protocol

According to official news, Frax Finance announced the launch of the FRAX burn engine, which will use protocol revenue for programmatic buybacks and the destruction of FRAX. According to its third-quarter report, the revenue generated from frxETH will flow into this engine in the fourth quarter.The total locked value of frxETH is currently 120 million dollars, and from the ETH staking revenue it generates, Frax retains 8% as a protocol fee, 100% of which will be used to purchase FRAX on the open market and destroy it.

According to Crypto Briefing, Aave founder Stani Kulechov stated at the DAS London conference that DeFi lending protocols need to introduce a "circuit breaker" mechanism, as the consequences of oracle failures could take years to resolve.He pointed out that the over-reliance on immutable code systems lacks contingency plans. When oracle data deviates, the protocol may trigger liquidations based on incorrect prices, and the immutable nature can lead to irreparable failures. The circuit breaker mechanism draws from traditional markets' practice of halting trading during extreme conditions, allowing protocols to pause operations until the issue is identified.

Ethereum developer Marchhill submitted the draft EIP-8437, proposing to propagate proof wrapper data through the eth/73 protocol and introducing an optional mode that allows transactions to submit raw signatures to the aggregator without pre-generating STARK proofs.This proposal supports the direct propagation of certified packages with transactions and performs independent checks of specified programs in resource-constrained sandboxes to verify witness data. The new program does not require the development of native adapters for each signature scheme separately. Additionally, the proposal plans to limit the batch queue size, clean up expired transactions, and recheck records before formally generating proofs to support failure retries.Currently, the proposal is still in the Draft stage and has not yet been merged. The developer pointed out that VM and key binding consistency verification, cryptographic verification, and performance testing are still incomplete, and benchmarking has not yet been conducted.

Layer 2 network Katana plans to launch a buyback mechanism supported by protocol revenue for KAT stakers. The network will eliminate the emission voting mechanism on November 17 and shorten the unstaking cooldown period.The buyback will be initiated separately, and full on-chain automation will be achieved subsequently.

The yield protocol Hyperwave on Hyperliquid announced that due to rising operational costs and regulatory uncertainties, the project has decided to gradually cease operations. The protocol will officially close on December 16, and users are advised to withdraw their funds before then to facilitate faster withdrawals.After the closure, any remaining net asset value will be returned to the wallets holding the treasury tokens. Currently, all treasuries have been switched to a state that only allows fund withdrawals, including GWAVE, and users can unstake at any time. The treasury will continue to generate yields while converting funds into underlying assets and preparing for user withdrawals.Additionally, all income generated before the protocol's closure will be used to buy back and destroy HWAVE. The project team reminds users to pay attention to security and be wary of phishing links that may appear during the closure period. If there are any questions regarding the closure arrangements, users can contact the official support team via Discord or in-app.

On Tuesday, the cross-chain bridge protocol Across Protocol issued a warning on platform X, stating that it is investigating a potential security incident and reminding users not to access its applications or connect wallets temporarily, nor to sign transactions or authorize. The protocol did not specify the exact nature of the incident and did not confirm whether its website had been compromised. Across is a cross-chain bridge protocol that allows users to transfer digital assets between Ethereum and other blockchain networks.Multiple users reported financial losses on X. One user claimed to have lost 9,000 USDC, while another user reported losing 7,053 USDT through seven transactions on the Plasma network. A third user stated that their wallet was emptied after multiple uses of the cross-chain bridge and claimed that the website had been compromised. Across has requested transaction details from these users to conduct an investigation.

Aave V4's Global Dollar Hub has supported PAXG as collateral, allowing users to borrow USDG and PAXG.

According to official news from Solana, the Solana infrastructure company Helius today launched the permissionless privacy protocol Solana Privacy Rings on the Solana mainnet. Developers can add privacy features to new and existing Solana applications through the API, laying the foundation for private payments, privacy DeFi, and enterprise compliance privacy.Privacy Rings are programmable shielded pools, with assets and amounts encrypted and stored on-chain, while wallet addresses remain visible. Users can decrypt balances by viewing the viewing key, supporting SOL, SPL tokens, and Token-2022 tokens, with ZK proof verification taking only a few hundred milliseconds. Its core program and ZK circuits have been audited by Certora, OtterSec, and ZK Security. The institution-oriented permissioned Custom Rings are currently under audit and are expected to go live on the mainnet in the coming weeks, supporting compliance features such as KYC whitelisting, sanctions screening, and fund freezing and recovery.Currently, Decrypt, Ore, and others have integrated, while teams such as Backpack, DFlow, Jupiter, and Squads are in the process of integration, with Chainalysis, Elliptic, and others providing compliance support for wallet screening.

According to official news, HIVE Protocol announced that it will officially launch on November 12 at 08:08 (UTC+8). This is an on-chain micro-strategy experiment based on the Web3 framework, aimed at exploring the community-built asset aggregation path for BNB.The protocol is initiated by DBCC (DAOBase Chinese Community), built on BEE, and receives technical and transparency support from DAOBase's "Build on BEE" policy, but it is not an official product of DAOBase. The protocol uses BNB as the core reserve asset and executes through smart contracts, featuring real-time verification of on-chain data, liquidity permission destruction, and mechanism automation, driven by community consensus to promote asset aggregation.According to the project plan, HIVE Protocol has a clear lifecycle, and after completing phase goals, the reserve assets will flow back into the ecosystem. The project positions this experiment as a practice of DAOBase's concept of "not just an aggregation engine for BNB, but also a builder of the BNB ecosystem," and will subsequently be subject to market and community evaluation.

On November 9, Apex, the founder of Veil, announced that the team has decided to shut down Veil. Deposits will cease immediately, while the front end and relay will continue to operate until December 21, 2026. After that, withdrawals can still be completed through command line tools. Apex stated that after two years of development, the privacy solution they hoped to achieve has not been scaled. The protocol experienced a strong usage phase but was unable to sustain it. The privacy strength of Veil relies on usage, and a decline in usage will weaken privacy. In recent months, the protocol has not consistently delivered its core value as set. Public information shows that Veil is a zero-knowledge privacy protocol supported by Coinbase Ventures.Apex stated that despite not resolving the initial issues, they still view privacy as the most challenging problem in the cryptocurrency industry to date and thanked Base, the Coinbase team, and all parties who held, used, or supported Veil for their assistance over the past two years. The shutdown also means that support for the VEIL token will stop on the same day, including staking rewards and liquidity provider incentives, and the tokens held by the treasury will be destroyed. Apex mentioned that they will not leave the industry and remain optimistic about cryptocurrencies, Ethereum, and Base, but the specific direction for the next phase of development has not yet been determined. They indicated that Veil had previously occupied all their energy, and future projects would need to achieve the same level of conviction before proceeding.

Cosmos Labs has donated the cross-chain communication protocol IBC to the decentralized trust project under the Linux Foundation (Linux Foundation Decentralized Trust).The initial technical committee established after the transfer of IBC consists of seven members, with Cosmos Labs occupying five seats, and the remaining maintainers coming from Datachain and OpenZeppelin.

IRIS plans to launch fixed-rate lending based on SparkLend on November 10, allowing borrowers to customize the term with the rate difference borne by the quoting party.

Loopscale has restored all deposit, withdrawal, and complete loan management functions for all vaults after the attack incident, including the USDC Genesis vault.

According to official news from Bitget, the Bitget ecosystem tokenized U.S. stock protocol Reality has reached a strategic cooperation with the DeFi reward infrastructure Merkl. Both parties will use Merkl's reward forwarding function to identify the actual holders of rToken deployed in supported DeFi protocols. Users can still receive dividends in stablecoin form according to the rules, even if they use rToken for lending, liquidity pools, or staking in DeFi scenarios.Pablo Veyrat, CEO and co-founder of Merkl, stated that one major challenge facing DeFi assets is how to identify the actual holders behind each position. Merkl's reward forwarding technology can penetrate multiple layers of nested smart contracts to identify the underlying asset holding relationships, ensuring that dividends are accurately distributed to eligible holders.Gracy Chen, CEO of Bitget, stated that the value of tokenized stocks should not be limited to trading. Even if users invest rToken into DeFi applications, they should still be able to continue receiving eligible dividends. This cooperation with Merkl will jointly solve this problem, allowing tokenized stocks to play a greater role in everyday financial applications.According to a report from DeFiLlama, the cumulative trading volume of rToken reached $1.16 billion from June to July 2026; in July 2026, the number of users trading both crypto assets and rToken increased by 23.54% month-over-month. This cooperation will further promote the extension of rToken from trading scenarios to the DeFi ecosystem, enriching the on-chain application scenarios of tokenized stocks.

Uniswap posted on platform X that the Permissioned Pools Hook is a new standard that introduces permitted assets into automated market makers (AMM) and performs compliance checks at the protocol level.

The Solana-based lending protocol Loopscale stated that it has been continuously targeted by attackers over the past week, with the protocol's API receiving more than 30,000 malicious requests daily, but all user funds deposited are currently safe.After the security system detected a significant escalation in the attacks, the team quickly suspended protocol activities to mitigate the impact. The attack attempts primarily targeted the SOL and USDC Genesis Vaults, and the related vaults have been replenished, with no losses reported for user deposits.Loopscale stated that it will not resume normal operations until the scope of the attack is fully clarified and further security enhancements are completed. The protocol interface will be reopened soon, and the repayment function will be restored as quickly as possible to reduce the risk of unexpected liquidations. The team has disclosed four associated addresses and stated that it is working with federal law enforcement and security professionals, and will continue to release important updates.

On-chain lottery protocol Megapot announced that it will close the official application megapot.io and the Telegram application on December 1, shifting its focus to the enterprise-level lottery platform Prizerail, which operates independently of the protocol. Public information shows that the project has received support from Dragonfly and Coinbase Ventures. Megapot stated that the protocol itself will not change, remaining fully on-chain and permissionless, and applications or tokens built on this protocol can continue to operate. As of October 29, the official website and Telegram mini-program have stopped ticket sales; the liquidity supporter program, registration rewards, referral rewards, and guaranteed bonuses have all ended, and the points program is suspended. Bonuses that have been earned can still be claimed, and users can currently withdraw their balances without identity verification.Megapot explained that after December 1, on-chain lottery bonuses and referral fees can still be claimed through Basescan or third-party applications; guaranteed bonuses belong to off-chain projects and must be claimed before that date, with bonuses in the form of free lottery tickets available for claim in USDC. Accounts logged in with email, X, or Telegram must withdraw funds before December 1, after which the accounts will be unavailable; users who connect their wallets independently will still own their lottery tickets and bonuses. Liquidity providers can continue to provide liquidity or withdraw at any time, and the team stated that no new supporter programs will be launched. The data interface is currently considered deprecated, and the team will no longer maintain it, with services set to stop later.Regarding the reasons for the adjustment, Megapot stated that most applications use lotteries as rewards for deposits, transactions, and referrals, with the majority of the protocol's transaction volume coming from this usage. To serve larger-scale applications, the team launched the enterprise brand Prizerail, which generally requires compliance with U.S. regulations, provides legal memorandums to payment service providers, and does not wish to be associated with betting. The team stated that they have communicated with legal advisors and will provide the above capabilities independently of Megapot. Among the 20 potential clients generated after the introduction in Singapore, 19 chose Prizerail, and only 1 chose Megapot. There are already dozens of independent applications on the protocol, which have paid out over $1 million in bonuses, with ticket sales increasing threefold in the past three months, and the liquidity pool in the past month not relying on incentives for the first time.

The prediction market revenue protocol Robin Markets announced the shutdown of V1. The team stated that the initial version of the revenue product did not achieve the expected adoption and will be gradually phased out to allow for the re-launch of an improved version. The points program, revenue guarantees, and matching rewards will cease along with V1; these mechanisms were originally intended to incentivize liquidity but did not perform as expected. Existing products will continue to operate until the new version is launched by the end of this year.The team outlined two main issues. The first is position matching: V1 needs to match opposing YES and NO positions within each market's liquidity pool to combine funds into USDC for use, and the efficiency of funds depends on whether the distribution on both sides is relatively balanced. This creates a first-mover disadvantage, as tokens deposited early often remain idle before a counterparty appears, resulting in thin liquidity pools, and early users frequently cannot earn returns. The second issue is changes in the revenue environment: at the project's launch, the yield on USDC.e on Polygon was still considerable, and there was a partnership with Yearn; after October 10, more yield channels on Polygon shrank or lost competitiveness, weakening the original sources of revenue and placing greater pressure on subsidy guarantees. The team stated that insufficient matching and weakening revenue mutually influence each other, hindering the product's actual operation.Robin Markets positions itself as the capital efficiency layer of the prediction market, allowing users to stake Polymarket outcome tokens on Polygon while earning returns without losing their original market exposure. Public information shows that the project previously completed a $475,000 angel round of financing, with investors including Fabric VC, Animoca Brands, ATKA Incubator, John Lilic, Stefan D. George, and angel investors from Hilbert Capital, LayerZero, and others. The team stated that the next version will directly address the issues of matching mechanisms and revenue sources.

The NEAR Protocol governance body House of Stake passed the HSP-029 proposal with approximately 99.96% support, with a voting power of 3.29 million veNEAR. The proposal aims to gradually reduce the annual token issuance cap from 2.5% to 1.6% over 24 months, with an average monthly decrease of 0.0375 percentage points. The proposal was initiated by Sal Ternullo, CEO of the Nasdaq-listed company SVRN, and only adjusts one protocol parameter, while the existing distribution ratio remains unchanged: 90% of newly issued tokens are allocated to staking participants, and 10% go to the treasury.The proposal also requires approval from the House of Stake Security Committee and will be implemented after a preparation period of about 90 days and once validators complete the protocol upgrade. The model estimates that, based on the original issuance cap, approximately 11.8 million NEAR could be issued less in the first two years after implementation, and about 66.1 million less over six years. After full implementation, the daily issuance is expected to decrease from about 89,500 to 57,300; under the assumption of similar staking participation rates, the gross staking yield is expected to drop from 5.268% to 3.372%, and validator commission income is expected to decrease by 36%.

The stablecoin protocol Sky Protocol's official account posted on November 3, revealing the financial highlights for the third quarter. The official statement indicated that net income was positive for the sixth consecutive quarter, profit margins expanded, and funds continued to be transferred to Sky Reserves.The key data listed by the official source includes: total revenue of $99.29 million, a year-on-year increase of 14.2%; net income of $37.19 million, a quarter-on-quarter increase of 11.8%, marking the sixth consecutive quarter of positive net income. The net income margin was 37.5%, up from 31.0% in the second quarter. The protocol's collateral size was $11.41 billion, a year-on-year increase of 25.3%.During the same period, $28.47 million was transferred to Sky Reserves, with a balance of $85.08 million at the end of the quarter. The supply of sUSDS was $4.52 billion, a year-on-year increase of 118%. The post included a link to the Sky Ecosystem Q3 2026 report published by the Sky Frontier Foundation.