DeFi | Crypto

A warning from one of decentralized finance’s (DeFi) early security figures has turned a difficult stretch of hacks into a broader test of how the industry can defend itself against artificial intelligence (AI). On May 27, Manuel Aráoz, co-founder and former chief technology officer of OpenZeppelin, advised investors to exit DeFi positions, including exposure to […] The post Have AI agents made the entire $148 billion DeFi sector unsafe? appeared first on CryptoSlate.

RWA standard ERC-7943 reaches final stage as Ethereum builders rethink how institutional finance move onchain. For years, crypto has thrived on speculative capital flows and the explosive popularity of decentralized finance (DeFi) tokens and applications. That still holds true for rising sectors such as perpetual decentralized exchanges and prediction markets. But as Wall Street pushes deeper into tokenized real-world assets (RWAs), not all of the industry’s existing systems cater to the kinds of financial products institutions want to bring onchain. An author of the newly finalized ERC-7943 (uRWA) token standard said that the fragmented infrastructure powering much of DeFi wasn’t designed for regulated financial assets, which often require identity frameworks and interoperability standards. Read more

DeFi protocols are increasingly adapting to host regulated, tokenized assets as tokenization is projected to bring trillions of dollars onchain.

Automated yield protocols built DeFi's most persuasive retail pitch that depositing into a vault was all a user needed to do, with the protocol handling everything else. For users wanting exposure to Curve's boosted yields without manually managing CRV locks, vote power, wrappers, gauges, and incentives, Stake DAO offered a product that packaged the full […] The post DeFi’s automated yield protocols were built for retail, now they just add another layer of risk appeared first on CryptoSlate.

US commercial and industrial lending reached $2.89 trillion at commercial banks for the week ending May 13, up roughly $183 billion year-to-date and 8.19% above year-ago levels. Corporate America has borrowed heavily through rising rates and continues borrowing into tightening bank credit conditions, adding more to bank balance sheets in the first five months of […] The post Aave is bank-sized, but $2.9T in corporate loans reveals the risk DeFi still can’t price appeared first on CryptoSlate.

Socket's May 24 disclosure of TrapDoor found more than 34 malicious packages and over 384 related versions spread across npm, PyPI, and Crates.io, each targeting the developers who build and maintain protocols, and the credentials that govern access to the systems around them. What TrapDoor built is a route from a single developer's compromised machine […] The post The next big DeFi exploit will start before the code is deployed appeared first on CryptoSlate.

Repeated bridge exploits and shrinking yields are making institutions question whether DeFi’s risks still justify the returns, says Symbiotic’s Putiatin. Security exploits are weighing on institutional appetite for decentralized finance (DeFi), even as broader crypto adoption continues through stablecoins and tokenized assets. In an April research note, JPMorgan analysts said that bridge security remains a challenge for the industry, raising questions on whether DeFi can grow to support further institutional adoption.  The recent exploit on the Versus-Ethereum bridge was the eighth major attack against DeFi bridges in 2026 so far, with cumulative losses totalling $328.6 million. Read more

Cardano's next hard fork is arriving at a moment when crypto markets no longer reward blockchains for roadmap promises alone, especially as ADA price performance increasingly tracks real developer and DeFi activity. Protocol Version 11, known as Van Rossem, is already live on the Preview testnet and targets a mainnet governance action submission on May […] The post Cardano’s May 29 hard fork vote brings ADA’s DeFi weakness into view appeared first on CryptoSlate.

EU opens MiCA review as consultation probes stablecoin interest rules, DeFi risks and classification gaps ahead of July's crypto authorization deadline. The European Commission has opened a review of its landmark crypto regulation, signaling that the European Union is considering updates to its landmark digital asset framework just two years after it took effect. The commission on Wednesday launched a public consultation seeking feedback from the crypto industry and the wider public on whether the EU’s Markets in Crypto-Assets Regulation (MiCA) should be updated. The consultation will remain open until Aug. 31. The commission said crypto markets and the global regulatory environment have “continued to evolve” since MiCA took effect in 2024, prompting officials to assess whether the current framework remains “fit for purpose.” Read more

DefiLlama’s RWA category data puts the RWA tokenization market near $30 billion on-chain, with only $2.47 billion appearing as DeFi active TVL, the value actually deposited or pooled inside third-party DeFi protocols the platform tracks. The rest of the tokenized real-world assets market sits outside the lending markets and collateral vaults that make crypto assets […] The post Why the $30 billion RWA tokenization boom is barely reaching DeFi appeared first on CryptoSlate.

Two security companies have flagged the address where the stolen funds are allegedly being held, showing the cryptocurrencies have been converted into 5,402 Ether. Verus Protocol’s Ethereum bridge was reportedly exploited on Monday through a fake cross-chain transfer message that allowed a hacker to fraudulently transfer out at least $11.58 million in cryptocurrency. Onchain security platform Blockaid said in an X post on Monday that its detection system identified an ongoing exploit on the Verus-Ethereum bridge and shared a transaction on Etherscan showing a transfer of 1,625 Ether (ETH), 147,659 USDC (USDC) and 103.57 tBTC v2, worth over $11.5 million. Blockchain security company PeckShield also called the transfer an exploit, with onchain data showing the funds have since been converted into Ether. The wallet shows a balance of 5,402 Ether, worth over $11.4 million, according to Etherscan. Read more

THORChain’s suspected multichain exploit and emergency halt on May 15 has turned into another DeFi security incident, and another test of cross-chain trust. Emergency controls moved through chain-specific halts, Halt All Trading, Halt Signing, Halt Chain Global, Halt Churning, and repeated global node-pause updates. One public alert described the likely exploit affecting Bitcoin, Ethereum, BSC, and Base, […] The post THORChain exploit turns emergency chain halt into a DeFi trust test appeared first on CryptoSlate.

For protocol founders and security researchers, the incident reinforced a broader shift underway across crypto: DeFi is no longer primarily battling coding bugs. It’s battling complexity.

Kraken is moving its wrapped Bitcoin (kBTC) to Chainlink CCIP as bridge-security fears continue spreading across DeFi, turning the bridge-security debate into a decision about wrapped-Bitcoin infrastructure. In a recent announcement, the exchange said it is deprecating its existing cross-chain provider and moving all Kraken Wrapped Bitcoin to Chainlink's Cross-Chain Interoperability Protocol. CCIP will become […] The post Kraken moves Bitcoin to Chainlink as bridge fears spread across DeFi appeared first on CryptoSlate.

Freezing crypto stolen in a hack might be the right thing to do, but it can expose DeFi protocols to major legal risks.

“The product that wins isn’t the one that explains crypto better, it’s the one that hides it completely,” said CEO Jayson Hobby. Decentralized finance mobile “superapp” Legend has announced it is winding down after about two years of operation, adding to a string of crypto apps deciding to shut down this year.  Legend was a DeFi aggregator that aimed to bring DeFi to its users rather than forcing them to sign into multiple different wallets or applications to use their crypto.  “We believed the right interface could put DeFi’s most powerful primitives in front of mainstream users.” Legend co-founder Jayson Hobby said on Tuesday.  Read more

ETH futures and options signal quiet confidence among pros despite macro headwinds and DeFi exploits, keeping the $2,600 price target in play. Key takeaways: Ether (ETH) price failed to sustain bullish momentum after peaking near $2,380 on Sunday. Repeated failures to break the $2,400 mark over the past four weeks have gradually drained confidence, suggesting professional ETH traders might be jumping ship despite several derivatives and onchain metrics supporting further upside. Read more

A fund manager, treasury desk, custodian, or regulated fintech function with vault accounts, policy-based approvals, granular access controls, audit trails, API access, and operational continuity when employees rotate. That structure is reshaping how capital is allocated within DeFi, and it explains why Cardano's latest infrastructure push via Iagon's Cardano Vault, built with Fireblocks, is a […] The post Cardano to focus on tokenized institutional vaults as DeFi’s retail focus fades appeared first on CryptoSlate.

Sharplink will contribute $100 million in staked Ether to a Galaxy-managed fund as institutions seek to earn yield from crypto holdings without selling ETH. Digital asset company Galaxy and Ethereum treasury platform Sharplink will launch a private fund that will invest Ether in decentralized finance (DeFi) strategies, signaling growing institutional interest in earning onchain yield from crypto holdings. The proposed fund, called the Galaxy Sharplink Onchain Yield Fund, is expected to launch in the coming weeks with $125 million in initial commitments, the companies said Monday. Sharplink plans to contribute $100 million from its staked Ether (ETH) treasury, while Galaxy will commit $25 million and serve as the fund’s manager. Read more

Crypto projects with more than $3 billion in total value locked have migrated their cross-chain infrastructure to Chainlink’s Cross-Chain Interoperability Protocol (CCIP) following a $292 million exploit at KelpDAO, which heightened scrutiny of bridge security across decentralized finance. Chainlink confirmed the migration wave, saying four protocols, including KelpDAO, Solv Protocol, Re, and Tydro, had begun […] The post Chainlink emerges as the unlikely $3B winner of KelpDAO exploit as DeFi projects dump LayerZero appeared first on CryptoSlate.