs created Arcus “in partnership with Robinhood” and that the dYdX blockchain “is not affected by it in any way.” The platform is set to be blockchain’s “leading DEX” and will give users access to perpetual products and fee-free trading of 95 tokenized stocks.

Source: Charles d’Haussy

The DEX is part of Robinhood’s expanded push into tokenized assets and perpetual trading, two areas of crypto that have recently exploded in popularity as US regulators have shown interest in allowing the products to more easily come to market.

Robinhood’s embrace of perpetual trading comes as it looks to entice traders who have flocked to the crypto perpetual futures platform Hyperliquid, whose token has climbed nearly 150% so far this year as it has captured market share.

Arcus to offer tokenized stock, perps trading“Until now, traders have been shut out of the most valuable markets on earth — US equities, commodities, and indices — because of where they live, market hours, and institutions restricting access,” Arcus said in a blog post. “We built Arcus to reduce these barriers.”

The protocol said that it will offer perpetuals and tokenized stock trading that will go live this month, allowing tokenized stocks to be used as collateral for perpetuals and providing access to pre-IPO markets.

It added that Robinhood Crypto, the company’s crypto technology arm, made an investment in Arcus but did not disclose further details.

The dYdX Foundation said that Arcus “is a distinct, independent product built on separate infrastructure” and that the dYdX blockchain would continue to operate and be owned by its community.

Major retail-focused trading platforms have been moving to expand their offerings to remain competitive. Crypto exchange Coinbase has looked to rival Robinhood and become a full-service trading platform, having added access to thousands of stocks earlier this year.

Robinhood’s blockchain also follows a similar move from Coinbase in 2023, when the latter launched its Ethereum layer-2 blockchain Base that has grown to be the fifth-largest by value locked, according to DeFiLlama.

Meanwhile, Bitget Wallet, the self-custodial wallet from the Bitget crypto exchange, said on Wednesday that it partnered with Robinhood Crypto to integrate the company’s blockchain to allow its users to trade tokenized stocks.

The decentralized exchange 1inch also said on Wednesday that it would be among the first major swap platforms to support Robinhood Chain. 

Big Questions: Do we really only need 2–5 cryptocurrencies?

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

A new decentralized exchange born from a collaboration between dYdX Labs and Robinhood Crypto is officially open for business. Arcus, which offers perpetual futures and tokenized equities, went live after roughly a year of development, marking one of the more ambitious attempts to merge traditional finance assets with DeFi infrastructure.

The platform currently supports live spot trading across 95 Stock Tokens and 35 Real World Asset perpetuals. Access to perpetual contracts remains on a waitlist for now.

What Arcus actually is The platform runs on Robinhood Chain, an EVM-compatible Layer-2 solution that enables 24/7 trading. Robinhood brings a retail user base exceeding 25 million people, and Arcus is positioning itself to tap directly into that audience.

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Eddie Zhang serves as CEO of Arcus. Zhang previously worked at Meta and co-founded Pocket Protector, a social trading app that dYdX acquired in July 2025. That acquisition was explicitly part of building toward the Arcus launch, bringing product development talent and social trading expertise into the fold.

Antonio Juliano, the founder of dYdX, has called Arcus the best advancement for the dYdX ecosystem.

Why dYdX needed a new approach dYdX Chain, the protocol’s v4 iteration, achieved full decentralization of an order book-based perpetuals exchange. The problem was that being fully decentralized didn’t automatically translate into being fast or easy to use. Platforms like Hyperliquid and others gained significant traction by prioritizing speed and user experience, and dYdX’s share of on-chain perpetuals volume shrank.

Token economics and community incentives Arcus hasn’t launched a token yet, but any future Arcus token will reserve allocations specifically for dYdX community members, granting them priority access and trading capabilities on the platform.

What this means for investors Perpetual contracts are still waitlisted, meaning the core product isn’t fully live yet. How quickly the team opens up perpetuals access, and how the platform performs under real trading load, will determine whether Arcus becomes a genuine competitor.

The social trading elements inherited from the Pocket Protector acquisition could also prove to be a differentiator. Pocket Protector had over 50,000 users prior to acquisition. Bringing copy trading and social mechanics to a decentralized environment, where trades settle on-chain and users maintain custody, would be a new offering in the market.

Traders and investors should watch three things closely: the timeline for opening perpetuals access beyond the waitlist, early volume numbers once perps go live, and any announcements around the Arcus token launch and its specific allocation mechanics for dYdX holders.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

Celer and Compound Hacked: dYdX, Pendle, and Other DeFi Platforms at Risk

New Crypto Coins To Buy Now | Top New Cryptocurrencies With Massive Potential For 2025

Key Highlights Philippine securities regulator targets seven crypto platforms for unlicensed operations

dYdX and Aevo included in latest enforcement advisory from authorities

Regulators expand compliance enforcement across digital asset sector

Platforms operating without registration face access restrictions and penalties

Securities watchdog strengthens oversight of unregistered cryptocurrency service providers

Philippine financial regulators have escalated enforcement measures against numerous cryptocurrency platforms conducting operations without obtaining necessary licenses. Authorities identified seven distinct entities providing investment-related digital asset services while lacking mandatory regulatory approvals. This action represents part of broader efforts to eliminate unauthorized cryptocurrency activities throughout the nation.

Regulatory Spotlight on dYdX and Aevo Platforms Financial authorities specifically named [[LINK_START_0]]dYdX[[LINK_END_0]] and Aevo as operators providing unlicensed investment services to local residents. Regulators determined these platforms actively solicit customer deposits while promoting potential financial gains. Officials confirmed neither organization possesses valid authorization under current cryptocurrency regulations.

Authorities stressed that all digital asset operators must obtain full compliance with crypto-asset service provider regulations before accepting Philippine customers. Registration protocols mandate significant capital reserves alongside rigorous operational compliance measures. Regulators made clear that non-compliant platforms will face immediate enforcement measures.

The securities commission noted that individuals promoting unauthorized platforms may face criminal prosecution under existing statutes. Enforcement provisions authorize substantial monetary fines alongside potential incarceration for regulatory violations. These measures aim to discourage unlicensed marketing activities targeting domestic investors.

gTrade, Pacifica and Orderly Face Compliance Actions Regulators additionally identified gTrade, Pacifica, and Orderly for operating without proper authorization. Officials concluded these entities provide cryptocurrency services while lacking essential regulatory permits. Consequently, authorities continue broadening enforcement activities across numerous platform operators.

The commission has transitioned from issuing advisory warnings toward implementing direct platform restrictions. Regulators recently ordered internet service providers to block access to non-compliant cryptocurrency exchanges. This represents heightened regulatory pressure on international operators serving Philippine markets.

Officials emphasized that unlicensed platforms create substantial financial and security vulnerabilities for users. Regulatory compliance mechanisms ensure proper transparency and institutional accountability across digital asset operations. Authorities remain committed to establishing comprehensive regulatory frameworks for the cryptocurrency industry.

Deriv and Ostium Join Growing Enforcement Roster The latest regulatory advisory incorporates Deriv and Ostium among flagged entities. Authorities determined both platforms conduct business without satisfying registration or compliance requirements. This reinforces the commission’s ongoing opposition to unauthorized cryptocurrency services.

Previous enforcement campaigns have targeted prominent international exchanges operating within Philippine jurisdiction. Authorities implemented access restrictions against Binance following expired compliance deadlines. Additional platforms including Coinbase and Gemini faced similar blocking measures during late 2025.

Despite aggressive enforcement activities, regulators continue encouraging properly licensed cryptocurrency developments. Officials acknowledged that authorized firms have successfully launched services meeting domestic legal requirements. Authorities maintain explicit differentiation between licensed operators and unregistered cryptocurrency platforms.

Oliver Dale

Editor-in-Chief of Blockonomi and founder of Kooc Media, A UK-Based Online Media Company. Believer in Open-Source Software, Blockchain Technology & a Free and Fair Internet for all. His writing has been quoted by Nasdaq, Dow Jones, Investopedia, The New Yorker, Forbes, Techcrunch & More. Contact [email protected]

Kevin Warsh crypto holdings disclosed in his 69-page OGE Form 278e financial filing include indirect stakes in more than 20 blockchain and digital asset companies spanning Solana, dYdX, Polymarket, Dapper Labs, and Lightning Network infrastructure, with combined assets alongside his wife totaling at least $192 million.

Summary

The crypto positions are concentrated in two venture fund structures, DCM Investments 10 LLC and a series of AVF funds. Fed ethics rules require confirmed officials to complete all required divestitures within six months of taking office, and Office of Government Ethics official Heather Jones certified Warsh will be in compliance once the divestitures are completed. Warsh has previously described Bitcoin as “a good policeman” for economic policy and called AI “the most disruptive moment in modern economic history,” views that informed both his venture investments and his rate policy outlook. Kevin Warsh crypto exposure is unlike anything a previous Fed chair nominee has disclosed. His 69-page financial filing reveals indirect positions across DeFi lending, decentralized derivatives, Layer 1 and Layer 2 networks, prediction markets, and Bitcoin payments infrastructure through a web of venture fund structures. If confirmed, he would be the first Federal Reserve Chair in the institution’s 113-year history with prior personal investment in the crypto ecosystem.

The divestiture obligation is clear. Fed ethics rules introduced by Jerome Powell in 2022 following trading scandals among regional Fed presidents explicitly ban senior officials from holding cryptocurrencies, individual equities, sector funds, commodities, and derivatives. New officeholders have six months to achieve compliance. Warsh has pledged unconditional divestiture of all affected positions upon confirmation.

Senators on both sides of the aisle pressed Warsh at Tuesday’s hearing on the transparency of his disclosures, with several Democrats arguing that the use of confidentiality agreements to shield the underlying assets of his largest fund positions makes it impossible for the public to assess conflicts of interest before voting on confirmation.

What Is in the Portfolio and Why It Must Go The Warsh crypto portfolio details published by CoinDesk based on a full review of the OGE filing include identifiable stakes in Solana and Optimism through AVGF I funds, dYdX, Polymarket, Compound, and Blast through DCM Investments 10 LLC, and Dapper Labs, DeSo, and Friends With Benefits through a separate AVF fund series. A direct position in SpaceX and stakes in AI firms including Recraft and 11x also appear.

The two positions that most concern ethics reviewers are both in Juggernaut Fund LP, each listed at over $50 million with no upper limit disclosed. The underlying assets of both are covered by confidentiality agreements. OGE analyst Heather Jones flagged them specifically, noting that compliance requires full divestiture of both. Unwinding LP stakes in illiquid venture funds is more complex than selling publicly traded positions and could take the full six-month window even after confirmation.

The Divestiture Challenge and Recusal Landscape Even after divestiture is complete, Warsh faces a complicated recusal landscape. Federal ethics rules generally require a one-year cooling-off period for matters directly affecting recent financial interests. That means decisions the Fed makes affecting stablecoin issuers, DeFi protocols, or Layer 2 networks in his former portfolio could require Warsh to recuse himself from any deliberations in his first year.

For the Fed’s role in overseeing stablecoin yield regulation, bank crypto custody policy, and any future central bank digital currency framework, a one-year recusal by the chair would be a significant operational constraint. The breadth of Warsh’s portfolio, spanning every major category of digital asset infrastructure, means the recusal landscape is unusually wide compared with any prior Fed chair whose financial conflicts were largely confined to traditional securities.

What a Crypto-Aware Fed Chair Means for the Industry The portfolio is a double-edged signal. A Fed chair with personal venture exposure across DeFi and blockchain infrastructure has more detailed knowledge of the technology than all of his predecessors combined. His views on crypto will not be formed by staff briefings alone. At the same time, the mandatory divestiture and extended recusal obligations mean that whatever policy sympathies his investments implied will be formally constrained for at least the first year of his tenure.

The crypto industry should expect a Fed chair who understands the technology at a structural level and who has publicly described Bitcoin as having a positive disciplinary effect on economic policy. What the industry may not get, at least initially, is a Fed chair who can vote on matters directly affecting the specific networks in which he was invested.

PANews reported on April 22 that, according to The Block, Federal Reserve Chairman nominee Kevin Warsh stated at his Senate Banking Committee hearing that digital assets have become integrated into the U.S. financial services industry and should be incorporated into the financial system. Warsh's previously disclosed financial information shows that he holds dozens of crypto assets, including dYdX, Lighter, Polychain, Dapper Labs, Solana, and Optimism. Warsh supports exploring limited central bank digital currencies (CBDCs) but stated that issuing a CBDC would be a "bad policy choice."

Senator Elizabeth Warren, the top Democrat on the Senate Banking Committee, suggested at her hearing that Warsh could become a "puppet" of Trump, potentially leading the president to use the Federal Reserve's power to benefit his family's crypto company. Senator Tillis stated that she would not vote for Warsh's nomination until the Justice Department's investigation into Federal Reserve Chairman Powell is resolved.

BeInCrypto Institutional Research: 15 Firms Managing Crypto Capital and Liquidity

May brings the return of dYdX Surge Season 14 and another round of BONK Trading Events, building on the momentum from the month of April.

Traders can once again take advantage of ongoing fee incentives and liquidation rebates through Surge, alongside a fresh set of weekly BONK Trading Events centered on individual RWA markets.

Continued BONK RWA Trading Competition Following strong participation in April, the BONK RWA Trading Competition is back for another month. The format remains the same - a set of 1-week sprints, P&L-based trading competitions taking place on bonk.trade.

The first event kicks off May 4, with each week highlighting a specific market:

Week 1: Crude Awakening Week 2: Gold Rush Week 3: Silver Rush Competition Overview Format: P&L-based trading competition 

Duration: 1 week per event 

Start Date: May 4, 2026

Eligibility:

Non-API traders Traders using the bonk.trade UI powered by dYdX Prize Pool: $10,000 USDC per event, distributed to the top 10 traders by P&L

Prize Distribution:

1st: $3,000 2nd: $2,000 3rd: $1,000 4th–5th: $750 each 6th–10th: $500 each Rewards will be distributed by CLC following the conclusion of each event. 

Surge Season 14 Surge Season 14 continues as part of the community-approved incentives program, keeping the focus on consistent and organic trading activity across the platform.

Here's what's live in May:

Zero maker and taker fees on BTC and BONK perpetual markets Liquidation rebates for traders liquidated on non-BTC markets Trade BTC & BONK Perpetuals with Zero Fees BTC and BONK perpetual markets will continue to offer 100% maker and taker fee discounts throughout May. 

As approved by the dYdX community, these markets remain fee-free for all traders during the incentive period. Note: Other fees remain unchanged, including gas, bridging, slippage, and third-party fees. All future fee changes remain subject to governance decisions.

Liquidation Rebate Program The Liquidation Rebate Program continues into May, providing partial rebates to traders who are liquidated on eligible non-BTC perpetual markets.

The program remains a key part of the Surge incentive structure, helping to support traders through periods of market volatility.

Looking Ahead With Surge Season 14 and the return of BONK Trading Events, May offers another month of meaningful incentives for both active traders and those looking to explore specific markets in a competitive setting.

Disclaimer dYdX is a decentralised, disintermediated and permissionless protocol, and is not available in the U.S. or to other restricted persons. All use of dYdX software is subject to the dYdX Software Terms of Use.

This post describes anticipated features in the open source dYdX software. The implementation of these features in any live deployment of dYdX software will be decided by the relevant deployer community. dYdX International Ltd. ("DI"), dYdX Trading Inc. dba dYdX Labs ("dYdX Labs") and their affiliates do not develop, control or operate any component of dYdX software for public use.

The information provided in this website is for general informational purposes only and DI reserves the right to update, modify, or amend any contents herein, at its sole discretion and without prior notice. Nothing herein should be used or considered as legal, financial, tax, or any other advice, nor as an instruction or invitation to act in any way by anyone.

Engaging in any activity involving crypto-assets (including trading crypto assets) is risky due to high volatility. Returns are not guaranteed and may fluctuate over time depending on multiple factors, and you may lose your entire investment, particularly when using leverage. Investment into crypto-assets may not be regulated and may not be suitable for retail investors. You should perform your own research and due diligence before engaging in any activity involving crypto-assets.

In no event will DI or its affiliates be liable for any loss or damage, including without limitation, indirect or consequential loss or damage, arising from or in connection with the use of this website. By continuing to access this website, you agree to the above and accept the possibility of changes in the information provided.

‍

Disclaimer © 2025 dYdX International Ltd. All rights reserved.

‍dYdX is a decentralised, disintermediated and permissionless protocol, and is not available in the U.S. or to other Restricted Persons. All use of dYdX software is subject to the dYdX Software Terms of Use. 

dYdX International Ltd ("DI"), dYdX Trading Inc. dba dYdX Labs (“dYdX Labs”) and their affiliates do not develop, control or participate in the operation of any component of the dYdX protocol for public use.

To the extent this content describes anticipated features in the open source dYdX software, the implementation of these features in any live deployment of dYdX software will be decided by the relevant deployer community. 

The information provided herein is for general informational purposes only, and DI reserves the right to update, modify, or amend any contents herein, at its sole discretion and without prior notice. Nothing herein should be used or considered as legal, financial, tax, or any other advice, nor as an instruction or invitation to act in any way by anyone.

Engaging in any activity involving crypto-assets (including staking, trading crypto assets and depositing into the MegaVault) is risky due to high volatility. Returns are not guaranteed and may fluctuate over time depending on multiple factors, and you may lose your entire investment, particularly when using leverage. The inclusion of any launchable market on dYdX does not represent endorsement of the projects and all listings are community-driven. You should perform your own research and due diligence before engaging in any activity involving crypto-assets. In no event will DI, dYdX Labs or their affiliates be liable for any loss or damage, including without limitation, indirect or consequential loss or damage, arising from or in connection with the use of this content. By continuing to access this content, you agree to the above and accept the possibility of changes in the information provided.

Injective USDC is set to be the primary stablecoin standard across the Cosmos ecosystem and dYdX. This automatically sets Injective up to be one of the largest blockchains in history for onchain stablecoin issuance and payments.

Skip:Go, the dominant routing layer in Cosmos, will also make Injective USDC the default denomination across its integrations. 

A four-year minimum commitment will ensure that this integration is carried forward for years to come with a unified stablecoin issuance source. One canonical USDC for the interchain led by Injective.

A Canonical Stablecoin Standard, ExplainedCanonical has a specific meaning here. When a chain designates a canonical version of USDC, every wallet, exchange, lending market, and DEX in that ecosystem treats it as the single source of truth. New issuance flows through one route. Liquidity does not fragment across wrapped or bridged variants. Default integrations point to one place.

A canonical standard extends that across sovereign ecosystems. Multiple chains and applications draw their USDC from a shared issuance source, settle in a common denomination, and route transfers through native infrastructure. With this announcement, Cosmos chains and applications have standardized on Injective USDC.

This is the model that has made USDC durable elsewhere. It is also the model Circle has framed as the foundation of an internet financial system, where regulated digital dollars move with the same openness and reliability as information. A canonical standard reduces the cost of moving capital across chains. It is the reason banks settle in shared currencies, and it is increasingly the reason chains do.

USDC Across the Interchain EcosystemCosmos Hub and Cosmos Labs confirmed that USDC issued through Injective will route across the Cosmos ecosystem via IBC. The announcement carries a four-year minimum commitment to long-term USDC support through Injective, which provides the runway that builders, institutions, and applications need to deploy real capital without renegotiating their stablecoin layer every cycle.

Skip Protocol’s Skip:Go, which handles the bulk of interchain transfers in Cosmos today, is adopting Injective USDC as its default USDC denomination. Migration tooling will be released through Cosmos Labs for chains and applications moving from prior USDC sources.

USDC has anchored payments, swaps, and treasury flows across Cosmos since 2023. What this standardization adds is permanence: a known issuer, native infrastructure, and a single denomination that does not need to be re-bridged for every counterparty.

Filling the Gap Noble LeftEarlier this year, Noble announced its migration away from Cosmos. Noble had been the longtime native USDC issuer in IBC. The move left Cosmos chains and applications without a long-term issuance source. Injective now fills this gap directly and takes over $100 Million in issuance.

The selection of Injective is the result of a deliberate process by Cosmos Hub, Cosmos Labs, and Skip Protocol to find a blockchain that is here long-term and is proven to succeed for years to come. The four-year minimum commitment gives Cosmos chains a stable counterparty to build against and removes the cost of another issuer migration in the next cycle.

For applications already running USDC in Cosmos, the question is no longer which stablecoin comes next. Injective USDC is the only final answer.

dYdX, First in Line alongside Cosmos HubdYdX, one of the largest perpetuals DEXes ever built, is the first chain to migrate. The sovereign Cosmos appchain processes over $4 billion in monthly volume across derivatives markets where USDC is the collateral and the settlement asset.

Every perpetual position, every margin deposit, and every PnL settlement on dYdX will trace back to Injective USDC. Funding rate payments and liquidation flows will settle in Injective USDC. The trader experience does not change. Deposits, fills, and withdrawals look the same on the frontend. Underneath, the dollars come from Injective.

dYdX is one of the most demanding consumers of USDC liquidity in the industry. Choosing Injective as the issuance source for that collateral is a direct statement about which chain dYdX considers the most credible long-term anchor for derivatives in Cosmos.

Skip:Go and CCTP. One-Signature Onchain UX.Skip:Go, Skip Protocol’s interchain routing layer, makes Injective USDC the recommended default USDC denomination across Cosmos. Users moving USDC into and across Cosmos will see Injective USDC as the standard route.

CCTP support on Injective enables one-signature transfers between Injective and the broader CCTP network of supported chains. As of December 2025, USDC was natively available on 30 blockchains, with CCTP connecting 19 of them and processing $126 billion in cumulative crosschain volume. The Skip:Go user experience does not change. A single signature settles a route that increasingly crosses ecosystems.

For builders integrating USDC for the first time, the recommendation is direct: default to Injective. Long-term onboarding support, canonical denomination, and ecosystem alignment all point to one place.

The Numbers Behind This DecisionUSDC entered 2026 with roughly $79 billion in circulation and processed $11.9 trillion in onchain transaction volume in Q4 2025 alone, with 108% year-over-year circulation growth as of 2025. USDC’s lifetime trading volume crossed $55 trillion in January 2026.

The broader stablecoin market is moving with it. Total stablecoin market capitalization closed Q1 2026 above $315 billion, up roughly 55% year-over-year, and stablecoin transaction volume across all networks exceeded $33 trillion in 2025. Visa Onchain Analytics reported $1.23 trillion in stablecoin transaction volume in December 2025 alone.

Payments adoption is where the trendline gets sharper. BCG’s January 2026 white paper, Stablecoin Payments: The Truth Behind the Numbers, tracked B2B stablecoin payments growing from under $100 million in monthly volume in early 2023 to over $6 billion by mid-2025. Total stablecoin payments volume hit a $122 billion annualized run rate in 2025. Visa’s stablecoin-linked card spend reached a $3.5 billion annualized run rate in Q4 FY2025, growing 460% year-over-year. Fireblocks reported a 3x year-over-year increase in institutional stablecoin payment flows across its enterprise client base in the same year.

The regulatory perimeter has caught up. The GENIUS Act, enacted in 2025, gave US payment stablecoins a federal framework with full reserve backing requirements, monthly disclosure obligations, and holder priority in insolvency. The EU’s MiCA regulation gave issuers a passportable license across the European market. The dollar stablecoin is no longer a parallel system. It is part of the financial system.

The chain that becomes the canonical issuance layer for that dollar inside one of the largest sovereign ecosystems in crypto sits at a different tier from the chain that does not.

Why InjectiveThe architectural reasons are direct. Injective runs an onchain order book with 0.64-second block times and transaction fees as low as $0.00008. Native IBC, Ethereum, and Solana connectivity make it a natural home for an issuer that already lives on 30 chains. The native EVM mainnet that launched in November 2025 added a MultiVM environment supporting Cosmos-native applications and the existing EVM stablecoin tooling stack inside the same execution layer.

The institutional posture is the other half. Google Cloud and Binance’s YZI Labs sit on the Injective Council and operate validators on the network. CFTC-regulated INJ futures began trading on Bitnomial Exchange in April of 2026. Canary Capital has an active staked-INJ ETF filing with the SEC. Paxos has brought yield-bearing stablecoin issuance to the network. USD-denominated stablecoin volume on Injective has exceeded $40 billion since launch.

The combination of payments-grade performance, MultiVM execution, regulated derivatives infrastructure, and an institutional stablecoin footprint is what brought Cosmos Hub, dYdX, and Skip Protocol to Injective rather than another chain.

Migration in MotionThe migration rolls out over the coming months. dYdX is first. Cosmos Labs is coordinating the rollout for additional chains and applications across the ecosystem.

Live integration details will continue to be published at injective.com/usdc. There you will find faucets, simple swaps into USDC and ecosystem projects that support Injective’s native USDC standard.

dYdX leads the migration, with the remainder of the Cosmos ecosystem to follow over the coming months. Cosmos Labs is the operational point of contact for any chain or application ready to move.

About InjectiveInjective is a lightning fast interoperable layer one blockchain optimized for building premier Web3 finance applications. Injective provides developers with powerful plug-and-play modules for creating unmatched dApps. INJ is the native asset that powers Injective and its rapidly growing ecosystem. Injective is incubated by Binance and is backed by prominent investors such as Jump Crypto, Pantera and Mark Cuban.

Website | Telegram | Discord | Blog | Twitter | Youtube | Reddit | Instagram

Following momentum throughout May, dYdX Surge Season 15 continues into June with ongoing trading incentives designed to support active participation across the platform.

This month, traders can continue to take advantage of zero fees on select perpetual markets and liquidation rebates on eligible non-BTC markets as part of the community-approved Surge incentives program.

Surge Season 15 Surge Season 15 remains focused on encouraging consistent and organic trading activity across the dYdX ecosystem through fee incentives and trader support programs.

Here’s what’s live in June:

Zero maker and taker fees on BTC and BONK perpetual markets Liquidation rebates for traders liquidated on non-BTC markets Trade BTC & BONK Perpetuals with Zero Fees BTC and BONK perpetual markets will continue to offer 100% maker and taker fee discounts throughout June.

As approved by the dYdX community, these markets remain fee-free for all traders during the incentive period. 

Note: Other fees remain unchanged, including gas, bridging, slippage, and third-party fees. All future fee changes remain subject to governance decisions.

Liquidation Rebate Program The Liquidation Rebate Program also continues into June, providing partial rebates to traders who are liquidated on eligible non-BTC perpetual markets.

The program remains an important part of the Surge incentive structure, helping support traders during periods of heightened market volatility.

Looking Ahead With Surge Season 15 continuing into June, traders can continue benefiting from reduced trading costs and ongoing incentive programs across the platform.

Additional updates and community initiatives will be shared throughout the month.

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Disclaimer dYdX is a decentralised, disintermediated and permissionless protocol, and is not available in the U.S. or to other restricted persons. All use of dYdX software is subject to the dYdX Software Terms of Use.

This post describes anticipated features in the open source dYdX software. The implementation of these features in any live deployment of dYdX software will be decided by the relevant deployer community. dYdX International Ltd. ("DI"), dYdX Trading Inc. dba dYdX Labs ("dYdX Labs") and their affiliates do not develop, control or operate any component of dYdX software for public use.

The information provided in this website is for general informational purposes only and DI reserves the right to update, modify, or amend any contents herein, at its sole discretion and without prior notice. Nothing herein should be used or considered as legal, financial, tax, or any other advice, nor as an instruction or invitation to act in any way by anyone.

Engaging in any activity involving crypto-assets (including trading crypto assets) is risky due to high volatility. Returns are not guaranteed and may fluctuate over time depending on multiple factors, and you may lose your entire investment, particularly when using leverage. Investment into crypto-assets may not be regulated and may not be suitable for retail investors. You should perform your own research and due diligence before engaging in any activity involving crypto-assets.

In no event will DI or its affiliates be liable for any loss or damage, including without limitation, indirect or consequential loss or damage, arising from or in connection with the use of this website. By continuing to access this website, you agree to the above and accept the possibility of changes in the information provided.

‍

Disclaimer © 2025 dYdX International Ltd. All rights reserved.

‍dYdX is a decentralised, disintermediated and permissionless protocol, and is not available in the U.S. or to other Restricted Persons. All use of dYdX software is subject to the dYdX Software Terms of Use. 

dYdX International Ltd ("DI"), dYdX Trading Inc. dba dYdX Labs (“dYdX Labs”) and their affiliates do not develop, control or participate in the operation of any component of the dYdX protocol for public use.

To the extent this content describes anticipated features in the open source dYdX software, the implementation of these features in any live deployment of dYdX software will be decided by the relevant deployer community. 

The information provided herein is for general informational purposes only, and DI reserves the right to update, modify, or amend any contents herein, at its sole discretion and without prior notice. Nothing herein should be used or considered as legal, financial, tax, or any other advice, nor as an instruction or invitation to act in any way by anyone.

Engaging in any activity involving crypto-assets (including staking, trading crypto assets and depositing into the MegaVault) is risky due to high volatility. Returns are not guaranteed and may fluctuate over time depending on multiple factors, and you may lose your entire investment, particularly when using leverage. The inclusion of any launchable market on dYdX does not represent endorsement of the projects and all listings are community-driven. You should perform your own research and due diligence before engaging in any activity involving crypto-assets. In no event will DI, dYdX Labs or their affiliates be liable for any loss or damage, including without limitation, indirect or consequential loss or damage, arising from or in connection with the use of this content. By continuing to access this content, you agree to the above and accept the possibility of changes in the information provided.

dYdX just made it possible to go from dollars in your bank account to leveraged perpetual futures in about three taps. The decentralized exchange integrated MoonPay’s fiat on-ramp into its mobile app, letting users deposit funds through credit and debit cards, Apple Pay, and Google Pay.

The MoonPay integration is live on both iOS and Android versions of the dYdX mobile app. Users can now convert fiat currency directly into USDC, which serves as the collateral currency for trading on the platform. The payment rails include standard card payments alongside Apple Pay and Google Pay.

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MoonPay operates in more than 160 countries, which gives this integration a broad geographic reach from day one.

This isn’t dYdX’s first attempt at solving the fiat on-ramp problem. The platform previously partnered with Banxa, which began facilitating USDC purchases using various payment methods starting January 24, 2025. The MoonPay integration represents an expansion of that strategy rather than a replacement, giving users more options for getting money onto the platform.

The timing here aligns with a broader trend across decentralized exchanges. MoonPay launched a similar integration with Hyperliquid, another perpetual futures DEX, reflecting the payment processor’s deliberate push into the decentralized trading vertical.

dYdX has cited its mobile fiat deposit feature as a core improvement in its 2025 annual report.

The risk side is worth noting. MoonPay handles KYC and compliance on their end, but the ease of accessing leveraged trading products through familiar payment methods could draw regulatory attention, particularly in jurisdictions already scrutinizing crypto derivatives.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.

Jefferies: Samsung is likely to follow SK Hynix’s example to list in the US via ADRs.

Jeff Kim, Head of Research at Jefferies, said Samsung is likely to follow SK Hynix in listing on the U.S. market via American Depositary Receipts (ADRs), which will boost the share price of the South Korean chipmaker whose valuation lags behind Micron. "Chip stocks are at a turning point. ADRs will serve as an important catalyst to drive their valuations," he added.

2 minutes ago

UBS and TD Cowen sharply raise Arm’s target price, betting on a revaluation of Arm’s AI data center CPU value.

Arm’s stock price pulled back this week alongside the high-valuation AI sector, though some Wall Street analysts say the correction does not alter the company’s long-term standing in AI data centers. UBS sharply raised Arm’s price target from $260 to $470, retaining its Buy rating; TD Cowen lifted its target from $265 to $475, also keeping a Buy recommendation. Both firms share the view that as agentic AI evolves, CPUs could gain greater importance in data center architectures, rather than GPUs continuing to monopolize the investment narrative. TD Cowen believes that over the long term, CPUs could hold a more strategic position in certain AI workloads. UBS, meanwhile, emphasizes that the real debate in the market centers on the revenue potential of Arm’s self-developed or independent CPU business. The bank projects Arm’s CPU-related revenue could reach around $14 billion by 2030, though the company itself has stated this business will not have a material impact on its finances until fiscal 2028. Arm’s strengths lie in low latency and energy efficiency—metrics that major cloud providers are increasingly prioritizing as they expand AI infrastructure. Even with its stock pulling back from recent highs in the short term, analysts still view Arm as one of the key beneficiaries of the server CPU upgrade cycle.

2 minutes ago

Crypto whale who profited over $23.77 million from BAT ICO liquidates 27,586 ETH

According to monitoring by Yu Jing, a whale that earned $23.77 million from participating in the BAT ICO sold 15,000 ETH (valued at roughly $24.29 million) two hours ago. The whale has now fully liquidated all 27,586 ETH it received from selling 35 million BAT on-chain over the past day and a half, converting the proceeds into 44.836 million USDS at an average selling price of $1,625.

2 minutes ago

Sources: Iraqi officials once considered withdrawing from OPEC, but current plans are to remain a member and pursue a higher quota.

A senior Iraqi oil ministry official said that if OPEC quotas are not significantly increased, Iraq will be forced to consider all available options. Sources said Iraqi officials had considered withdrawing from OPEC, but the current plan is to remain a member and push for higher quotas. (Jinshi)

2 minutes ago

Kepler Cheuvreux raises ASML’s European share price target from €1,460 to €1,830.

Kepler Cheuvreux has raised the target price for ASML’s European shares from €1,460 to €1,830.

2 minutes ago

Stifel: U.S. economy in "overheated expansion" as AI investment cycle outweighs consumer pressure

U.S. large diversified financial services holding company Stifel has raised its year-end S&P 500 target and rolled out a stock allocation framework for a "high-growth, high-inflation" environment. The firm lifted its year-end S&P 500 target to 7,800 points, noting the U.S. economy is entering a "running hot" state—where economic growth is strengthening alongside mounting inflationary pressure. Stifel’s models show U.S. growth momentum is picking up while inflation momentum is clearly overheating, a trend that will reshape the market’s leading sector structure in the second half of the year. Instead of traditional consumer sectors, Stifel’s top picks are investment-led cyclical industries, including banks, transportation, materials, energy, semiconductors, software and equipment. The firm adds that fixed-asset investment in AI remains on the rise: large tech firms including Amazon, Microsoft, Meta and Google are projected to combine for roughly $725 billion in total capital expenditures in 2026, some $100 billion higher than prior estimates. This means the AI investment chain is likely to continue outperforming the consumption chain squeezed by inflation. Stifel advises investors to reduce exposure to discretionary consumer, consumer staples, communication services and some financial services sectors, as these areas see weaker earnings revisions. Conversely, the firm favors cyclical value stocks and hedges with defensive value sectors such as insurance, autos, energy and banks.

2 minutes ago

AI Token Livepeer (LPT) Soars 150%, Then Drops 40% – What’s Driving the Volatility?

PANews reported on August 26th that dYdX has officially released a new roadmap, with its core development company, dYdX Trading, rebranding as dYdX Labs. Over the next 90 days, dYdX plans to conduct software upgrades to support the community and achieve significant breakthroughs in performance, user experience, and token utility. These upgrades include: 1. Partner fee sharing: Partners who bring trading volume and liquidity to dYdX can earn up to 50% of protocol fees; 2. The introduction of segmented and TWAP orders; 3. Designated proposers to significantly reduce end-to-end transaction latency; 4. Improved order gateways; 5. Telegram trading functionality, enabling seamless trading between dYdX accounts on the web and Telegram, launching in September 2025; 5. Social login, supporting instant login and deposits using Google, Apple, or Passkey; 6. Front-end integration with Osmosis, enabling one-click swaps and staking between USDC and DYDX; and 7. DYDX staking to reduce transaction fees.

A newly created wallet withdrew 17,675 ETH from Binance, valued at $28.58 million.

According to monitoring by Onchain Lens, a newly created wallet withdrew 17,675 ETH from Binance, valued at $28.58 million.

4 minutes ago

JPMorgan Chase raised its S&P 500 target to 7,800 points, while warning of an overcrowded AI trade.

JPMorgan Chase has raised its year-end outlook for U.S. stocks, while cautioning investors that the overcrowding in AI-related momentum stocks is becoming the market’s most vulnerable segment. The JPMorgan strategy team led by Dubravko Lakos-Bujas lifted its 2026 year-end target for the S&P 500 from 7,600 to 7,800 points, citing continued upward revisions to corporate earnings expectations and nearly doubling of AI-related capital expenditures. The bank noted that consensus earnings expectations for both 2026 and 2027 have been revised up by roughly 10% since the start of the year, a magnitude typically only seen in the recovery phase after a recession or major shock. However, JPMorgan does not interpret this upward revision as a risk-free rally. The bank pointed out that low-quality growth stocks, speculative growth stocks, and second- and third-tier AI-related concept stocks have become "extremely overcrowded," and a pullout of capital could trigger a rapid correction. The strategists also noted that rising equity supply in the coming quarters and potentially tight monetary policy could cap further valuation expansion. On the allocation front, JPMorgan recommends a barbell strategy: holding high-quality growth stocks and stocks directly benefiting from AI on one end, and low-volatility, high-quality stocks as a portfolio buffer on the other. The bank remains bullish on tech, select industrials, utilities, defense, banks, and some healthcare growth stocks, but believes the market’s upward trajectory will not be linear.

4 minutes ago

Preview: The U.S. May core PCE data will be released at 20:30 tonight, and is projected to hit its highest level since October 2023.

The Fed’s key inflation gauge, the Personal Consumption Expenditures (PCE) price index, will be released at 20:30 tonight, with markets expecting a sharp rise in May inflation that could reignite rate hike bets. The headline PCE year-over-year growth rate is projected to hit 4.1% in May, up from 3.8% in April and marking its highest level since 2023. Core PCE, which excludes food and energy, is forecast to rise to 3.4% year-over-year, up from 3.3% in April and its highest reading since October 2023. Core PCE has remained above the Fed’s 2% inflation target since 2021. The recent short-term inflation uptick was driven mainly by surging gasoline prices amid the Iran conflict in May. Oil prices have since edged lower following the signing of a peace deal between the U.S. and Iran, but core inflation has strengthened in tandem, indicating that price pressures are not solely tied to geopolitical oil shocks. Data from the CME FedWatch Tool shows that as of Wednesday, markets are pricing in a 34% probability of a 25 basis point rate hike in July. Aditya Bhave, U.S. economist at Bank of America Securities, noted that the recent inflation rebound stems in part from tariffs and one-off disruptions, but successive supply shocks have eroded the Fed’s patience, while deflationary room in the housing sector has largely been exhausted. Data shows that core PCE dipped to 2.6% in April, its lowest level since 2022, but annualized core PCE growth over the past three and six months has hovered near 3.8%.

4 minutes ago

SK Hynix plans to list on NASDAQ on July 10: A crypto whale opens 90% of its bullish positions in a single day, with all $21.27 million in long positions in unrealized profit.

According to Hyperinsight’s monitoring, SK Hynix officially announced its U.S. listing date today, targeting a July 10 debut on the NASDAQ. The company had previously disclosed a over $29 billion listing fundraising plan yesterday afternoon. Driven by listing optimism, SKHX surged 14% intraday, hitting $1930 at press time, with a daily trading volume of $407 million and open interest of $237 million. Since the news broke yesterday, 10 whales have built positions in SKHX on Hyperliquid, 9 of which opened long positions totaling around $21.27 million, at an average entry price of ~$1797.8 and average unweighted liquidation price of ~$1390.6. With price gains, all 9 long positions are now in unrealized profit. Market data shows that positions of over $1 million amount to roughly $140 million, with a long-short ratio (longs/shorts) of ~0.715. The average entry price for longs is ~$1672, while shorts average ~$1640. The nearest short liquidation threshold stands at $2149, just $200 away from the current price, mounting short-side pressure. -HyperInsight Bot is now live. Add @HyperInsightBot to your Telegram group, set it as admin (enable message sending permission) to auto-sync on-chain updates.

4 minutes ago

The "Retail vs. Wall Street" concept-linked token WEN continues its strong run, rising over 18% in after-hours trading.

According to Bitget market data, Wendy's (WEN) rallied 25.66% in the regular trading session, then climbed an extra 18.96% in after-hours trading, now changing hands at $9.35. Earlier reports noted that Serenity took to Twitter to mock the latest meme stock movement unfolding on Reddit's high-risk trading communities, targeting U.S. fast-food chain Wendy's. The Reddit community's meme warning reads: "If Wendy's goes bankrupt, we'll all be out of jobs, and after losing all our trading money, we'll have to work behind Wendy's trash cans." Serenity later clarified that they hold no positions, only found the activity amusing, and added they were unsure if the campaign would succeed. Wendy's holds a special cultural status on Reddit's WallStreetBets community; for years, "working behind Wendy's trash cans" has been a staple joke among retail investors mocking their trading losses.

4 minutes ago

Danske Bank: Federal Reserve may raise interest rates at least twice

Danske Bank senior analyst Kirstine Kundby-Nielsen and chief analyst Jens Peter Sorensen stated in a report that they expect the U.S. Federal Reserve to raise interest rates twice, in December 2026 and March 2027 respectively, bringing the federal funds rate to 4.00%-4.25%. "However, we emphasize there is a risk that rate hikes could come earlier and that the number of hikes may exceed two," they said. The first Federal Reserve meeting led by Kevin Warsh sent a clear signal that the Fed is increasingly moving away from forward guidance surrounding future monetary policy decisions. "All signs indicate that (the Fed) is leaning toward having greater discretion in future policy decisions," the Danske Bank analysts added. Source: Jin10

4 minutes ago

PANews reported on April 8th that, according to The Block , Hyperliquid , a decentralized perpetual contract trading platform, saw its share of global perpetual contract trading volume rise to nearly 6% in March , a significant increase from approximately 3.5% a year ago, with monthly trading volume approaching $ 20 billion. The report states that even with the overall decline in exchange trading volume since August 2025 , Hyperliquid's share has continued to rise, indicating its acquisition of real market share from centralized exchanges. Compared to other decentralized platforms such as dYdX and GMX , Hyperliquid is leading in both trading volume growth and product expansion. The platform has expanded to non-crypto assets, including 24/7 commodities such as crude oil, and the proportion of related transactions in overall trading volume is constantly increasing, seen as an early sign of decentralized derivatives platforms entering the traditional multi-trillion-dollar derivatives market.

If traditional finance got a blockchain makeover, DeFi protocols would inevitably be the result. Here, decentralized apps (DApps) and smart contracts reign supreme, offering you control over your financial future. 

From staking your digital assets for crypto yield to conducting anonymous crypto swaps, this guide introduces you to the top DeFi protocols to keep an eye on in 2026.

In This Guide:

12 Top DeFi protocols in 2026 DeFi protocols comparedWhat are DeFi protocols?How do DeFi protocols work?Should you use DeFi protocols?Could DeFi replace traditional finance?Frequently asked questions12 Top DeFi protocols in 2026

1. dYdX

Best DeFi protocol for liquid staking

Token

dYdX

Token max supply

1,000,000,000 DYDX

Market cap

$1.499B

TVL

$401.81M

The dYdX protocol provides advanced financial instruments like perpetual and margin trading within the DeFi ecosystem. The leading exchange operates without KYC, allowing for anonymous, trustless trading. It supports perpetual and margin trading, alongside lending and borrowing, and offers competitive fee structures and gas-free trading experiences.

The platform provides lower collateralization levels compared to competitors, increasing accessibility. dYdX also utilizes StarkWare for increased efficiency and lower transaction fees and allows for community contributions and governance.

Notably, dYdX also transitioned to an independent blockchain within the Cosmos ecosystem, enhancing performance and furthering decentralization.

Pros

Advanced trading options No KYC required Low fees Layer-2 scalability Dynamic interest rates Interoperability with Cosmos Cons

Complex for beginners Dependent on Ethereum Limited spot trading New chain transition challenges Ecosystem adaptation required Trade features: Perpetual trading, margin trading, decentralized order book, layer-2 scalability, cross-margin capabilities.

Earning features: Lending, borrowing, dynamic interest rates, trading rewards.

Security features: Self-custodial security, third-party audits, secured by Ethereum protocol.

Platform and ecosystem features: No KYC, open-source code, integration with Cosmos ecosystem, decentralized governance, off-chain order matching.

2. PancakeSwap

Best DeFi protocol for cost-effective transactions

Token

CAKE

Token max supply

450,000,000 CAKE

Market cap

$974.4M

TVL

$2.224B

PancakeSwap is a top-tier DeFi protocol. It focuses on the Binance Smart Chain blockchain, but supports a total of eight networks, including Ethereum.

PancakeSwap’s native crypto is CAKE, which has a total supply of 450 million tokens. This decentralized exchange leverages an automated market maker (AMM) model, allowing for direct, wallet-to-wallet trades without intermediaries, enhancing user control and security.

Moreover, it offers a range of services beyond simple trades, such as yield farming, staking, and lotteries, enabling users to earn rewards in various ways. Its user-friendly interface makes it accessible for beginners, while its innovative features, like the zkBridge technology, ensure secure and efficient transactions across different blockchain networks.

PancakeSwap’s growth is underscored by its status as the first billion-dollar project on the Binance Smart Chain and its continual upgrades, such as the current PancakeSwap V3, demonstrating its commitment to improving functionality and user experience.

Pros

Intuitive interface High APY for liquidity providers (LPs) Supports staking and farming NFT marketplace Cons

No mobile app No native crypto wallet Trade features: Instant crypto trading, liquidity pools, asset bridging, perpetual trading, and cryptocurrency purchasing.

Earning features: Farming, pools, liquid staking, simple staking.

Game and NFT features: Gaming marketplace, prediction market, NFT marketplace for NFTs on BNB Chain.

DeFi and ecosystem engagement: Governance, initial farm offerings (IFOs), gauge voting and revenue sharing, and farm booster.

3. De.Fi

Best DeFi protocol for monitoring

Token

DEFI

Token max supply

1,000,000,000 DEFI

Market cap

n/a

TVL

n/a

De.Fi provides detailed smart contract analysis to detect potential vulnerabilities and assign security scores. It offers an extensive dashboard for monitoring wallet transactions and balances, alongside powerful investment tools for analyzing and controlling positions in DeFi protocols, NFT collections, and lending markets.

Additionally, De.Fi includes specialized security features like the De.Fi Shield and Scanner for thorough contract examination. It also comes with user-friendly transaction tools such as secure crypto sending and De.Fi Swap for easy cryptocurrency exchanges across various blockchains, making it a well-rounded solution for utilizing the DeFi space safely and effectively.

Pros

Advanced security scanning Comprehensive dashboard Real-time analytics User-friendly interface Multi-blockchain support Cons

Complexity for beginners Technical knowledge needed Frequent updates required Smart contract and security features: Vulnerability scanning, smart contract security scoring, De.Fi Shield, De.Fi Scanner.

Portfolio and transaction monitoring features: Comprehensive dashboard, address book, wallet balance tracking, deposited and loaned balances overview.

Investment and exploration features: Market analysis tools, NFT portfolio management, exploration of DeFi opportunities.

Security and protection tools: Asset security assessments, approval checks, risk highlights for tokens and NFTs, customizable security settings.

Transaction and exchange features: Secure cryptocurrency sending, De.Fi Swap, slippage tolerance settings.

4. Uniswap

Best DeFi protocol for community

Token

UNI

Token max supply

1,000,000,000 UNI

Market cap

$8.86B

TVL

$5.543B

Uniswap is another leading decentralized exchange. The native token is UNI, which has a total supply of 1 billion tokens.

Governed by its users through the UNI token, it offers a community-driven experience, unlike centralized platforms. Uniswap’s liquidity pools facilitate secure and direct token swaps, ensuring users maintain complete control over their funds. Originally built on Ethereum, it now supports other Ethereum-compatible networks like Polygon and Optimism, offering lower transaction costs.

Uniswap’s simplicity makes it accessible for beginners while providing advanced features for experienced users. This is rare when it comes to DEXs, which can often be tricky to use and less straightforward than their CEX counterparts. Uniswap also boasts broad token availability and deep liquidity, reducing price impact on large trades.

Additionally, the DEX has integrated NFT trading, enhancing its offerings. With nearly 5 million unique wallet addresses and surpassing $1 trillion in trading volume, its popularity and reliability are evident.

Finally, Uniswap’s swap fees are competitive, especially when compared to centralized exchanges, and users can choose cheaper networks to avoid high Ethereum gas fees.

Pros

Easy-to-use interface Low-cost trades Multiple blockchain networks supported Cons

No mobile app High fees when purchasing crypto (third-party services) Trade features: Instant crypto trading, liquidity pools, asset bridging, cryptocurrency purchasing.

Earning features: Funding liquidity pools, swap fee earnings.

Game and NFT features: NFT marketplace, prediction market.

DeFi and ecosystem engagement: Governance, concentrated liquidity, transaction fee structure.

5. Curve Finance

Best DeFi protocol for stablecoins

Token

CRV

Token max supply

2,091,644,627 CRV

Market cap

$730.32M

TVL

$2.486B

Curve Finance is a leading decentralized exchange (DEX) on the Ethereum blockchain, specializing in the efficient trading of stablecoins and wrapped tokens like wBTC, renBTC, and sBTC. Founded by Michael Egorov, it has quickly risen to prominence, and is particularly famed for its innovative use of liquidity pools and automated market maker (AMM) systems. These allow users to earn high annual interest rates — over 300% in some pools — on deposited cryptocurrency.

The platform distinguishes itself with its unique bonding curve. This is optimized for stablecoins to reduce slippage, allowing significant trades with minimal price impact. This has positioned Curve as a vital component in the DeFi space, especially for those interested in liquidity mining and yield farming.

Curve Finance operates as a decentralized autonomous organization (DAO), with its governance token CRV enabling holders to vote on changes and proposals. This shift to a DAO structure allows Curve to operate with enhanced transparency and community-driven development. Despite its complexity and the potential for impermanent loss, Curve Finance offers significant opportunities for liquidity providers and traders, underlined by security measures including multiple code audits and bug bounties to safeguard user assets.

Pros

Specializes in stablecoins Reduced slippage Governed by DAO Multiple security audits Bug bounties for added safety Cons

Complex for beginners Focused mainly on stablecoins and wrapped tokens Reliance on Ethereum blockchain, leading to potential high gas fees Trade features: Stablecoin specialization, efficient liquidity pools, unique bonding curve, minimal slippage in trades.

Earning features: High annual interest rates from liquidity pools, rewards in CRV tokens, participation in yield farming.

Security features: Multiple security audits, bug bounties, governed by decentralized autonomous organization (DAO).

DeFi and ecosystem engagement: Governance via CRV token, high total value locked (TVL), support for various wrapped tokens.

6. Balancer

Best DeFi protocol for multi-tokens pools

Token

BAL

Token max supply

62,244,253 BAL

Market cap

$268.21M

TVL

$1.242B

Balancer is a versatile and innovative DeFi platform that redefines the concept of decentralized exchanges (DEXs) by combining elements of automated market makers (AMMs) and index funds.

Unlike traditional DEXs — which typically focus on two-token liquidity pools — Balancer’s USP lies in its ability to maintain a balanced portfolio through automatic rebalancing, adjusting the pool’s asset allocations in response to market price changes.

Balancer supports three types of pools: public pools, where anyone can add liquidity and earn trading fees; private pools, where only the creator can contribute liquidity and set parameters; and smart pools, which are private pools with adjustable parameters controlled by a smart contract. This flexibility caters to a wide range of user preferences and risk tolerances.

Furthermore, Balancer’s architecture is designed to function on Ethereum and also on six additional blockchain networks, expanding its accessibility and interoperability within DeFi ecosystems. By providing a decentralized platform for multi-asset liquidity, Balancer contributes significantly to the efficiency of the cryptocurrency market.

Pros

Multi-token pools Automated rebalancing Interoperability Cons

Complex for beginners Limited on smaller chains Trade features: Multi-token pools, automated portfolio rebalancing, customizable pool types (public, private, smart), wide asset variety, minimal slippage through dynamic trading fees.

Earning features: Rewards in BAL tokens, high yield from liquidity provision, participation in liquidity mining, diversified income streams through various pool types.

Security features: Regular security audits, bug bounty programs, non-custodial asset management, transparent smart contract operations.

DeFi and ecosystem engagement: Governance via BAL token, significant total value locked (TVL), interoperability across multiple blockchains, support for a variety of digital assets and wrapped tokens.

7. Summer.fi

Best DeFi protocol for services

Token

Summer.fi

Token max supply

N/A

Market cap

N/A

TVL

$5.345b

Summer.fi, initially known as Oasis.app and one of the earliest MakerDAO projects from 2016, has evolved significantly beyond its original scope.

After Maker became fully decentralized, Summer.fi emerged as a standalone platform, dedicated to establishing a highly trusted application for DeFi capital deployment.

It now transcends being merely an interface for the Maker Protocol. It aims to be the most secure place for engaging with DeFi, providing users with advanced automation features like stop-loss, auto-buy, and auto-sell, as well as strategies such as Constant Multiples for optimizing Vault performance. If your Vault’s collateralization ratio hits your Sell Trigger, Constant Multiple will execute.

Summer.fi prioritizes user experience, offering clear insights into positions, returns, and associated risks, backed by a comprehensive knowledge base reflecting community feedback.

Pros

Comprehensive DeFi services Advanced automation features, (stop-loss, take-profit, auto-buy, etc.) User-friendly interface Integration with multiple protocols (Aave and Maker) Cons

Complex for new users Limited to ERC-20 tokens Borrowing features: Flexible repayment schedules, diverse collateral types, integrated with multiple protocols like Aave and Ajna, protection against market volatility through the Oracle Security Module and constant updates from Chainlink.

Multiplying features: Increase or decrease collateral exposure in one transaction, use borrowed funds to buy more collateral, integration with liquid platforms and the 1inch DEX aggregator for best execution prices, dedicated interface for managing positions.

Earning features: Self-custody solutions for yield earning, compatibility with Aave and Maker protocols, increase yield from StETH, participate in the Dai Savings Rate for passive income.

Automation features: Stop-loss to prevent liquidations, take-profit for efficient exits, auto-buy and auto-sell for Vault management, Constant Multiple to maintain predefined exposure levels.

Integration and partnerships: Support for various wallets like MetaMask and Ledger, integration with the 1inch Network for efficient token swaps, launched on Optimism layer-2 for reduced transaction costs, Ajna Protocol integration for curated borrowing and lending pools.

8. Aave

Best DeFi protocol for liquidity

Token

AAVE

Token max supply

16,000,000 AAVE

Market cap

$1.711B

TVL

$10.564B

Aave (AAVE) is a pioneering entity in the DeFi sector. The comprehensive lending platform boasts a significant Total Value Locked (TVL), which surpasses $10 billion in crypto collateral.

Aave enables users to lend and borrow a wide array of tokens across multiple ecosystems, ensuring a versatile and inclusive financial experience.

The platform’s latest iteration, Aave V3, expands its reach beyond Ethereum to include 10 different blockchain networks, further solidifying its position as a key player in DeFi by enhancing accessibility and providing a range of options for its diverse user base.

Pros

High TVL Wide range of tokens Multi-chain accessibility Flash loans availability Governance via AAVE token Cons

Complexity for beginners High gas fees on Ethereum Risk of liquidation Trade features: Flash loans, real-time interest accrual, stable and variable interest rates, Ethereum network integration, multi-asset collateral support.

Earning features: aTokens for deposit interest, decentralized lending and borrowing, yield optimization strategies, liquidity mining.

Security features: Over-collateralization of loans, smart contract audits, safety module for risk mitigation, bug bounties for platform integrity.

Platform and ecosystem features: Governance via AAVE tokens, layer-2 solutions for reduced fees, decentralized autonomous organization (DAO) structure, no KYC requirements, multi-chain accessibility.

9. MakerDAO

Best DeFi protocol for generating a stablecoin

Token

MKR

Token max supply

1,005,577 MKR

Market cap

$2.686B

TVL

$7B

MakerDAO is a pioneering DeFi platform that has revolutionized the way users engage with digital assets. The platform provides a decentralized borrowing and lending system with its stablecoin, DAI, at the core.

Built on the Ethereum blockchain, it allows users to leverage a variety of cryptocurrencies as collateral to generate DAI, maintaining stability through rigorous governance by MKR token holders.

The platform distinguishes itself with features like over-collateralization to ensure loan security, and a dual-rate model offering users the choice between stable and variable interest rates. However, users must navigate complexities such as liquidation risks and market volatility.

As MakerDAO evolves, it continues to solidify its status as a cornerstone of the DeFi landscape with the introduction of upgrades like V3 and the addition of the GHO stablecoin — balancing user empowerment with the intricate dynamics of decentralized finance.

Pros

Decentralized lending DAI stability Ethereum-based Governance by MKR Over-collateralization Variable interest rates Cons

Complexity High gas fees Liquidation risks Trade features: Flash loans, stable and variable interest rates, real-time aTokens, multi-currency collateral, governance-driven updates.

Earning features: Interest on deposits, participation in governance, yield farming opportunities, dynamic interest rates.

Security features: Over-collateralization, liquidation mechanisms, community governance for risk management, security modules for asset protection.

Platform and ecosystem features: Decentralized borrowing and lending, Ethereum-based, MKR token for governance, integration with multiple crypto assets, open-source development, Maker Vaults for asset management.

10. Compound Finance

Best DeFi protocol for staking

Token

COMP

Token max supply

10,000,000 COMP

Market cap

$487.27M

TVL

$2.668B

Compound Finance is a prominent decentralized lending platform operating on the Ethereum blockchain, known for pioneering the DeFi lending space.

Established by Robert Leshner and Geoffrey Hayes in 2018, Compound simplifies the process of borrowing and lending cryptocurrencies without intermediaries, allowing over $2 billion in assets to be locked on its platform.

Unique for its innovations, such as yield farming and governance through COMP tokens, the platform aims to provide financial inclusion, eliminating traditional transaction minimums and credit checks.

While offering competitive returns through real-time interest rates, users engaging with Compound and its governance token, COMP, must be cautious of market volatility and conduct in-depth research prior to investment.

Pros

Decentralized borrowing and lending No transaction minimums User-friendly interface Supports multiple ERC-20 assets Yield farming opportunities Cons

Market volatility risks Requires over-collateralization Complexity for new users High gas fees on Ethereum Trade features: Real-time interest rate adjustments, supports diverse ERC-20 tokens, and a user-centric lending and borrowing system.

Earning features: Yield farming with COMP tokens, competitive APR for lenders, dynamic interest rates based on market conditions.

Security features: Extensive security audits (Trail of Bits, OpenZeppelin), economic risk analysis by Gauntlet, transparent and verifiable contracts.

DeFi and ecosystem engagement: Decentralized governance with COMP tokens, financial inclusion without traditional verifications, continuous platform innovation and updates.

11. Lido

Best DeFi protocol for ETH staking

Token

LDO

Token max supply

1,000,000,000 LDO

Market cap

$2.215B

TVL

$34.445B

Lido Finance is a DeFi staking protocol offering user-friendly, semi-custodial staking services across multiple cryptocurrencies. Known for its simple interface and decentralized structure, Lido allows users to stake their assets and receive liquid staking tokens, such as stETH, which can be utilized in the broader DeFi ecosystem for yield farming.

Supported by major players in DeFi and endorsed for its reasonable fees and rewarding referral program, Lido maximizes decentralization through its governance token, LDO, allowing stakeholders to partake in decision-making. While Lido streamlines the staking process, users should consider the semi-custodial nature, the staking rewards fees, and potential tax implications associated with rewards.

Pros

User-friendly interface Liquid staking tokens Decentralized governance Supported by DeFi leaders Cons

Semi-custodial service Staking rewards fees Potential tax implications Staking features: Easy and unrestricted staking, maximized earning potential, liquid staking tokens for yield farming.

Earning features: Daily staking rewards, assets used as collateral for lending and yield farming, participation in governance for reward optimization.

Security features: Smart contracts audited by Quantstamp and Sigma Prime, semi-custodial nature maintains user control.

DeFi and ecosystem engagement: Governance via LDO tokens, broad DeFi integration, supports multiple blockchains including Ethereum.

DeFi protocols comparedProtocolTypeTVLTokenNo. of blockchains supportedPancakeSwapDEX$2.224BCAKE9UniswapDEX$5.543BUNI8CurveDEX$2.486BCRV14BalancerDEX$1.242BBAL8Summer.fiDEX$5.345bsummer.fi4AaveLending$10.564BAAVE12MakerDAOLending$7BMKR1CompoundLending$2.668BCOMP4dYdXDEX$401.81MdYdX1LidoStaking$34.445BLDO5De.FiTracker and walletn/aDEFI15What are DeFi protocols?DeFi protocols are sets of rules, procedures, and codes that govern decentralized finance (DeFi) systems, enabling users to engage in activities such as trading, lending, and staking tokens within blockchain ecosystems. 

DeFi represents a paradigm shift leveraging blockchain technology, primarily Ethereum, to cultivate an open, permissionless, and borderless financial ecosystem. Unlike traditional systems, developers write smart contracts to deploy DeFi protocols that enable peer-to-peer interactions without intermediaries. By adhering to the same set of rules, DeFi protocols ensure a standardized experience for all participants. 

An example of a DeFi protocol is MakerDAO. The popular DeFi lending platform allows users to borrow against their crypto assets by locking them in exchange for a stablecoin, DAI, thus offering more predictable repayment terms despite the volatility of crypto markets. 

Other protocols allow you to earn a passive income by generating yield from your staked assets. One popular example is the Lido protocol, which allows you to earn on stETH.  Platforms like Lido aim to offer the highest APY on crypto staking, allowing users to maximize returns on their staked assets within the Ethereum ecosystem.

The total value locked (TVL) is often used as a metric to gauge a protocol’s adoption and utility, with MakerDAO being one of the largest by TVL, highlighting its significant role in DeFi.

In 2026, new and more efficient technologies are being developed. For instance, some protocols incorporate asynchronous smart contracts, which allow transactions and agreements to be executed without needing all parties to be present or online simultaneously. This helps streamline operations within networks like Ethereum.

According to DeFiLlama, the top protocol categories are lending, DEXs, bridges, CDP (protocols that mint their own stablecoin using collateralized lending), and restaking. 

Protocol categories: DeFiLlamaWhy do you need DeFi protocols?DeFi allows decentralized apps (DApps) and platforms to provide services like crypto lending and crypto yield earning through staking. Users can participate in AMM (automated market maker) systems to improve liquidity. 

These features offer a fertile ground for startups to innovate beyond conventional financial products, fostering rapid experimentation and potential disruption. The global accessibility facilitated by DeFi platforms makes them a significant tool for financial inclusion, allowing startups to reach a worldwide audience. 

The interoperability among various DeFi protocols enhances this further, enabling seamless integration of services like web3 gaming and metaverse tokens, broadening the scope of what blockchain startups can achieve.

The total value locked (TVL) in DeFi platforms serves as a metric of trust and utility, indicating the number of cryptocurrencies staked, lent, or committed to liquidity pools, highlighting the ecosystem’s growth and stability.

By eliminating intermediaries, DeFi significantly lowers transaction costs, making it an attractive model for startups, especially in crypto lending and yield generation. Instead of being worried about your credit score, you can apply for a crypto loan with fewer restrictions than in TradFi. This reduction in costs, combined with the potential for high crypto yield through mechanisms like staking, positions DeFi as an increasingly popular option for both entrepreneurs and investors in the crypto market.

How do DeFi protocols work?DeFi protocols function by leveraging blockchain technology. While most of them are based on Ethereum, some may also support other networks. At the heart of these services are smart contracts, self-executing contracts with the terms of the agreement directly written into code, which facilitate, verify, and enforce the negotiation or performance of a contract.

DeFi, however, requires thorough research and understanding of several factors, including security, liquidity, and the platform’s governance structure. It’s important to assess the user experience, the degree of interoperability with other DApps and blockchain systems, and the level of community involvement in decision-making processes.

1. Decentralized apps (DApps)Users can engage with various DeFi platforms or DApps to access a wide range of financial services. 

One common way to participate is through crypto lending on platforms. Protocols such as Aave or Compound allow you to deposit cryptocurrencies to earn interest. The earnings are measured as Annual Percentage Yield (APY), which is a volatile percentage that corresponds to the market’s demands.

2. Liquidity miningAnother popular DeFi activity is liquidity mining. You can provide liquidity to decentralized exchanges (DEXs) by depositing your assets into liquidity pools. This deposit is usually made for a pair of assets, such as ETH-USDT, but it can be anything else.

In return, you earn rewards, often in the platform’s native tokens. This process is critical for ensuring there is enough market liquidity for trading and is facilitated by AMMs, algorithms used by DEXs to determine the price of tokens and facilitate trades.

3. Swaps (trading)Trading on DEXs is another key function of DeFi protocols. These platforms allow users to trade cryptocurrencies directly with others in a more private and accessible manner than on centralized exchanges. 

This not only supports the decentralized ethos of blockchain but also contributes to the Total Value Locked (TVL).

Should you use DeFi protocols?Pros  Earn money: You can make your crypto work for you. Put your assets in DeFi platforms to earn interest or rewards. Trade easily: Swap cryptocurrencies directly with others. No need for a middleman. More control: You’re in charge of your money. No bank or institution can block your transactions. Open to everyone: Anyone with an internet connection can join. It’s global and inclusive. Transparent: Everything is recorded on the blockchain. You can see all transactions. New opportunities: Explore new financial services like crypto lending or web3 gaming. Cons  Risky: Crypto values can change fast. Your investments can shrink quickly. Complicated: Some DeFi stuff is hard to understand. It’s not always beginner-friendly. Security issues: Hacks happen. If a DeFi platform gets attacked, you might lose your money. No customer support: If you have a problem, there’s no customer service to call. Research needed: You need to do your homework before investing. Not all platforms are safe. High fees: Sometimes, you’ll pay a lot to make transactions, especially when the network is busy. Could DeFi replace traditional finance?Decentralized finance has the potential to usurp traditional institutions, specifically TradFi. Decentralized finance enables users to transact securely, anonymously, and efficiently and is thus likely to gain popularity as web3 and crypto adoption grows. From crypto lending to staking to market makers, DeFi is exciting but also risky.

Do not interact with any DeFi protocols until you have developed a solid plan and are entirely comfortable with the mechanisms of the platform. Always be aware of the potential for losses, and never invest more than you can afford to lose.

Frequently asked questions What is the most popular DeFi protocol? The most popular DeFi protocol is often considered to be MakerDAO. It frequently leads in terms of Total Value Locked (TVL) and has a wide usage across the DeFi ecosystem. MakerDAO’s platform revolves around the generation of DAI, a stablecoin pegged to the U.S. dollar, and enables decentralized borrowing and saving. Its popularity stems from its innovative approach to maintaining currency stability and providing a decentralized credit service.

What are the top five DeFi tokens? The top five DeFi tokens typically include Maker (MKR), Aave (AAVE), Compound (COMP), Uniswap (UNI), and PancakeSwap (CAKE), based on their market capitalization and impact on the DeFi space. These tokens facilitate governance of their respective platforms, offering holders voting rights on decisions and upgrades. They are integral to the operations of these platforms, from lending and borrowing to providing liquidity and facilitating decentralized trading.

What is TVL in DeFi protocols? Total Value Locked (TVL) in DeFi protocols refers to the total amount of assets currently being staked, lent, or deposited within a DeFi protocol’s smart contracts. It serves as a metric to gauge the overall health and growth of the DeFi market, indicating how much money is actively used in these decentralized financial services. A higher TVL suggests greater user trust and utility of the DeFi ecosystem.

How many DeFi protocols are there? The number of DeFi protocols is constantly growing as the space evolves and new projects are launched. There are hundreds of DeFi protocols across various blockchains, catering to different aspects of decentralized finance such as lending, borrowing, trading, and liquidity provision. The exact number can vary daily due to the dynamic nature of the crypto and DeFi industries.

How many DeFi protocols are there? The number of DeFi protocols is constantly growing as the space evolves and new projects are launched. There are hundreds of DeFi protocols across various blockchains, catering to different aspects of decentralized finance such as lending, borrowing, trading, and liquidity provision. The exact number can vary daily due to the dynamic nature of the crypto and DeFi industries.

Is TVL a good metric? TVL is a good metric for understanding the scale and usage of a DeFi protocol, as it reflects the total capital committed by users. However, it should not be the sole metric for assessing a protocol’s value or success, as it does not account for risks, decentralization level, or liquidity. It’s best used in combination with other factors like user growth, transaction volume, and protocol governance for a comprehensive evaluation.

What is a good FDV TVL ratio? A good FDV (Fully Diluted Valuation) to TVL (Total Value Locked) ratio for a DeFi project is typically below one, indicating that the project’s market valuation is not excessively higher than the value of assets locked in the protocol. Lower FDV/TVL ratios suggest that the protocol is undervalued or efficiently using its capital, which can be attractive to investors. However, this ratio should be considered alongside other metrics and project fundamentals for a complete analysis.

What is the TVL formula? The TVL formula in DeFi protocols calculates the total value of all assets deposited in the protocol’s smart contracts, which can include cryptocurrencies, stablecoins, and other tokens. It aggregates the value of these assets, often converting them to a common currency like USD for a standardized measure. The formula is the sum of the value of each type of asset multiplied by its current market price.

How to calculate FDV? The Fully Diluted Valuation (FDV) is calculated by taking the total supply of a token (both circulating and non-circulating) and multiplying it by the current price of the token. This gives an idea of what the market cap would be if all tokens were in circulation and trading at the current price. It’s an important metric for understanding the potential market size and investment risk of a cryptocurrency or DeFi project.