Welcome back to Ethereum Daily — where we publish the the most notable updates across the Ethereum ecosystem. Let’s dive in 👇

• 🏦 Gelato & Morpho Labs Intro Embedded Crypto-Backed Loans

• 💎 Bit Digital Shifts from BTC to $ETH Treasury

• 🏠 U.S. Allows Crypto Collateralization of Mortgages

• 🌿 Sky Launches Institutional Credit Platform, Grove

Gelato and Morpho Labs launched embedded crypto-backed loans, allowing dApps to offer lending functionality directly within their interfaces. Users can borrow stablecoins against ETH and other assets without needing to navigate away.

Loans are powered by Morpho Blue, offering customizable risk parameters for developers.

Bit Digital, a Nasdaq-listed company, announced it is winding down Bitcoin mining operations to focus entirely on Ethereum.

By the end of Q1, Bit Digital held 24,434 ETH and will transition into a staking and treasury management firm focused on Ethereum.

President Trump’s administration directed Fannie Mae and Freddie Mac to begin accepting cryptocurrencies as mortgage collateral.

This marks a significant milestone for integrating crypto into traditional finance and could offer homebuyers new ways to leverage their digital assets.

Sky, in collaboration with Steakhouse Financial, launched Grove to manage its PSM and invest in low-risk RWAs like JAAA CLOs.

Grove aims to offer a 5.35% yield on allocations, becoming the second Star Agent in Sky’s architecture.

It bridges DeFi and traditional credit markets by allocating stablecoins into secure institutional-grade assets.

Nethermind held its inaugural community call to discuss the roadmap for BuilderNet. The call emphasized permissionless access and onchain governance through Trusted Execution Environments (TEEs).

BuilderNet will serve as a modular execution layer, promoting decentralized computing on Ethereum.

Ligero open-sourced Ligetron, a client-side ZK prover designed to run on mobile and server-grade devices alike.

Ligetron eliminates the circuit size constraints that typically limit ZK applications.

Lagrange is working with Intel to bring verifiable AI to the world through DeepProve. The project leverages Intel’s AI compute platform to support ZK-verified inference.

It enables secure and auditable outputs for AI models across industries.

Grow The Pie reported Ethereum mainnet reached 1.57 million transactions, a yearly high.

This record-setting usage reflects growing demand for Ethereum-based services across DeFi, gaming, and L2s.

EthResearchBot shared new EIP's from the Ethereum Research Forum. Topics included MEV market structures, using blobspace for order flow, and safeguarding access fairness in L2s.

These summaries serve as a quick snapshot of Ethereum’s evolving R&D focus.

StarkWare introduced S-two, a new zkVM built by Nexus Labs that supports RISC-V, C, and Rust.

It allows for generalized proof systems, enabling broader types of verifiable computation.

Jaehaerys explained how blobspace can be used to build scalable central limit order books (CLOBs) on Ethereum.

This model could power next-gen decentralized exchanges using zk rollups and modular infrastructure.

It proposes a more trust-minimized approach to handling high-frequency trading.

0xEverly analyzed Ethereum’s validator queue, noting that high wait times push users toward liquid staking solutions.

Hubkotl shared a perspective on risk assumptions in EigenLayer's Actively Validated Services (AVSs).

They highlighted potential vulnerabilities if validators cut corners or misbehave.

Srijan revealed that Noice processed 1.6 million gasless micropayments on Base, totaling 1.21 ETH in sponsored gas.

Each transaction averaged under $0.002 in cost, demonstrating the potential for mass-scale microtransactions.

Octant revealed the launch of its Epoch 8 funding round, continuing its mission to support Ethereum public goods through quadratic funding.

Selected projects span DeFi, infrastructure, and social impact categories.

Hubkotl, 0xEverly, and Jaehaerys shared insightful threads on AVS security, validator queue incentives, and blob-based CLOBs respectively.

These perspectives add context to active protocol debates and ecosystem design considerations.

Nethermind outlined its goals for BuilderNet, a decentralized modular execution layer.

Ligero released Ligetron, enabling scalable ZK proofs from mobile to server.

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