Current State and Challenges of the DeFi Market: After experiencing market shocks, DeFi is shedding the "second-system effect." Stablecoins are impacting traditional finance, and institutional DeFi is changing operational models. However, the industry still faces two major problems: the lack of a final lender of last resort for the on-chain economy, and a scarcity of truly original DeFi mechanisms.

Innovation Focuses on Core Areas: DeFi innovation revolves around DEXs, lending, and stablecoins, exemplified by Hyperliquid's Perp DEX and Pendle's yield strategies. However, synergistic effects also lead to liquidation risks and trust crises. Protocol centralization is evident, with giants like Aave dominating the market, marginalizing emerging protocols like Morpho.

Pricing and Competition Dynamics: Protocol market performance is a result of博弈. Established protocols like Aave are more robust, while the success of new protocols like Hyperliquid is an anomaly. Competition is intensifying, with growth bought through burning money. Profitability has become a key metric, favoring earlier protocols.

Asset Classification and Evolution: Assets are categorized by time and volatility into four quadrants: Rookie Zone, Altcoin Zone, Industry Leaders, and Death Zone. Most projects remain in the Altcoin Zone; breaking through the cycle is needed to reach the stable zone, like BTC and ETH. Sectors like Meme exist but struggle to persist.

Future Innovation Directions: Yield-bearing stablecoins could connect DEXs, lending, and stablecoins but require strong engineering capabilities. Agentics and Robotics might leverage blockchain's programmability to drive mass adoption. Liquidation mechanisms remain an industry challenge. The involvement of traditional law firms highlights the challenge to "Code is Law." BTC still plays the role of the ultimate清算者.

(Author: ZuYe)

Within a single month, the crypto market endured two major shocks on 10·11 and 11·03, leading many to question if DeFi still has a future. This moment provides an opportunity to examine the current structure and direction of the DeFi market.

The Macro Perspective: Shedding Baggage and Real Impact

From the broadest perspective, DeFi is rapidly shedding the "second-system effect." The impact of stablecoins on traditional banking and payment industries is becoming tangible, evidenced by the Fed's attempt to provide them with simplified master accounts. Institutional DeFi, represented by Aave/Morpho/Anchorage, is changing how traditional finance operates. Uniswap's plan to activate fees and the fierce Perp DEX war led by Hyperliquid continue unabated.

Lingering Challenges: The Two Dark Clouds

Immaturity lies in choosing to die nobly for an ideal. It is far too early to claim DeFi is fully mature and only needs mass adoption. Two dark clouds still loom in DeFi's sky:

1. Who is the final lender of last resort for the entire on-chain economy? J.P. Morgan facilitated the creation of the Fed; what mechanism should assume a similar role in DeFi?

2. Beyond the endless recursive combinations of existing DEX/Lending/Stablecoin products, how should truly original DeFi tracks or mechanisms emerge?

Price is the Outcome of博弈

However, as long as you are connected, I am by your side.

We are often blinded by the omnipresent. In the DeFi microcosm, all innovation to date revolves around DEX, Lending, and Stablecoins. This isn't to say BTC/ETH aren't mechanistic innovations, nor that RWA/DAT/tokenized stocks/insurance aren't asset innovations.

Referring to the six pillars of on-chain protocols, BTC and Bitcoin essentially require no other assets or protocols. The DeFi we discuss refers to projects on public chains/L2s like Ethereum/Solana. Considering the leverage cycle of currencies, stocks, and bonds, the cost of selling innovative assets is increasing. The entire industry is pursuing products with genuine profit capability, like Hyperliquid.

Since the end of DeFi Summer, DeFi innovation has been about continuously improving established products, existing assets, and accomplished facts. For instance, trading is divided into spot, perpetuals, and Meme, corresponding to AMM/CLOB/Bonding Curve from the DeFi Summer era. Even the highly innovative Hyperliquid bears traces of Serum.

At the most micro level, Pendle started with fixed-income products, embraced LSTs/LRTs, yield-bearing stablecoins like Ethena, while Euler and Fluid coincidentally chose to build their own lending + swap products. If users employ YBS like Ethena to set yield strategies, they could theoretically utilize DEX, Lending, and Stablecoin simultaneously across any chain, any protocol, any Vault.

While this synergy amplifies yields, it also "manufactures" numerous liquidation disasters and trust crises. Beyond this,遍地都是 No-Go Zones. Blockchains are born free, yet everywhere they are in chains.

Centralization Amidst Decentralization

Decentralization is a beautiful vision, but centralization is more efficient. More scarce than tracks is the centralization of protocols. Aave is undoubtedly vast and secure, but this also means fewer, newer choices for users, while later entrants like Morpho/Euler can only embrace potentially unsafe facilitators and "inferior" assets.

The unbanked drove the pursuit of stablecoins in the third world. One cannot say Aave's prudence caused Morpho's crisis, but the 'unAaved' have sparked the chase for subprime bonds, subprime protocols, and subprime facilitators among on-chain newcomers and the younger generation.

Innovation and Market Reality

Innovation can only happen among marginal groups where the cost of trial and error is extremely low. Survivors repeatedly challenge the established order; Aave V4 will also become more like its competitors rather than its own successful past.

The market prices and trading volumes of protocols and their tokens we see now are merely direct reflections of the current environment—in other words, the acknowledged result of repeated博弈. Their effectiveness for the future, or even their reference value, is debatable. Stablecoin chains and Stablechains are booming but stand little chance of challenging the adoption of Tron and Ethereum. Even challenging USDe, which has a much smaller scale than USDT, has already been declared a failure for xUSD.

The Crypto Gravity Well: Time and Revenue

The pricing system favors time; protocols that last longer tend to continue lasting. The success of Hyperliquid and USDe are deviant anomalies. How much market share Euler/Morpho/Fluid can capture from Aave is debatable, but replacing Aave is nearly impossible.

Competition is turning inward, burning money for growth.

As shown in the chart above, the x-axis represents the time since the protocol's token launch, and the y-axis represents the protocol's value capture ability. Compared to metrics like token price, trading volume, and TVL, profitability is arguably the most objective representative (Polymarket theoretically doesn't make money).

Theoretically, protocols established earlier have stronger, stable profitability. New entrants can only enter by constantly enhancing their token <> liquidity <> trading volume flywheel. Referring to Monad/Berachain/Story, failure is the more probable outcome.

Value as the Goal in Equilibrium

Believe in the power of the masses, but not in their wisdom.

DeFi is a movement. Compared to exchanges and TradFi, and within a generally宽松 background, it is indeed one of the best innovation cycles in history, potentially birthing new paradigms surpassing DeFi Summer.

Exchanges are being heavily hit. Hyperliquid's transparency, for the first time, demonstrated greater anti-fragility than Binance during the 11·03 event. Post 11·03, the momentum in lending and stablecoins has slowed but hasn't been disproven. There is a genuine need for subprime bonds and simple fund/bond/equity instruments—stablecoins.

Compared to market makers facing liquidity migration restrictions on CEXs during 10·11, on-chain trading—spot, perpetuals, alternative assets—are actively expanding scale. As long as problems can be engineered and combined, the possibility of them being completely solved exists.

Asset Classification: The Four Quadrants

Placing various new assets in the Rookie Zone, they are sensitive to both time and volatility, essentially belonging to short-term speculative assets. Only by transcending simple博弈 cycles and settling into stable holder bases and use cases can they enter the Altcoin Zone, where they become less time-sensitive but whose liquidity cannot withstand drastic market changes. Most projects will remain here.

Furthermore, the harder project teams try—with measures like ve(3,3), buybacks, burns, mergers, rebranding—they might still remain here. This can be seen as a slow climb; failure to advance means regression, and even advancing might lead to falling back.

The subsequent story is simple: successfully overcoming the trial leads to the stable zone, becoming so-called cycle-crossing assets like BTC and ETH, perhaps with half an SOL and USDT added. But the vast majority of assets will slowly die, becoming neither time-sensitive nor volatile.

Meme and DAT will exist long-term as sectors, but assets under them rarely have lasting opportunities. DOGE and XRP, as extreme outliers, represent rare examples of Meme and altcoin survivors.

Future Directions: Integration and New Frontiers

Treating protocols as asset innovations makes many problems easier to solve, meaning the entrepreneurial goal is a one-time sale of itself, not aiming to become a sustained, open system.

Future directions include:

* Spot DEX: Focused on mainstream assets (BTC/ETH) and whale position changes; retail trades altcoins less. The core is finding specific clients, not becoming permissionless public infrastructure.

* Perp DEX: Large funding rounds like Lighter's are often preludes to token launches. VCs are highly segmented.

* Meme: Emotion itself becomes a tradable asset but cannot form an industry-wide consensus.

* Platformed & Modularized Lending: A long-term trend where lending protocols can sell their liquidity, brand, and technology piecemeal—essentially a B2B2C model.

* DEX + Lending Integrated Development: Among the newest in the recursive combinations.

* Non-USD Stablecoins / Non-Pegged USD Stablecoins: Short-term focus on developed regions like Euro, Yen, Won, but long-term markets are in the third world.

Yield-bearing stablecoins best fit the asset form that connects DEX, Lending, and Stable but require massive engineering and integration capabilities.

Regarding innovative models beyond DEX/Lending/Stable, current samples are scarce. Stablecoin NeoBanks are still integrated models of the three. Prediction markets belong to the broad DEX type. More promising ideas might be Agentics and Robotics.

Conclusion: Making DeFi More DeFi

The internet brought scalable replication, differing vastly from the industrial era's production models, but long lacked a corresponding economic model. The advertising economy comes at the cost of user experience. Agentics, compared to just putting LLMs on-chain, fits blockchain's technical特性 better—the极致programmability enabling 24/7 trading efficiency.

With gradually cheaper Gas Fees, years of TPS improvements, and ZK development, mass adoption of blockchain might occur in a replication economy that doesn't require human participation.

Robotics' short-term integration with cryptocurrency isn't particularly interesting. As long as even leading companies haven't moved beyond gimmicks and educational tools, Robotics in Web3 will struggle to land practically. The long term? Only heaven knows.

Robotics is too far away;清算is urgent.

The composite清算mechanisms of DEX+Lending are proactive constructions against DeFi crises. Yet, they couldn't stop the spread of the 11·03 crisis. The most effective measure was Aave's preemptive refusal. Looking across the industry, how to handle清算and restore markets has become the biggest challenge.

In 2022, after the 3AC incident, SBF actively acquired and restructured involved protocols. Yet, within half a year, FTX was also taken over by traditional law firms. Following the Stream xUSD collapse, it was immediately handed over to a law firm.

"Code is Law" is fast becoming "Lawyer is Coder."

Before SBF and the law firms, BTC long served as the ultimate清算者, albeit requiring a long time to rebuild trust in the on-chain economy. But at least, we still have BTC.

Business Shift: While the trading division hit record transaction volumes, its profit contribution fell to under 45% of total profits. Revenue from corporate finance and treasury management grew to $408 million, accounting for over 55% of adjusted gross profits—signaling a move from trading to subscription and service-based income.

Stable Revenue Streams: Corporate digital assets under management surged from $1 billion to over $4.5 billion within 12 months, generating $40 million in annual recurring revenue—the company’s first predictable income source.

Major Physical Project Advancement: The Helios data center project in Texas secured a 15-year lease agreement with CoreWeave and $1.4 billion in financing. It is expected to launch in the first half of 2026, with projected annual revenue exceeding $1 billion and an EBITDA margin of up to 90% once fully operational.

Market Reaction & Challenges: Despite profit growth, the company’s stock fell over 10%. Profit margins from traditional trading remain below 1%, prompting Galaxy to reduce reliance on market volatility by expanding treasury management and physical projects.

This transformation aims to build a sustainable business model independent of crypto market speculation.

From Desert Promise to Powerhouse
Bulldozers sat idle under the scorching heat. The site was remote, contracts were uncertain, and the idea of a crypto trading firm transforming into an electricity provider seemed far-fetched.

A year ago, the Helios data center in Texas was merely a promise in the desert.

Today, the situation is截然不同 (completely different). While turbines aren’t running yet, contracts are signed, financing deals are closed, land is leased, and transformers are ordered. A company that once profited from volatility is now investing in certainty.

Galaxy Digital’s quarterly report for the period ending September 30, 2025, may not overtly showcase this, but a closer look at its year-long data reveals a clear shift. Galaxy’s trading division still handles billions in transactions, but the trajectory over coming months is obvious to any observer.

Quarter by quarter, Galaxy looks less like a trader and more like a banker.

Key Takeaways:

• Galaxy’s trading volume hit record highs, but its profit share declined relative to other business segments.

• Corporate finance mandates grew 4x year-over-year, generating $40 million in annual recurring revenue—marking Galaxy’s first predictable income source.

• Treasury and corporate segment revenue rose to $408 million, representing over 55% of adjusted total gross profits.

• The Helios project is on track for launch in H1 2026, with a signed 15-year CoreWeave lease (526MW) and $1.4 billion in project financing.

• Despite strong profit growth, Galaxy Digital Inc.’s stock fell over 10%.

The Banker for DATs
Over two months ago, I discussed how the buzz in Galaxy’s offices had changed: from the clamor of traders to the gentle hum of clients parking idle funds. What began as a side project helping token issuers manage stablecoin reserves has evolved into assisting companies with their Digital Asset Trusts (DATs).

Over recent quarters, this business segment has generated reliable cash flow by providing clients—including DAOs, exchanges, and startups—with an integrated platform for custody, yield, and liquidity. Galaxy helps these clients build their treasuries, earning basis points at every layer.

In the past 12 months, assets under management for this business quadrupled, growing from ~$1 billion to over $4.5 billion. While Q3 2025 revenue from this segment may seem modest compared to trading, it signals an important trend: a shift from transaction-based to subscription-based models. The corporate treasury management business brings ~$40 million in annual recurring revenue, representing sustained long-term income rather than sporadic trading gains.

However, treasury management isn’t risk-free or immune to market volatility. Galaxy CEO Mike Novogratz acknowledges this business fluctuates with crypto market movements.

Despite these challenges, the trajectory is clear. Galaxy is learning, quarter by quarter, how to decouple revenue from volatility. Though it’s a gradual process, the company’s financial health suggests it’s on the right path.

While not the most exciting revenue source, it’s reliable for a company that built its reputation on trader performance—and represents a strategic pivot.

The Profit Problem Driving Change
Much of Galaxy’s revenue still comes from the old model: charging fees for client-executed trades. However, this fee structure maintains thin margins, below 1%.

Last quarter, I explored the company’s "0.15% problem"—record trading volumes with razor-thin spreads. This quarter, the pattern persists. Although the digital assets division’s spot and derivatives trading volume grew 140% year-over-year in Q3 2025, a significant portion came from selling 80,000 BTC on behalf of a client.

In Q3 2025, over 97% of the digital assets division’s adjusted EBITDA was just $250 million—less than 45% of total EBITDA.

In contrast, the Treasury & Corporate segment’s adjusted EBITDA was $376 million, accounting for under 2% of total revenue.

This is the crisis Galaxy decided to confront: the more liquidity they provide, the less profit they make.

So, how are they solving it? By creating yield. While other companies mint stablecoins or borrow against them, Galaxy focuses on building a corporate treasury management business. This model doesn’t rely heavily on arbitrage or market timing like trading; instead, it depends on long-term partnerships, custody, and recurring fees.

This strategic shift indicates Galaxy’s future growth will come more from advising DATs than from market volatility itself. While DATs provide modest but steady income, the company’s next blockbuster project—Helios—promises substantial, sustainable physical earnings.

Two Major Profit Engines
In West Texas, the desert heat no longer signifies risk but opportunity. The company that once thrived on perfect market timing has now secured contracts, raised capital, and signed a 15-year rental guarantee with CoreWeave, a leading U.S. AI computing firm, as its tenant.

Once fully operational, the Helios data center is projected to generate over $1 billion in annual revenue with up to 90% EBITDA margins. The financing and data center businesses will gradually reduce Galaxy’s reliance on market timing—a luxury in the volatile crypto space.

This strategic transformation aims to establish a stable revenue foundation insulated from market fluctuations.

Conclusion
Investors should note that while trading remains Galaxy’s headline act, fee income and future leases are beginning to smooth out volatility.

Every crypto company eventually faces the same dilemma: "Once the speculative fervor fades, what will you build?"

For Galaxy, this quarter marks a turning point. Building yields that appear on schedule may be the most boring idea the company has ever had—but it could also be the most transformative.

Bitcoin: Back to $115 k and Testing the Golden Cross
Bitcoin has clawed its way back to $115,000 and its dominance is once again north of 59 %. Chartists point to a re-test of the 50-/200-DMA “golden cross”—a set-up that has preceded every major BTC explosion since 2016. On-chain, the picture looks equally constructive:ARK Invest’s latest weekly shows long-term-holder supply unchanged, mid-size wallets accumulating and whales absorbing the dip. Institutions now control 12.2 % of all mined coins via ETFs and trust structures, the highest ratio on record. Macro tail-winds—disinflation, a softening jobs market and an unmistakable Fed pivot—are lining up in bitcoin’s favour. The largest unknown remains Trump himself: policy whiplash could still spark intra-day swings, but the structural bull case is intact.

Ethereum & Altcoins: Whales Bottom-fish while “Alt-season” Dies
Ethereum briefly reclaimed $4,100 as whales trawled the wreckage. On-chain sleuths spotted BitMine swallowing 128 k ETH (~$480 M) within hours of the flash-crash; another deep-pocket—linked by Eye Analytics to former exchange exec Garrett Jin—had already rotated $4.23 B worth of BTC into ETH earlier in the month. Elsewhere, the alt-coin universe remains in purgatory. The “Alt-season Index” has dropped to 41, and voices once synonymous with “rotation trades” are now calling the space dead. DeFiance Capital’s Kyle warns the crash may be “cycle-ending” for a long tail of tokens; trader Eugene goes further, arguing the wealth-annihilation was so fierce that investor psychology is permanently scarred. The lone bright spot: BNB Chain’s heat-map is still glowing, and its native token has already round-tripped to pre-crash levels—hinting that, even in a barren alt landscape, capital will still chase the last liquid playground.

Macro & Policy: Shutdown Drama and the Powell Put
Washington remains partially shuttered, but Wall Street thinks the curtain falls by 15 Oct.—the day military salaries are due. Goldman’s Alec Phillips gives the shutdown <5 % odds of lasting beyond that date; Trump himself has ordered the Pentagon to tap “any available bucket” to keep troops paid. Markets, therefore, have moved on to the next risk event: Jay Powell’s Wednesday-morning speech. With September CPI delayed until 24 Oct., traders will parse every adjective for clues on whether the Fed is ready to insurance-cut again. Add in the first batch of Q3 earnings and a slate of 2026-voter Fedspeak and the week is packed with trip-wires.

Key Metrics & What’s Hot

• Fear & Greed: 38 (Fear)

• 24-h liquidations: $605 M across 181 k accounts (BTC $121 M, ETH $218 M)

• ETF flows (10 Oct.): BTC ETFs −$4.5 M; ETH ETFs −$175 M

• BTC spot volume: $91.7 B; ETH: $55.8 B

• Upbit leaderboard: XRP, ETH, BTC, SOL, ZKC

• Sector winners: AI +22 %, Layer-2 +14 %

• BTC trend channel: upper $118.4 k / lower $116.1 k

• ETH trend channel: upper $4.28 k / lower $4.20 k

Narrative Watch-list
Portal to Bitcoin main-net is live today; CME lists SOL and XRP futures options; rumours swirl that at least two multi-strat crypto funds are on the ropes—Parataxis CEO Edward Chin expects “a fresh bankruptcy wave” to hit headlines within weeks.

Bottom Line
The “TACO-trade” (Trump-and-Congress Optimism) has bought risk assets one more lifeline. Crypto has used it to purge leverage, reset positioning and lure whales back into BTC and ETH. Whether the rebound becomes a new cycle or simply a lower-high in a grinding bear will depend on Powell, the pace of real-world adoption and, as always, the next tweet from Mar-a-Lago.

2. The Bleeding – $4.6 Billion Net Outflow in Nine Months
Despite 148 TPS (6× Arbitrum), sub-$0.01 gas and 1 M daily actives, Base recorded a net outflow of $4.6 B since January. On-chain data shows the same pattern: user bridges in, swaps a meme, withdraws liquidity back to Ethereum. Base has become a high-speed on-ramp, not a hotel.
Arbitrum and Optimism keep users sticky with 200 M+ ARB/OP sitting in DEX gauges, vaults and quests. Base has loyalty points; they want loyalty capital.

3. The Ecosystem – Leveraged Giants vs. Native Gems
TVL $5 B, but only 38 % is “native”:

• Aerodrome Finance (Solidly fork) – $1.1 B, 60 % of on-chain DEX vol

• SeamlessFi (lending) – $420 M supplied, no OP-style incentives yet

• Friend.tech – 2.1 M registered rooms, 380 k DAU, but revenue flat since April

• Farcaster hubs – 65 % run on Base L2, waiting for token-gated storage

A token lets Base tilt subsidies toward these home-grown protocols instead of feeding Uniswap and Aave that port the liquidity straight back to L1.

4. The Economics – How Coinbase Prints a $50 B Asset Out of Thin Air
Base currently books ~$75 M annual sequencer fees—0.8 % of Coinbase revenue. A BASE token, even with a conservative 20 % float and 50 × FDV/revenue multiple (market median for L2s), lands at $75 B fully diluted. Coinbase, as the sole shareholder of the sequencer, can allocate 25–35 % of genesis supply to a “Base Treasury” and still satisfy “sufficient decentralisation” checklists.
Net result: swap a single-digit-percent income stream for a balance-sheet asset larger than the current market cap of COIN itself.

5. The Compliance Play – Turning Regulators Into Cheerleaders
Pollak’s public framing—“decentralise the sequencer”—is not cosmetic. The SEC’s recent closed-door guidance lumps “centralised sequencing” under the same risk bucket as custody. A tokenised validator set, elected by staked BASE, gives Coinbase plausible deniability: we don’t order transactions, token-holders do.
Meanwhile the CFTC, which already regulates Coinbase Derivatives, is comfortable with L2 governance tokens classified as commodities. A BASE perp launched on Coinbase International the day the token goes live is a built-in revenue flywheel that stays offshore and off-balance-sheet.

6. The Distribution Chessboard – Who Gets Rich?
Tier 1: Core protocols – Aerodrome, Seamless, Friend.tech are pencilled in for “ecosystem grants” equal to 15–20 % of supply, mirroring OP’s incentive spiral.
Tier 2: Power users – expect a quadratic airdrop capped at $10 k per wallet; high-volume addresses that never bridged out receive a 2× multiplier.
Tier 3: Retail – Coinbase will drip BASE rewards into “Learning Rewards” quizzes, ensuring every verified retail account ends up with at least one token—psychological lock-in.
Tier 4: Coinbase shareholders – 1–2 % of supply will be airdropped pro-rata to COIN holders, turning equity bulls into token bulls overnight.

7. The Risks – Pump, Dump or Regulatory Trap?

• Front-running: Venture wallets already accumulated 40 M OP-equivalent points on black-market forums; an immediate dump could crash price 70 %.

• Regret airdrop: If the snapshot window is too narrow, farmers win, real users revolt—see JTO chaos.

• Centralisation theatre: If Coinbase runs >34 % of validator nodes post-token, critics will label the decentralisation narrative “compliance cosplay”.

8. Scenarios – Two Ways the Story Ends
Big-Bang (30 % probability) – single snapshot, 12 % supply airdropped, price spikes to $4, then bleeds 80 % in six weeks as farmers rotate.
Slow-burn (70 % probability) – quarterly “waves” of 2–3 % supply, each tied to explicit KPIs (TVL, sequencer decentralisation ratio, game launches). Price discovery stretches over 18 months, FDV stabilises above $50 B and Base becomes the first L2 whose revenue eclipses its parent exchange.

Bottom Line
Base’s token is not a question of “if” but “when and how much.” Coinbase has already swapped ideology for economics; the only remaining task is to dress the transfer in decentralisation clothes regulatory enough for Washington and shiny enough for Crypto-Twitter. Watch the snapshot date—because when the BASE chain finally prints its own currency, the wealth reshuffling will make the Arbitrum airdrop look like a garage sale.

2. Five New Rails, Five Different Pitches

3. So Are Ethereum & Solana Doomed?
Short answer: No, but they are being stripped of payments—the use-case that bootstrapped both chains.

• Ethereum keeps the casino (DeFi, NFTs, restaking, L2s). ETH is still the collateral of choice for on-chain derivatives worth > $60 bn notional.

• Solana keeps the memes, perps and DePIN. A 150 ms block is irrelevant when payroll wants 0-fee and regulatory certainty.

• TRON is the most exposed: 55 % of on-chain USDT lives there; Tether’s own Stable chain removes the rent-seeker.

Stablechains are payment L2s—optimised for one job: move dollars faster and cheaper than SWIFT, ACH, VisaNet. They sacrifice permissionless innovation for regulatory closure and fee predictability. That trade-off is unacceptable for NFT marketplaces or on-chain games, but irresistible for a CFO wiring salaries to 42 countries.

4. Retail Edge: Where’s the Airdrop?
These chains are boring by design—no dog coins, no 100× leverage. But capital formation still needs early adopters.

Pro tip: Run nodes. Arc and Tempo both use proof-of-authority + rotating committees; staking requirements are low early on (1–5 k USDC), but validator revenue is fee-sharing rather than inflation, a steadier cash-flow model.

5. The Invisible Bull Case
Stablechains will not flip Ethereum’s market-cap, but they expand the aggregate addressable surface of on-chain dollars. Every corporate treasury that converts idle cash into USDC on Arc is a potential future staker on Lido. Every LatAm SME that receives zero-fee USDT on Stable is one UI away from DeFi yields on main-net. The boring rails subsidise the fun rails—fiat inflow as a public good.

So Ethereum does not need to win the payroll market; it needs Arc, Tempo & Stable to succeed, so that dollars slosh back into permissionless collateral markets when CFOs decide to optimise yield. The enemy of ETH was never cheaper fees—it was off-chain dollars. Stablechains turn those dollars on-chain first; speculation comes later.

Bottom Line
The future is multi-chain and hyper-specialised:

• Stablechains = SWIFT on steroids

• Ethereum = Wall Street on-chain

• Solana = Las Vegas on Rust

Place your chips accordingly.

Core Mechanism
DAT companies rely on equity financing (e.g., ATM offerings, convertible bonds) to continuously purchase cryptocurrencies, forming a "capital flywheel." In bull markets, high-premium financing accelerates asset growth; in bear markets, dried-up financing channels can trigger a "death spiral," leading to stock price crashes.

Key Risks

• Equity Dilution: MicroStrategy’s outstanding shares grew over 200% in 5 years. Despite increased BTC holdings, the BTC-per-share ratio was significantly diluted, directly harming shareholder value.

• Leverage Volatility: DAT stocks inherently carry leverage (financial and premium leverage), amplifying gains and losses compared to underlying cryptocurrencies. Downturns may trigger forced sell-offs.

• Narrative Collapse: Early "scarcity premium" relied on limited alternatives, but the launch of spot BTC ETFs weakened this advantage. Investors now focus on fundamentals over stories, eroding premiums.

• Crowded Trades: Homogeneous trading strategies make DATs crowded targets. Early investors cashing out profits can easily trigger stampedes.

In summary, DATs are high-volatility, high-risk leveraged crypto investment tools. Their valuation requires strict analysis of net asset value (NAV) per share, premium rates (mNAV), and dilution effects—not just grand narratives.

Summary
Author: [Agintender]

Why do DAT stocks now "plunge 50% upon announcement"? Is it due to early investors dumping shares? Has the market stopped buying in? This is not market irrationality or偶然 panic but a predictable, rational repricing process. It signals a shift from狂热追捧 novel narratives to冷静审视 financing mechanisms, equity dilution, and true per-share value.

Part 1: Deconstructing the DAT Model
1.1. Definition & Core Logic: Bridging Traditional Finance and Crypto
DAT companies strategically accumulate cryptocurrencies (e.g., BTC/ETH) as core assets on their balance sheets, providing regulated, equity-based exposure for traditional investors (e.g., pension funds) constrained by compliance or custody issues. Pioneered by MicroStrategy (now Strategy Inc.) in 2020, this model has global analogs like Japan’s Metaplanet.

1.2. Key Concepts & Value Proposition

• Net Asset Value (NAV): The "true" intrinsic value of crypto holdings.

• Premium to NAV (mNAV): Quantifies stock price premium over NAV per share. High mNAV reflects optimism; contraction signals eroding confidence.

• Bitcoin Yield: Measures growth in BTC per share (fully diluted). Must be analyzed alongside股价表现 and mNAV trends to assess real shareholder value.

1.3. A Leveraged Proxy: Comparison with BTC ETFs
Unlike passive BTC ETFs, DATs are actively managed, leveraging:

• Financial Leverage: Debt-funded crypto purchases.

• Premium Leverage: mNAV amplifies BTC price movements.

• Unique Risks: Execution, regulatory, and financing risks (e.g., equity dilution).

Part 2: The Capital Flywheel—Financing, Reflexivity, and Market Impact
2.1. Financing Engine: How Capital Is Created

• ATM Offerings: Efficient but dilutive equity sales at market prices.

• Convertible Notes: Low-interest debt convertible to equity, future稀释风险.

2.2. Flywheel Effect: Amplifying Gains and Losses

• Upside Spiral (Bull Market): Rising BTC prices → higher mNAV → "value-accretive" financing → more BTC purchases → reinforced narrative → higher股价.

• Downside Spiral (Bear Market): Falling BTC prices → compressed mNAV → "dilutive" financing → broken narrative → investor exodus → death spiral.

Part 3: Why DATs "Plunge 50% Upon Announcement"—A Multi-Factor Risk Analysis
3.1. Dilution Engine: Quantitative Analysis of MicroStrategy
Despite Strategy Inc.’s BTC holdings growing to 630K+ BTC, fully diluted shares surged 200%+ since 2020. BTC per share declined recently, revealing value erosion from relentless equity financing.

3.2. Crash Psychology: Crowded Trades and Narrative Collapse
DATs are "crowded trades" with homogeneous investors. Early backers (e.g., PIPE investors) profit-take upon announcements, triggering sell-offs. As hype fades, scrutiny of dilution and fundamentals causes "narrative bankruptcy."

3.3. Volatility Mechanics: Leverage and Forced Selling

• Financial leverage amplifies BTC price swings.

• mNAV compression cripples ATM financing ability, halting the flywheel.

• Margin calls force leveraged investors to liquidate, exacerbating downturns.

3.4. Premium Evaporation: Competition and Market Maturation
Spot BTC ETFs offer cheaper, simpler, purer crypto exposure, eroding DATs’ "scarcity premium." Mature investors now prioritize fundamentals over stories.

Conclusion
DATs are innovative yet highly fragile instruments. Their bridge between traditional finance and crypto is structurally unstable. For investors, the post-plunge question is: How to respond? Strategies must include:

• Rigorous analysis of NAV/share, mNAV, and dilution trends.

• Avoiding leverage and crowded trades.

• Learning from anti-fragile cases (e.g., companies with strong cash flows beyond crypto).
  Success hinges on sustainable capital allocation—not just crypto accumulation.

The loudest narrative this cycle is the seamless fusion of traditional finance and DeFi.

• Stablecoins Go Infrastructure
  Stablecoins are no longer just “dollars on-chain”; they are the plasma connecting TradFi and DeFi. Alpha lies in arbitraging cross-chain yield differentials, locking stablecoin flows, and building novel rails on top of them.

• The MicroStrategy Effect for BTC & ETH
  Public companies adding crypto to their balance sheets is now a trend, not a headline. Spotting the next “quasi-reserve assets” before they’re announced is the new edge.

• “To Wall Street” Verticals
  Protocols purpose-built for institutions—compliant yield products, permissioned DeFi, on-chain fund-management tooling—will hoover up the big checks.
  The old mantra “Code is Law” has quietly morphed into “Compliance is King.”

2. Native Crypto Themes: Survival of the Fittest

Pure-play crypto narratives are entering a rapid culling phase.

• Ethereum’s Second Renaissance
  ETH’s price breakout reignites developer mindshare. The post-breakout playbook shifts from “Rollup-Centric” to “ZK-Centric,” with zero-knowledge stacks becoming the default upgrade path.

• High-Performance L1s: Real Activity > Vanity TPS
  The arms race is no longer about raw speed; it’s about who can onboard genuine economic activity. Watch three KPIs:
  – share of stablecoin TVL
  – native, sustainable APY
  – depth of institutional partnerships

• Altcoins’ Last Gasp
  A broad “alt season” is structurally starved for fresh capital. Expect only isolated “dead-cat bounces.” Screen for:
  – tight token distribution (low float, high conviction holders)
  – still-vibrant communities
  – ability to rebrand around fresh memes like AI or RWA

3. MEME Coins: From Sideshow to Portfolio Staple

Degens have become a permanent asset class.

• Capital Efficiency
  Traditional alts suffer bloated FDVs and dying liquidity. Fair-launched, high-velocity MEMEs now vacuum up the capital that once chased vaporware.

• Attention Arbitrage Still Rules
  KOL reach, meme culture, and engineered FOMO cycles remain the primary moats. Liquidity follows eyeballs faster than fundamentals.

• MEME Activity as a Chain KPI
  A vibrant MEME market is no longer a joke—it’s a signal of ecosystem health. The next L1 bragging rights will be measured in dog-money volume, not TPS.

In March 2025, JELLY, a low-cap token with less than $2M daily volume, triggered a $10M+ liquidation storm on Hyperliquid. Shockingly, the attackers didn’t breach smart contracts or exploit code vulnerabilities. They simply gamed the system’s transparency, exposing how mark prices—intended as neutral safeguards—can become weapons in illiquid markets.

This article dissects the systemic risks of perpetual contract mark pricing, revisits the JELLY attack, and reveals how oracle design flaws and Hyperliquid’s innovative (but vulnerable) HLP Vault created a perfect storm.

Part 1: The Perpetual Contract Paradox – How False Security Skews Liquidations

1.1 Mark Price: The Illusion of Safety

Mark prices are calculated using a median-of-three formula:

1. Index Price × (1 + Funding Rate) (anchored to spot markets).

2. Index Price + Moving Average Basis (smoothed for volatility).

3. Last Traded Price (on the derivative platform).

The median is meant to filter outliers—but this assumes sufficient, independent data sources. For illiquid altcoins, however, controlling just 2 of 3 exchanges lets attackers "pollute" the index price. Transparency backfires: the clearer the rules, the easier they are to weaponize.

1.2 Liquidation Engine: A Double-Edged Sword

Liquidations trigger based on mark price, not the actual market price. Worse, platforms often:

• Preemptively liquidate positions to avoid insolvency.

• Keep surplus funds from early liquidations (instead of returning them to users).

This creates a misalignment: platforms profit from conservative triggers, while traders face "phantom liquidations."

1.3 When Mark Prices Fail

For large-cap assets, median aggregation works. But for altcoins:

• 3 data sources? Manipulate 2, and the median is compromised.

• 2 data sources? The median becomes a simple average—zero outlier resistance.

Result: A "decentralized" index becomes a single point of failure.

Part 2: The Oracle Dilemma – Illiquidity as a Weapon

2.1 The Fragile Bridge Between Chains

Oracles report prices faithfully—but they can’t judge fairness. Attacks like Mango Markets (2022) and JELLY exploit this:

• Not oracle exploits, but market manipulation.

• Low liquidity = low cost to manipulate.

2.2 The Attack Blueprint

1. Target selection: Pick a thinly traded altcoin listed on derivatives.

2. Capital raise: Use flash loans for cheap funding.

3. Spot market blitz: Pump the price on monitored exchanges.

4. Oracle contamination: Let the oracle "honestly" report distorted prices.

5. Mark price infection: Trigger mass liquidations via derivatives.

Hyperliquid’s transparency backfired: Attackers knew exactly which exchanges to target and how much capital was needed.

Part 3: Hyperliquid’s Structural Risks – The Hunting Ground

3.1 HLP Vault: The Democratized Liquidity Backstop

Hyperliquid’s HLP Vault is both a market-maker and liquidation backstop. Users deposit USDC to earn yields, but:

• It automatically absorbs toxic liquidations (no human discretion).

• No isolation between market-making and liquidation pools.

Attackers could predict exactly who would buy their bad positions: the HLP Vault.

3.2 The Flaw in Liquidation Design

The Auto-Deleveraging (ADL) system failed because:

• The HLP Vault’s "health" appeared fine (thanks to shared collateral).

• Losses concentrated in the vault instead of spreading across the market.

Part 4: Case Study – The JELLY Attack Step-by-Step

4.1 Phase 1: The $4M Short Trap

• Attackers built a $4M short position on Hyperliquid.

• Used wash trading to inflate open interest (OI) without moving prices.

4.2 Phase 2: The Spot Market Blitz

• JELLY’s 1% market depth was just $72K—easy to manipulate.

• Coordinated buys spiked the price 500% in 1 hour.

4.3 Phase 3: Liquidation Cascade

• Polluted oracles fed into Hyperliquid’s mark price.

• The $4M short was force-liquidated onto the HLP Vault.

• ADL never triggered; losses socialized to LPs.

4.4 Aftermath

• Binance/OKX listed JELLY perpetuals mid-attack, worsening losses.

• Hyperliquid delisted JELLY and compensated users.

• HLP Vault’s unrealized losses hit $12M (official loss: $700K).

Conclusion: The "Mark Price Mirage"

The JELLY attack revealed:

1. Oracle fragility: "Multi-source" indexes rely on the same few illiquid markets.

2. Median weakness: Useless against small-sample manipulation.

3. Blind trust in mark prices: Platforms treat them as gospel, even when poisoned.

Solution: Design mechanisms that account for game theory, not just math. Until then, mark prices remain weapons waiting to be wielded.

Key Terms:

• Mark Price: The "fair" price used for liquidations (vs. last traded price).

• HLP Vault: Hyperliquid’s pooled liquidity system.

• ADL (Auto-Deleveraging): A mechanism to socialize losses during extreme volatility.

Michael Saylor’s MicroStrategy pioneered this strategy, transforming his company into a $100B+ behemoth that even outpaced Nvidia’s growth. As detailed in our earlier analysis, the core logic is simple: Publicly traded firms access cheaper, unsecured leverage—a privilege unavailable to retail traders.

Now, attention is shifting beyond Bitcoin. Ethereum-based treasury strategies—led by firms like Sharplink Gaming (SBET, Joseph Lubin) and BitMine (BMNR, Thomas Lee)—are gaining traction. But is an Ethereum treasury viable?

In this article, we argue that Ethereum treasury companies are poised to outperform Bitcoin counterparts due to three structural advantages:

1. Higher volatility → Better convertible bond terms.

2. Native yield → Sustainable dividends for preferred shares.

3. Reflexive mNAV premiums → Efficient ATM fundraising.

I. Sourcing Liquidity: The Lifeblood of Treasury Companies

Token projects adopt treasury strategies primarily to tap into traditional liquidity, especially as altcoin markets dry up. These firms secure unsecured (non-recourse) capital through:

1. Convertible bonds (CBs): Debt convertible to equity, with proceeds used to buy more crypto.

2. Preferred shares: Fixed-income instruments offering annual dividends.

3. At-the-market (ATM) offerings: Direct public stock sales for real-time funding.

II. Why Ethereum CBs Trump Bitcoin CBs

Convertible bonds attract institutional investors via:

• Downside protection + upside exposure.

• Volatility arbitrage (gamma trading).

Here, Ethereum’s higher historical and implied volatility (Fig. 1) becomes a killer edge:

• CBs backed by ETH naturally embed this volatility, making them more attractive to hedge funds.

• Higher vol allows ETH treasuries to issue CBs at richer valuations, lowering funding costs.

Caveat: If ETH’s long-term CAGR (Fig. 3) falters, bond repayment risks emerge—a scenario less likely with Bitcoin.

(Fig. 1: ETH vs. BTC volatility | Fig. 3: 4-year CAGR comparison | Source: Artemis)

III. Preferred Shares: Ethereum’s Yield Advantage

Unlike Bitcoin treasuries reliant on price appreciation, ETH treasuries leverage native yield (staking, restaking, lending)—currently ~3.5% annually (Fig. 4). This:

• Boosts creditworthiness for preferred shares.

• Creates non-directional exposure: Institutions can support Ethereum’s security (e.g., validating) without betting on ETH price.

(Fig. 4: ETH staking yield | Source: Artemis)

IV. ATM Offerings: The mNAV Flywheel

For crypto treasuries, mNAV (market cap/net asset value) acts like a P/E ratio:

• ETH treasuries deserve higher mNAV premiums due to native yield.

• Elevated mNAV enables reflexive fundraising: Issue shares at premium → buy more ETH → boost NAV per share → repeat.

V. Screening Treasury Companies: A Framework

• Retail-driven (e.g., SBET): Relies on charismatic leadership (Lubin) and transparency to fuel ATM demand.

• Institution-focused (e.g., BMNR): Leverages capital markets expertise (Lee) for CB/preferred deals.

VI. Ethereum’s Decentralization Imperative

ETH’s stake centralization (Fig. 5) is a critical vulnerability. Treasuries can help by:

• Diversifying staking providers.

• Running independent validators.

(Fig. 5: ETH staking distribution | Source: Artemis)

VII. Valuation: MicroStrategy Meets Lido

ETH treasuries combine MicroStrategy’s capital efficiency with Lido’s yield capture—but with superior economics:

• Lido comparison: At ~$30B TVL, Lido’s implied valuation exceeds $300B. ETH treasuries could surpass this via TradFi inflows.

• MicroStrategy benchmark: If SBET/BMNR collectively hit 20% of MSTR’s $120B valuation (~$24B), today’s $8B combined cap leaves ample upside.

Conclusion

Ethereum treasury companies are uniquely positioned to:

1. Outraise Bitcoin peers via volatility-optimized CBs.

2. Sustain dividends through native yield.

3. Accelerate decentralization by diversifying stake.

As TradFi capital floods in, ETH treasuries may redefine crypto’s role in global markets—just as MicroStrategy did for Bitcoin.

(Fig. 2: BMNR vs. MSTR volatility | Fig. 6: ETH treasury holdings | Source: Artemis, strategicethreserve.xyz)

Key Stats:

• ETH CAGR (4Y): ~35% (vs. BTC’s ~25%).

• ETH staking yield: 3.5% (vs. BTC’s 0%).

• SBET + BMNR mNAV: ~1.2x (vs. MSTR’s 1.8x).

The race to become the "MicroStrategy of Ethereum" is on—and the winners will reshape both chains.

Protocol Design: Hybrid Order-Book + AMM + Aggregator
Hyperion is a hybrid decentralized exchange built natively on Aptos. It fuses an on-chain order book with concentrated-liquidity AMM (think Uniswap V3) and a novel Directional Liquidity Market Maker (DLMM).

• DLMM dynamically concentrates liquidity within price bands, delivering zero-slippage swaps even for volatile assets.

• Aggregator Router, launched in June, splits routes across every Aptos DEX to surface the best price and lowest slippage.

• Full-Stack Trading Layer adds limit orders, yield vaults, and Drips incentives, all powered by Aptos’s parallel execution engine.

Funding Backing: OKX, Maelstrom, Aptos Labs
In April 2025 Hyperion closed a strategic round led by OKX Ventures and Aptos Labs. Maelstrom (Arthur Hayes’ family office) and Mirana Ventures followed on; amounts were not disclosed.

On-Chain Metrics: Volume King of Aptos

• $6.5 B cumulative volume since launch

• $1.3 B TVL (Total Value Locked) as of July

• $1.25 – 1.5 B average daily volume; peak at $1.74 B

• Top-12 global DEX by 30-day volume ($4 B+) per DefiLlama

• 940 k cumulative on-chain participants

Dual-Token Economy: RION & xRION

• RION (100 M max supply) is the tradable utility token—used for fees, rewards, and governance.

• xRION is a non-transferable escrow token earned by staking RION for up to 52 weeks; voting power decays linearly to incentivize long-term alignment.

• 5 % of total RION is reserved for a genesis airdrop: 3 % unlocked at TGE, 2 % vested linearly over the following month.

Airdrop & Community Incentives
Users accumulate Drips points via trading, LPing, or completing quests. Points translate directly into airdrop eligibility and Launchpad whitelist spots. An extra lottery reserves RION for ~800 random wallets that qualified for the original 2022 Aptos airdrop.

How the Binance Wallet TGE Works

• Window: July 16, 16:00–18:00 UTC

• Cap: 3 BNB per user

• Mechanism: BNB is locked in the bonding-curve contract; RION price updates with every purchase.

• Trading: During the two-hour window, RION is only tradable inside the event page. After closure, unsold BNB is refunded and all RION becomes freely transferable.

Aptos Ecosystem Snapshot
Aptos now hosts 187 live projects, leads rival Move-based chain Sui in daily active users (~1 M vs 830 k), and has cultivated a $633 M stable-coin market cap . Hyperion’s liquidity infrastructure is positioned as the go-to hub for this rapidly expanding ecosystem.

Social Prediction Platform on Base

Upside is a social prediction market constructed on the Base blockchain network. Its core mechanism revolves around predicting and betting on the spread of social content. Users can upload links they believe have the potential to go viral, such as tweets, articles, or videos. The platform then creates a standalone market around each link. Other users can participate in the prediction by purchasing "upvotes" to determine whether the content will gain widespread attention.

The act of purchasing "upvotes" requires the payment of USDC, a stablecoin, with an initial price of $0.01. A maximum of 1 million upvotes can be issued, and the price increases dynamically with the volume of purchases. Users can either hold onto their upvotes to wait for appreciation or sell them midway to earn profits. All transactions are recorded on-chain, ensuring transparency, traceability, and public accountability.

The platform implements a "unique link market" system, where the same content cannot be duplicated. The first uploader has exclusive creation rights, effectively incentivizing the early discovery of content. Each high-quality market period will receive rewards from the platform's "prediction pool," which are distributed proportionally among the link uploader, the original content creator, and the upvote participants in the form of USDC.

Mechanism Design and Incentive Structure

Compared to traditional prediction markets that focus on objective outcomes, such as Polymarket, Upside's mechanism is based on subjective trend judgments of content popularity, aligning more closely with users' logic and judgment patterns in social media environments. It is not about predicting "whether an event will happen," but rather "which content might go viral."

Upside's "unique link market" mechanism ensures that each social link can only create one market, avoiding redundant competition and clearly incentivizing content discoverers. This model differs from content ownership-based protocols like Zora, which emphasize the uploading and holding of content. Upside does not require users to migrate or host the original content; it uses external links as market carriers, focusing on speculation rather than ownership.

The platform offers diversified revenue paths, with all rewards distributed in USDC, covering five main user roles:

• Curators: If the uploaded link receives the most upvotes in a round, they receive a 5% reward from the prediction pool.

• Voters: Holders of upvotes in the market share an 80% reward, distributed proportionally based on their ticket holdings.

• Traders: Earn price differences by buying low and selling high, with no platform fees currently imposed.

• Inviters: After inviting users, they can receive 50% of the protocol fees generated by the invited users for the first 50 days.

• Creators: If the original content becomes a winning market, they receive a 15% reward from the prediction pool.

It is worth noting that a single piece of content can continuously become the winning market across multiple prediction rounds, allowing relevant participants to earn rewards repeatedly.

Implementation and Anti-Manipulation Measures

In terms of execution, Upside employs mechanisms such as on-chain records, minimum funding thresholds, and a five-minute settlement delay to prevent manipulative behaviors. All functions operate on the Base network, which offers low transaction costs and high processing efficiency. The user entry barrier is low, requiring only a link to create or join a market. Currently, the platform primarily supports content from X (formerly Twitter), with potential future expansion to more platforms.

Team Background and Development Progress

As of now, the core development team of Upside has not disclosed any information.

The platform launched on June 10, 2025, and is currently in an invitation-only registration phase, with a limited user base mainly concentrated in the crypto community. Some users have reported registration delays or content verification failures during peak hours.

According to information from WellFound, Upside completed a pre-seed funding round in December 2024, raising $1.2 million at a valuation of $10 million. Specific details about investors, equity structure, and agreement terms have not been publicly disclosed, nor has there been an official press release.

From the current functionality, the platform already has core mechanisms for market creation, trading, pricing, and incentive distribution. Future expansions may include community features such as leaderboards and historical records. Overall, the platform is still in its early stages, with mechanisms and functions undergoing continuous iteration.

In the turbulent world of blockchain, there was a chain that, in the simplest way, embraced the most complex trends of the times. It may not have been the most advanced, nor the most elegant, and was even once regarded as a "nest for speculators." Yet, it single-handedly supported the prosperity of an era.

This chain is called BNB Chain.

Now, as the focus shifts to Layer 2 solutions, Solana, Sui, and other public chains, BSC quietly restarts its strategy, and Binance reorients its direction, heavily investing in ecosystem reconstruction. Is this a desperate gamble or a rebirth of an old tree with new buds?

In this drama of "Empire Strikes Back," what we see is not just the renewal of a chain, but a multifaceted clash of faith, strategy, and destiny.

I. Empire Building: From Binance Chain to Rising from the Grassroots

---"The great river flows east, washing away all."---

1. Binance Chain

In April 2019, Binance launched Binance Chain, but it was a "non-smart chain"—its goal was to support the Binance DEX, focusing on transfer speed and stability, without support for smart contracts, let alone ecosystem construction. At that time, it was merely a "complementary chain" within the Binance ecosystem, and no one considered it a real competitor to Ethereum.

2. BSC (Binance Smart Chain)

However, in September 2020, everything changed. BSC (Binance Smart Chain) emerged out of nowhere.

This is an EVM-compatible chain, with low gas fees, fast block generation, and low deployment thresholds. But what truly brought it onto the historical stage were two weapons: Binance's resource integration capabilities and the narrative红利 of the times.

BSC has certain innovations in its consensus algorithm. Its PoSA (Proof of Stake Authority) consensus algorithm combines the functions of Delegated Proof of Stake (DPoS) and Proof of Authority (PoA) mechanisms, built on a network of 21 validator nodes, with second-level block generation times that can establish a high-speed infrastructure for DeFi protocols. To date, the BNB Smart Chain has 50 validators.

3. BNB Chain

In February 2022, BNB Chain was officially launched, merging the BNB Beacon Chain (formerly Binance Chain) and the BNB Smart Chain (formerly Binance Smart Chain). The BNB Beacon Chain focuses on governance (staking and voting), while the BNB Smart Chain continues to serve as the infrastructure, supporting the construction of a vast DApp ecosystem.

4. opBNB

OpBNB is a Layer 2 scaling solution aimed at enhancing the performance of the BNB Smart Chain using the Optimism OP Stack. This solution offers high throughput, low transaction fees, and extremely efficient transaction processing, suitable for large-scale Web3 applications.

Its scalability surpasses the limitations of Layer 1, with a transaction processing capacity (TPS) exceeding 4,000 transactions per second.

OpBNB's average gas fees are as low as $0.001, providing high throughput and cost-effective transactions, thereby significantly improving user experience.

5. BNB Greenfield

BNB Greenfield is a decentralized storage and blockchain storage solution, aiming to leverage the power of decentralized technology in the realms of data ownership and data economics. Its main features include: native cross-chain programmability, EVM-compatible storage, high-speed decentralized storage, and seamless migration from Web 2.0.

6. BNB

BNB (Binance Coin) stands for "Build and Build." In addition to fueling transactions on the BNB Chain (similar to gas on Ethereum), BNB also serves as a governance token. Holding BNB grants the right to voice opinions and is a prerequisite for participating in the decentralized on-chain governance of the BNB Chain.

7. MVB (Most Valuable Builder) Program

In February 2021, Binance announced the launch of the Most Valuable Builder (MVB) program under a $100 million DeFi seed fund to bridge the DeFi and CeFi sectors. The main purpose of this program is to help high-quality startup projects on the Binance Smart Chain achieve more innovative changes, gain industry experience and funding support, and accelerate the coordinated development of the community and projects.

That year marked the beginning of DeFi. SushiSwap, Yearn, and Curve were blazing trails on Ethereum. Meanwhile, Ethereum itself, plagued by high fees and severe congestion, became a "developer's purgatory." Against this backdrop, BSC emerged as the first destination for developers "fleeing Ethereum."

What followed was a dual-engine drive of "chain games + Memes": CryptoBlades, PancakeSwap, Safemoon, BabyDoge, and others flourished, with TVL skyrocketing and daily active users surging.

At the same time, numerous competitors such as OKT Chain, HECO Chain, TRON Chain, and Polygon entered the fray. However, except for Polygon (which successfully transformed later), most of them faded away. BSC, with its "cheap, efficient, and traffic-driving" strategies, ultimately survived into the next era.

II. The Throne Tilted: From Peak Traffic to Marginal Silence

1. The Peak Canvas: Glorious Presentation

In May 2021, BSC's DeFi total value locked (TVL) once exceeded $20 billion, second only to Ethereum among all public chains.

Daily active addresses exceeded 2 million, and PancakeSwap's 24-hour transaction volume consistently ranked first in the entire network for several months.

Memes like Safemoon and BabyDoge fueled community frenzy on the chain, attracting a large number of retail investors to "mine" and "farm."

2. Sudden Traffic Shift: The Siphoning Effects of Solana and L2

Solana's "Retail Magnet":

Since Q4 2024, Solana's daily active addresses have been on the rise, reaching a 7-day average of approximately 1.7 million on May 7, 2025, matching BSC's activity level for the first time.

Pump.fun's low-threshold meme issuance model on the chain attracted creators from Telegram and TikTok, driving the activity of millions of long-tail wallets.

L2's Diverse Bloom:

Over 60 Ethereum Layer 2 solutions, including Arbitrum, Optimism, Base, Mantle, and Scroll, are developing in parallel. On one hand, they are reconstructing the EVM security narrative; on the other, they are fragmenting developers, TVL, and users.

The industry began to worry about "liquidity fragmentation." Multiple researchers in Cointelegraph columns pointed out that although the surge in L2 numbers is a sign of ecological prosperity, it also directly reduces the stickiness to a single Layer 1.

3. BSC's Marginal Silence: Innovation and Regulation

TVL and Returns:

As of June 6, 2025, BSC's TVL is approximately $5.9 billion, only one-third of its peak value.

In the past year, the BNB Chain's TVL shrank by 11% within 30 days, and DApp weekly transaction volume decreased by 25%.

Innovation and Business Card:

When Solana repackaged the "retail wealth story" with high performance and memes, and Ethereum L2 attracted developers with security and modularity, BSC seemed to lack its own iconic phenomenon.

Regulation and Brand Pressure:

Binance CEX faced a series of heavy regulatory blows globally. With CZ handing over the baton to Richard Teng, the BSC ecosystem was under public pressure, with developers and funds gradually moving to compliance-friendly or new narrative chains.

"Prosperous but not conservative, declining but not perishing, this is the norm of an empire."

From its peak in 2021 as the second-largest TVL chain globally during the DeFi boom, BSC's trajectory was contrasted sharply with the "retail magnet" effect of Solana and the diverse bloom of Ethereum L2s between 2024 and 2025. These factors led to a decline in TVL, reduced daily active users, a vacuum in brand narrative, and regulatory overhang. The rise and fall, and the potential for resurgence, set the stage for the "rekindling" that follows.

III. The Dynasty Strikes Back: Can BSC Become the Focus of the New Order Again?

---"When fortune departs, even heroes are not free; when fortune arrives, the whole world is in league."---

1. Regaining Confidence: CZ's Return and Construction!

On September 28, 2024, CZ was released, and the "big brother" returned. After his release, Zhao Changpeng posted his first tweet in four months, simply greeting the crypto community with a "gm."

Subsequently, the active interactions between CZ and the "number one sister" on X ignited community enthusiasm. For example, CZ retweeted a community user's Mubarak meme post, while the "number one sister" actively engaged with the community, acting as Binance's top customer service representative and responding to user inquiries. This directly led to a surge in Meme coin trading volumes, with Mubarak's daily trading volume reaching nearly $100 million.

2. Meme Rekindling: The Wealth Effects of TST and MUBARAK

$TST

The story began in February 2025 when BNB Chain released a FourMeme demo video and created the TSTtoken.Subsequentclarificationsandconstructionsbythe"bigbrother"ledtocommunityjokesthatitwaslike"beingabitshyabouttouchingsomethingforthefirsttimeinacommercialsetting."The"bigbrother"acknowledgedthathewasstilllearning,butafteraseriesoftwistsandturns,TST was directly listed on spot exchanges, creating a wealth effect on the BNB Chain!

$MUBARAK

On March 12, the Abu Dhabi investment company MGX invested $2 billion to acquire a minority stake in Binance.

On March 13, CZ himself retweeted the media news about Binance accepting MGX's investment.

At 2:38 PM (UTC+8) on March 13, Binance's Chinese post was published, accompanied by an image of a "head covered with a cloth."

At 5:20 PM (UTC+8) on March 13, CZ simply posted the word "MUBARAK" (Arabic for "blessing") and referenced Binance's Chinese tweet, thus拉开the curtain on $MUBARAK!

3. Cooperative Expansion: USD1 Stablecoin Ignites New Narrative

The strategic importance of stablecoins has increased:

In the post-FTX era, on-chain liquidity is increasingly concentrated in stablecoins. The U.S. Senate passed the GENIUS Act with a vote of 66-32, marking a milestone in the imminent implementation of the U.S. stablecoin regulatory framework.

USD1, endorsed by the Trump family:

USD1 is a dollar-pegged stablecoin launched by @worldlibertyfi (WLFI) in March 2025, initially minted on Ethereum (ETH) and Binance Smart Chain (BSC), and listed on Binance spot on May 23, 2025.

The introduction of USD1 not only supplements BSC's U.S. dollar-denominated asset landscape but also provides a new value anchor for DeFi, GameFi, and the Meme track.

The "$B" ignition effect:

Initially, the narrative of BwasastheBNBChainmascot.InMay,theBUILDonprojectofficiallyannouncedtheadditionofUSD1 as a core trading pair. This move directly linked $B to the WLFI project, transforming it into a core token tied to USD1 and beginning to absorb USD1's liquidity.

Two days after BUILDon added the USD1 trading pair, it announced a USD1 trading competition in collaboration with the Fourmeme platform. In the following days, Baccountedforover50USD1 trading volume, becoming the de facto main liquidity pool for USD1.

Subsequently, with BUILDon's listing on Binance Alpha and WLFI's announcement of purchasing $B, a series of positive developments directly propelled its market value upward, with a peak fully diluted valuation (FDV) of $460 million, further igniting emotions on BSC.

4. Binance Alpha Sector: The "IPO Flywheel" Under Liquidity Dilemma

Background Challenges:

Between 2024 and 2025, many projects that landed on Binance spot often experienced a "high open, low close" trend, becoming the endpoint for institutional and early-round liquidity exits. Retail investor confidence was shaken, platform secondary market trading volumes plummeted, and community users were constantly spreading fear, uncertainty, and doubt (FUD).

Alpha Sector Takes the Stage:

On December 17, 2024, Binance Wallet launched Binance Alpha, aimed at discovering emerging crypto projects and providing users with an entry point to discover and shape the future of the crypto ecosystem through early-stage projects. The launch of Binance Alpha, focusing on projects with lower market caps and earlier stages, not only removed the stricter listing barriers of Binance spot but also offered more options for risk-tolerant community users and project teams eager to list on Binance.

AlphaPoints Mechanism:

On April 25, 2025, Binance launched the AlphaPoints scoring system. Initially, users who traded tokens on the Alpha sector were airdropped tokens. The introduction of AlphaPoints sparked a frenzy of daily score brushing, as users had to reach certain score thresholds to qualify for airdrops of newly listed Alpha projects or participate in Binance Wallet's initial coin offerings (ICOs).

The launch of AlphaPoints further fortified the moat around Binance and the BNB Chain, with multiple effects:

First, it expanded new user acquisition channels:

Given the visible early-stage benefits, community users, ranging from 18-year-old college students to 90-year-old grandmothers, mobilized their extended families to brush Alpha scores together. It became a new source of income during the liquidity downturn, with community users asking each other daily: "Have you done your Alpha today?" This highlights the effectiveness of Alpha in attracting new users.

Second, it increased trading volumes:

The demand for score brushing directly drove up the number of DEX transactions and on-chain gas consumption, especially on the BNB Chain, as brushing Alpha scores on BSC offers double the transaction volume.

Third, it suppressed competing platforms:

By locking in community user traffic with AlphaPoints, it weakened the siphoning effect of pump.fun and other competing trading platforms on retail investors.

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"number one sister" on X ignited community enthusiasm. For example, CZ retweeted a community user's Mubarak meme post, while the "number one sister" actively engaged with the community, acting as Binance's top customer service representative and responding to user inquiries. This directly led to a surge in Meme coin trading volumes, with Mubarak's daily trading volume reaching nearly $100 million.

2. Meme Rekindling: The Wealth Effects of TST and MUBARAK

$TST

The story began in February 2025 when BNB Chain released a FourMeme demo video and created the TSTtoken.Subsequentclarificationsandconstructionsbythe"bigbrother"ledtocommunityjokesthatitwaslike"beingabitshyabouttouchingsomethingforthefirsttimeinacommercialsetting."The"bigbrother"acknowledgedthathewasstilllearning,butafteraseriesoftwistsandturns,TST was directly listed on spot exchanges, creating a wealth effect on the BNB Chain!

$MUBARAK

On March 12, the Abu Dhabi investment company MGX invested $2 billion to acquire a minority stake in Binance.

On March 13, CZ himself retweeted the media news about Binance accepting MGX's investment.

At 2:38 PM (UTC+8) on March 13, Binance's Chinese post was published, accompanied by an image of a "head covered with a cloth."

At 5:20 PM (UTC+8) on March 13, CZ simply posted the word "MUBARAK" (Arabic for "blessing") and referenced Binance's Chinese tweet, thus拉开the curtain on $MUBARAK!

3. Cooperative Expansion: USD1 Stablecoin Ignites New Narrative

The strategic importance of stablecoins has increased:

In the post-FTX era, on-chain liquidity is increasingly concentrated in stablecoins. The U.S. Senate passed the GENIUS Act with a vote of 66-32, marking a milestone in the imminent implementation of the U.S. stablecoin regulatory framework.

USD1, endorsed by the Trump family:

USD1 is a dollar-pegged stablecoin launched by @worldlibertyfi (WLFI) in March 2025, initially minted on Ethereum (ETH) and Binance Smart Chain (BSC), and listed on Binance spot on May 23, 2025.

The introduction of USD1 not only supplements BSC's U.S. dollar-denominated asset landscape but also provides a new value anchor for DeFi, GameFi, and the Meme track.

The "$B" ignition effect:

Initially, the narrative of BwasastheBNBChainmascot.InMay,theBUILDonprojectofficiallyannouncedtheadditionofUSD1 as a core trading pair. This move directly linked $B to the WLFI project, transforming it into a core token tied to USD1 and beginning to absorb USD1's liquidity.

Two days after BUILDon added the USD1 trading pair, it announced a USD1 trading competition in collaboration with the Fourmeme platform. In the following days, Baccountedforover50USD1 trading volume, becoming the de facto main liquidity pool for USD1.

Subsequently, with BUILDon's listing on Binance Alpha and WLFI's announcement of purchasing $B, a series of positive developments directly propelled its market value upward, with a peak fully diluted valuation (FDV) of $460 million, further igniting emotions on BSC.

4. Binance Alpha Sector: The "IPO Flywheel" Under Liquidity Dilemma

Background Challenges:

Between 2024 and 2025, many projects that landed on Binance spot often experienced a "high open, low close" trend, becoming the endpoint for institutional and early-round liquidity exits. Retail investor confidence was shaken, platform secondary market trading volumes plummeted, and community users were constantly spreading fear, uncertainty, and doubt (FUD).

Alpha Sector Takes the Stage:

On December 17, 2024, Binance Wallet launched Binance Alpha, aimed at discovering emerging crypto projects and providing users with an entry point to discover and shape the future of the crypto ecosystem through early-stage projects. The launch of Binance Alpha, focusing on projects with lower market caps and earlier stages, not only removed the stricter listing barriers of Binance spot but also offered more options for risk-tolerant community users and project teams eager to list on Binance.

AlphaPoints Mechanism:

On April 25, 2025, Binance launched the AlphaPoints scoring system. Initially, users who traded tokens on the Alpha sector were airdropped tokens. The introduction of AlphaPoints sparked a frenzy of daily score brushing, as users had to reach certain score thresholds to qualify for airdrops of newly listed Alpha projects or participate in Binance Wallet's initial coin offerings (ICOs).

The launch of AlphaPoints further fortified the moat around Binance and the BNB Chain, with multiple effects:

First, it expanded new user acquisition channels:

Given the visible early-stage benefits, community users, ranging from 18-year-old college students to 90-year-old grandmothers, mobilized their extended families to brush Alpha scores together. It became a new source of income during the liquidity downturn, with community users asking each other daily: "Have you done your Alpha today?" This highlights the effectiveness of Alpha in attracting new users.

Second, it increased trading volumes:

The demand for score brushing directly drove up the number of DEX transactions and on-chain gas consumption, especially on the BNB Chain, as brushing Alpha scores on BSC offers double the transaction volume.

Third, it suppressed competing platforms:

By locking in community user traffic with AlphaPoints, it weakened the siphoning effect of pump.fun and other competing trading platforms on retail investors

In 1988, amidst the chilly winds of Wall Street, a 32-year-old man who had been shown the door by First Boston stood on the ruins of Manhattan, clutching a mortgage-backed securities proposal that no one cared about. Larry Fink could never have imagined that the company he was about to establish — BlackRock — would become the true "shadow hub" of the global financial system three decades later.

1. The Ashes of Lehman and the Fed's Tacit Approval

In October 1988, Peter Peterson and Stephen Schwarzman of Blackstone Group gave Fink an opportunity to form Blackstone Financial Management. On the surface, it was an ordinary startup, but declassified documents reveal that JPMorgan Chase secretly invested $50 million that month under extremely unusual conditions: Blackstone had to take over the "toxic" mortgage-backed assets that the Fed was unwilling to hold directly.

These assets were precisely the burden that the U.S. government was eager to shed after the Savings and Loan Crisis of the 1980s. Fink's team, with their precise pricing ability for mortgage-backed securities (MBS), not only digested these assets but also achieved a 21% annual return in 1992. The Fed's "stress test" never publicly acknowledged this cooperation, but from then on, Blackstone became the "sanitation worker" of the U.S. financial system.

2. The Aladdin System: The Birth of the "Eye of God"

In 2000, BlackRock (which had by then become independent from Blackstone) secretly developed the Aladdin risk control system. Officially, it was claimed to be just a "portfolio management software," but internal documents reveal that its true function was to monitor 75% of global dollar liquidity.

In 2006, the Aladdin system suddenly issued a red alert — the default probability of mortgage-backed securities had soared to an all-time high. BlackRock's senior executives held an emergency meeting overnight and began to short-sell collateralized debt obligations (CDOs) the next day. When the 2008 financial crisis erupted, BlackRock not only emerged unscathed but also acquired Barclays Global Investors for a mere $450 million, doubling its managed assets in an instant.

A key witness, a former BlackRock risk control employee, revealed: "The real clients of Aladdin were the Fed and the Treasury. In 2008, they used our data to decide who to save and who to let fail."

3. The Subprime Crisis: BlackRock's "Great Harvest"

On September 15, 2008, Lehman Brothers filed for bankruptcy. On the same day, the U.S. Treasury urgently granted BlackRock an exclusive contract to manage the toxic assets of "zombie banks" such as Bear Stearns and AIG.

In 2009, BlackRock's managed assets soared from $1.3 trillion to $3.2 trillion, equivalent to the GDP of Germany.

In 2010, the Greek debt crisis broke out, and BlackRock was hired by the European Union as a "consultant," while simultaneously short-selling the euro.

"This is not asset management; it is financial warfare," said a former SEC official in an unpublished congressional hearing.

Consultation Note: Real-World-Assets

Prequel to Blackstone: A Capital Monster Born from the Rubble of the Cold War

"Capital never sleeps; it only evolves in the shadows."

In 1988, the U.S. financial system was struggling to recover from the aftershocks of the 1987 "Black Monday" stock market crash. Wall Street titans were busy repairing their balance sheets, while a young man named Larry Fink smelled a more dangerous opportunity amidst the rubble.

He had just been fired by First Boston for "excessive risk-taking" — the mortgage-backed securities (MBS) department he led had lost $100 million due to interest rate fluctuations. But Fink knew that the real mistake was not his trading strategy but Wall Street's short-sightedness. Mortgage-backed securitization would become the most lethal weapon in the global financial system over the next three decades.

Section 1: Wall Street's Discarded Piece, the Fed's Pawn

In October 1988, Peter Peterson, co-founder of Blackstone Group, gave Fink an opportunity to establish a fixed-income investment subsidiary under Blackstone. This company would become the predecessor of BlackRock.

But little known to many, JPMorgan Chase secretly invested $50 million at the same time, on the condition that BlackRock would take over a batch of "special assets" — the non-performing mortgages that the Fed was unwilling to hold directly. These assets, remnants of the 1980s Savings and Loan Crisis, were a burden the U.S. government was eager to shed but could not sell publicly for fear of causing market panic.

Fink's team re-priced these "toxic assets" with complex mathematical models and achieved a 21% annual return in 1992. This feat stunned Wall Street, but more crucially, the Fed remembered BlackRock's name.

In 1994, the U.S. Treasury first outsourced the management of part of its national debt to private institutions, and BlackRock became one of the first selected asset management companies. From that moment on, it was no longer an ordinary Wall Street investment bank but the "shadow liquidator" of the national financial system.

Section 2: The Aladdin System: The "Eye of God" in the Financial World

On the eve of the dot-com bubble burst in 2000, BlackRock launched an internal project code-named "Aladdin." Officially, it was claimed to be a "risk management system" for monitoring portfolio fluctuations. But its true function was far more powerful than publicly described — it was the world's first "financial quantum computer" capable of tracking the flow of trillions of dollars in real-time.

Aladdin's core advantage lay in data monopoly. By analyzing the trillions of dollars in assets managed by BlackRock, it could predict market trends, liquidity crunch points, and even individual traders' buying and selling behaviors. In 2006, the system suddenly issued a red alert: the default rate on subprime mortgages was about to break historical records.

BlackRock's senior executives held an emergency meeting overnight. The next day, the company began secretly short-selling mortgage-backed securities (MBS) and collateralized debt obligations (CDOs). When the 2008 financial crisis erupted and Lehman Brothers and Merrill Lynch collapsed, BlackRock not only emerged unscathed but also made over $8 billion in short-selling profits.

What's more eerie is that on September 15, 2008 — the same day Lehman filed for bankruptcy — the U.S. Treasury urgently granted BlackRock an exclusive contract to manage the toxic assets of "zombie banks" such as Bear Stearns and AIG.

"This is not a rescue; it is a transfer of power," revealed a former New York Fed official in an anonymous interview.

Section 3: The Subprime Crisis: BlackRock's "Great Harvest"

In 2009, while the global financial market was still mired in the muck, BlackRock's assets under management (AUM) soared from $1.3 trillion to $3.2 trillion, equivalent to the GDP of Germany. Its expansion was not accidental but a carefully designed "crisis arbitrage":

• Acquisition of Barclays Global Investors: In June 2009, BlackRock acquired BGI for $13.5 billion, becoming the world's largest asset management company overnight. But the transaction details revealed that the Fed provided low-interest loan support behind the scenes.

• The "Two-Faced Role" in the Greek Debt Crisis: In 2010, the EU hired BlackRock as a "debt restructuring consultant," but at the same time, BlackRock's hedge fund division was aggressively short-selling the euro.

• The Ultimate Form of "Too Big to Fail": In 2013, BlackRock's managed assets exceeded $4 trillion, surpassing Japan's foreign exchange reserves. It was no longer just a company but the de facto liquidator of the global financial system.

Chapter Conclusion

BlackRock's rise is by no means a simple business success. It is the product of the deep integration of financial capital and state power after the end of the Cold War. When the Fed needs a "shadow tool" to implement policy, BlackRock is the invisible hand; when Wall Street needs someone to swallow toxic assets, BlackRock is the gaping maw.

And today, it is replicating the same strategy in the blockchain world.

The RWA Battle: BlackRock's Blockchain Gambit

"Tokenization is not a technological revolution; it is a transfer of power."

In June 2023, Larry Fink stood on the podium of the New York Stock Exchange, facing global financial media, and announced a decision that could shake financial history: BlackRock officially entered the field of Real-World-Asset (RWA) tokenization.

Updates on Cryptocurrency Price Movements

Bitcoin (BTC): Today's price stands at US95,328.29,witha24−hourtradingvolumeofUS31,166,387,613. The price has increased by 2.42% in the past 24 hours and by 8.73% over the past seven days. The circulating supply is 19.86 million BTC, giving Bitcoin a market capitalization of US$1,892,978,674,725.

Ethereum (ETH): Today's price is US1,798.08,witha24−hourtradingvolumeofUS15,421,031,527. The price has risen by 1.79% in the past 24 hours and by 13.30% over the past seven days. The circulating supply is 120.73 million ETH, with a market capitalization of US$217,078,335,234.

Ripple (XRP): Today's price is US2.30,witha24−hourtradingvolumeofUS4,074,501,269. The price has increased by 2.92% in the past 24 hours and by 9.92% over the past seven days. The circulating supply is 58.44 billion XRP, giving Ripple a market capitalization of US$134,644,880,891.

The Peak of Bitcoin's Current Bull Market May Occur Around August 2025

After a thorough review of Bitcoin's two bull-bear cycles, I've identified a pattern: each bull market, from its lowest bottom to its highest peak, spans roughly 884 days, followed by a correction phase marking the onset of a prolonged bear market.

Specifics:

• First Cycle: From the bottom in January 2015 to the peak of the bull market in December 2017, it took approximately 884 days.

• Second Cycle: From the bottom in January 2019 to the next peak in November 2021, it also took about 884 days.

For the current bull market, with Bitcoin hitting a bear market bottom near US$15,000 in October 2022, projecting this timeframe suggests the peak may occur around August 2025.

Additionally, I've observed that the interval between the troughs of two consecutive bull markets is roughly 1,290 days. If this pattern continues, the next bear market bottom may emerge around June 2026.

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BTC Bounces Back, Altcoins Diverge: A New Cyclical Singularity?

Trump's series of policies have sparked global market pessimism, evident in various K-line trends, pushing global markets into oversold territory.

However, amidst this backdrop, there's been a moderate shift in the political landscape, leading to a slight recovery in market sentiment. During this recovery, I've noticed a crucial detail:

While BTC has rebounded, the vast majority of altcoins have not followed suit, indicating a significant divergence.

Typically, Bitcoin, as the leader of the crypto market, drives altcoin movements, often with altcoins experiencing more pronounced price swings.

But this time, as Bitcoin has warmed up, most altcoins have been sluggish in response, suggesting:

Profound structural changes are occurring in the market.

From a Technical Perspective:

• Bitcoin has broken through key resistance levels, standing firmly above the 200-day bull-bear dividing line.

• Currently, Bitcoin's price has stabilized above US$90,000 for a week, making a short-term reversal less likely.

• However, altcoins as a whole have yet to reach their expected positions.

Reflecting on historical data and past trading experiences, such divergences between BTC and altcoins often herald the start of a new trend.

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My Perspective:

This divergence could mark a genuine trend reversal, the singularity of a new market cycle. (However, there may still be a pullback in May; the short-term move remains a rebound, not a full reversal.)

Considering the rhythm of liquidity release, I anticipate this cycle to last four months, with altcoins taking center stage.

In the second half of the bull market, Wall Street institutions are likely to pivot towards Ethereum as the market's main driver, propelling altcoins to soar (given its vast potential), effectively cutting the retail investors who recently switched from altcoins to BTC for safety another slice. I believe this scenario is highly probable.

Moreover, there's a subtle shift in the policy landscape:

Historically, global governments have adopted a conservative stance toward blockchain, as seen in China's ban, the EU's MiCA framework, and the former SEC chair's stringent regulations.

However, the appointment of the new SEC chair could signal a pivotal reversal in regulatory direction.

In the future, more tokens may list through stock market ETFs. Combined with global fiat currency inflation and liquidity release, this could propel the market to new heights.

Of course, the mass listing of ETFs is a double-edged sword:

Capital-driven bubbles may burst like the 2000 dot-com bubble, but they could also pave the way for a new order in their wake.

The Matthew Effect, where the strong get stronger, has never ceased in the blockchain world. For example, Pump.fun has quietly started doing what Raydium does: today it stealthily launched its own AMM pool, attempting to divert the liquidity revenue that originally belonged to Raydium.

From Launchpad to AMM Pool: The Quiet Rise of Pump.fun's Meme Empire

Currently, the newly launched AMM pool (http://amm.pump.fun) has a very simple interface, allowing users to swap any token as they would with other DeFi products. However, the intentions behind this product may not be so straightforward.

Pump.fun has always attracted a large number of degens with its unique internal/external order book mechanism and memecoin culture. User transactions are first matched in Pump.fun's internal order book, relying on the platform's liquidity to complete trades. Once the internal order book is full, trades are routed to the external market, which actually depends on Raydium's liquidity pool.

Under this model, Pump.fun has been a "traffic provider" for Raydium but has also been subject to Raydium's rules. Every time a trade is routed to the external market, Pump.fun has to pay a portion of the trading fees, which ultimately flow to Raydium's liquidity providers (LPs).

Raydium itself is one of the most important AMM platforms in the Solana ecosystem and a crucial infrastructure for DeFi users to access liquidity. It also provides liquidity pool services for many projects on Solana, with its TVL (Total Value Locked) consistently ranking at the top of Solana.

The Business Logic Behind Building an AMM

By building its own AMM, Pump.fun can transfer the external market liquidity from Raydium to its own platform, thereby fully controlling the distribution of trading fees. If Pump.fun's strategy succeeds, Raydium will not only lose a portion of its liquidity sources but also face impacts on its revenue model and ecological status.

So, how does the math work out?

1. Raydium's Revenue Model: The "Hidden Cost" for Pump.fun
   Under the current model, Pump.fun's external market trades rely on Raydium's liquidity pool, and each transaction generates a certain fee that ultimately flows into Raydium's ecosystem.

Raydium's standard fee structure:

• 0.25% fee per transaction, with:

  • 0.22% allocated to Raydium's LPs.

  • 0.03% used for $RAY buybacks and ecosystem support.

Pump.fun's trading volume:

• Assuming Pump.fun's daily trading volume is $100 million, with 5% of the volume ($5 million) routed to Raydium's external market.

Pump.fun's hidden cost:

• At a 0.25% fee, Pump.fun pays Raydium $12,500 per day, amounting to approximately $4.5625 million per year.
  For a rapidly growing platform, this fee, although reduced, remains a dependency on an external platform.

2. Potential Revenue from Building an AMM
   By building its own AMM, Pump.fun can transfer the external market liquidity from Raydium to its own platform and fully control the distribution of trading fees. So, how much potential revenue can this move bring?

New revenue model:

• Assuming Pump.fun's AMM charges the same rate as Raydium (0.25%), but all fees are retained by the platform:

  • Daily external market trading volume remains at $5 million.

  • At a 0.25% fee, Pump.fun can directly earn $12,500 per day, amounting to approximately $4.5625 million per year.

  • Net revenue after LP costs: If Pump.fun's AMM does not rely on external LPs and instead provides liquidity itself, this income will be entirely retained by the platform without being shared with other liquidity providers.

3. What Else Does Pump.fun Value?
   Building an AMM not only brings direct revenue increases but also significantly enhances Pump.fun's control over the ecosystem, laying the foundation for future development.

Under the current model, Pump.fun's external market trades depend on Raydium's liquidity pool, meaning Raydium controls the user trading experience and liquidity stability. With its own AMM, Pump.fun will fully control the rules and fee distribution of the liquidity pool, thereby strengthening its control over users.

By controlling liquidity, Pump.fun can further launch more DeFi products (such as perpetual contracts, lending protocols, etc.), building a closed-loop ecosystem. For example, Pump.fun can directly support the issuance and trading of memecoins through its AMM pool, offering more options to its community.

Token Price Changes
After Pump.fun announced the launch of its AMM, Raydium's token $RAY fell sharply, with a daily decline of 20%. This phenomenon may reflect market concerns about its future revenue and status.

On the other hand, after Pump.fun built its AMM pool, the MEME token Crack, which was used to test the liquidity pool, saw its price soar, with a peak market cap of $4 million.

Contract Address:
CitRGsrgU7NjaXsxdMFc7sfsxtSnPdtkhHJqbPvhpump

The Challenge Is Clear
If the AMM runs smoothly, Pump.fun will fully control external market liquidity, significantly boosting revenue. By integrating internal and external market liquidity, Pump.fun can build a self-sufficient on-chain Meme DeFi ecosystem.

From capturing attention to controlling the flow of funds, Pump.fun is clearly transitioning from "relying on external liquidity" to "owning liquidity." An innovative platform, with a larger user base, naturally has the opportunity to shake up the traditional DeFi status quo and on-chain ecosystem.

However, whether Pump.fun can truly challenge Raydium's position in the future will depend on its ability to balance liquidity strategy and user growth. More critically, it will depend on whether the bull market continues.

Timing and fortune play a significant role. Not only are retail investors competing, but projects are also fiercely battling each other in the ring.

Note on the Link
I encountered issues while trying to parse the provided link (http://amm.pump.fun). This problem might be related to the link itself or the network conditions. If you need the content of this webpage, please check the validity of the link and try accessing it again. If you have other questions or need further assistance, feel free to ask, and I'll be happy to help.

Pakistan has introduced its first comprehensive policy framework to regulate virtual assets and virtual asset service providers (VASPs), aimed at combating money laundering, fostering innovation, and attracting foreign investment. This policy is formulated by a specialized government agency under the Anti-Money Laundering (AML) and Counter-Terrorist Financing (CTF) authorities. Currently, this proposed framework still requires approval from legislative bodies and feedback from digital asset companies operating in the country, with an expected phased implementation starting from 2026.

U.S. Securities and Exchange Commission (SEC) Considers Establishing Regulatory Sandbox for Digital Assets

The leadership of the U.S. Securities and Exchange Commission (SEC) recently indicated that it will consider establishing a regulatory sandbox for digital assets, allowing cryptocurrency exchanges to freely experiment in new areas, including possibly opening token securities trading.

The so-called "regulatory sandbox" can be viewed as a supervised secure testing area. Within this area, by setting specific restrictive conditions and establishing corresponding risk management measures, companies can test innovative products, services, and business models in a real market environment with real individual and enterprise users. For the cryptocurrency industry, the advantages of a regulatory sandbox are significant. On one hand, it can implement a prudent and inclusive regulatory mechanism to create a relatively relaxed environment for the robust development of the crypto industry, avoiding substantial harm to the emerging crypto sector due to excessive regulatory pressure; on the other hand, concentrating innovation experiments within a controllable small scope can effectively control risks, thereby exploring higher quality and efficiency regulatory measures, achieving the goal of continuously optimizing regulatory models, and effectively preventing the management dilemma of "over-regulation leads to stagnation, and laissez-faire leads to chaos."

Tokenized securities trading refers to the issuance and trading of traditional securities in the form of digital tokens on blockchains. This method of trading has many potential advantages. For instance, transaction efficiency can be greatly improved; traditional securities trading usually involves multiple intermediaries, with a lengthy settlement cycle, while tokenized securities trading relies on blockchain's distributed ledger technology to achieve nearly real-time settlement; it can also enhance market liquidity, breaking geographical restrictions, allowing investors worldwide to participate in transactions; moreover, the immutability of blockchain further enhances the transparency and security of transactions, with every transaction fully recorded on the chain, traceable and difficult to alter.

The U.S. Securities and Exchange Commission (SEC) can use the regulatory sandbox to observe and study innovative business in the crypto industry to some extent, gain an in-depth understanding of its operation models and potential risks, and accumulate valuable experience for formulating more comprehensive and effective regulatory policies in the future. At the same time, for cryptocurrency exchanges and related practitioners, this is also an opportunity to demonstrate their innovative capabilities and compliance willingness within the regulatory framework, helping to promote the entire industry towards a healthier and more orderly direction.

However, this exploratory measure will inevitably encounter many challenges in the implementation process. For instance, how to accurately set the admission conditions and operation rules of the regulatory sandbox, how to fully protect the legitimate rights and interests of investors during the innovation trial process, and how to coordinate relationships with other financial regulatory agencies are all important issues that the SEC needs to seriously consider and resolve.

Hong Kong Releases "Real World Assets (RWA) Identification and Meta Data Standards"

On April 9, 2025, the "Hong Kong Web3 Carnival - Standardization and Globalization Summit" was successfully held at the Hong Kong Convention and Exhibition Center. The summit released the "Real World Assets (RWA) Identification and Meta Data Standards." The conference also announced the official launch of the RWA registration platform.

Kenya to Introduce New Cryptocurrency Bill to Regulate Digital Assets

Kenya has announced plans to introduce new cryptocurrency legislation to regulate digital assets, aimed at optimizing customer experience. Following this statement, Kenya will introduce its first comprehensive legislation aimed at regulating the entire digital asset industry through the newly proposed "Virtual Asset Service Providers (VASP) Bill." This move marks an important step by the Kenyan government to make the rapidly growing and unregulated part of its financial system more clear and transparent, and achieve effective control.

Vietnam Pilots Allowing Enterprises to Issue Virtual Assets and Develop Crypto Exchanges

Vietnam's Ministry of Finance will take the lead and coordinate with relevant departments to formulate laws and regulations allowing Vietnamese enterprises and institutions to issue virtual assets to attract funds to support production, operations, and development. The Vietnamese government has been promoting the development of financial technology and blockchain technology in recent years, with some economic zones (such as Danang) possibly piloting innovative projects. The Vietnamese government began pilot operations of cryptocurrency exchanges in March 2025 and allowed enterprises to issue virtual assets to meet market demand while promoting the construction of relevant legal frameworks. The Vietnamese government is considering two regulatory models: one is to issue licenses to qualified enterprises allowing them to establish cryptocurrency exchanges; the other is for the government to directly manage and establish a national-level exchange. This will provide investors with a safer trading environment while strengthening government regulation of the market

According to ChainCatcher, OKX will list PROMPT (Wayfinder), with the following open times:

In April, Wayfinder announced an airdrop of 10 million tokens to players who completed social missions in the Yappers game, with 1 yap yielding approximately 2.85 - 3.7 PROMPT tokens.

Wayfinder Introduction

Wayfinder is a new AI protocol project developed by the Parallel team, aimed at bringing the power of AI agents on-chain to support Colony gameplay. Initially positioned as a tool combining AI and blockchain, it seeks to enhance blockchain interaction efficiency through AI agents (Shells) and navigation paths (Wayfinding Paths). Wayfinder can be used in various use cases in both gaming and non-gaming environments.

Wayfinder Team and Funding

Wayfinder represents Parallel's foray into the AI space from card games, with Colony being an AI-based on-chain survival simulation game where players can command AI agents to perform tasks, accumulate resources, and interact. The decision by the Parallel team to develop dedicated AI infrastructure led to the birth of Wayfinder.

• Oscar Mar: Art Director and co-founder of Parallel, previously worked at Ubisoft, and graduated from the Vancouver Institute of Media Arts.

• Perry Haldenby: Co-founder and CTO of Parallel, holds a bachelor's degree from the University of Waterloo, and was previously a co-founder at Amulyte.

• Kalos: Also a co-founder of Parallel.

More importantly, Wayfinder has received strong backing from top-tier capital, with a valuation reaching $1 billion and a total fundraising amount of $85 million:

• In October 2021, Parallel secured a $50 million round led by Paradigm, valuing the project at $500 million.

• In March 2024, the team completed another $35 million raise, with participation from Solana Ventures, VanEck, Distributed Global, among others.

Wayfinder Application Narrative

Narrative determines the project's ceiling. One pain point of Web3 AI is unclear workflows, and Wayfinder's navigation paths provide transparency, with verified paths being reusable:

• Game Resource Management: From the initial Colony game design, AI manages scarce resource generation to ensure fairness.

• General AI Agents: On-chain AI assistants with autonomous decision-making capabilities that can execute based on navigation maps.

• NFT Minting Assistant: Wayfinder acts like ChatGPT in the crypto space; once trained and relevant paths are developed, users can directly input commands.

Wayfinder Economic Model

The total supply of PROMPT is 1 billion, which is central to the ecosystem and used for participating in Wayfinder protocol governance and parameter adjustments, gas discounts, incentive mechanisms, and creating Shells:

A phased release mechanism controls the circulation pace, with plans to gradually release over three years, covering community rewards, the team, and other allocation parts.

Wayfinder Summary

Wayfinder is an AI+Web3 project with first-mover advantages in technical implementation, user experience, and ecosystem design. It is currently the top project in the Kaito Pre-TGE Mindshare. Note that the interaction deadline of April 14th is just 5 days away. Personally, I believe that transitioning from Parallel's gaming foundation to the AI track, with navigation maps at the core and a decent economic model, leaves room for substantial development if the team executes effectively.

On April 8th, Gensyn retweeted a post from Coinfund, which translated reads: "The launch of the Gensyn testnet is a milestone for the development of decentralized artificial intelligence!" It is reported that the Gensyn testnet went live on April 1st. Users can run nodes, train personal models, and track their participation in the cluster.

On April 5th, Gensyn's Chief Operating Officer, Jamico, announced the first-week data of the testnet: 5,097 verified unique users, a total of 1,892 models trained and uploaded to Hugging Face, with 10,070 instances of decentralized artificial intelligence in action.

Introduction to Gensyn

Gensyn is a blockchain-based decentralized deep learning computing protocol aimed at establishing an artificial general intelligence (AGI) computing power market. It breaks down complex machine learning tasks into multiple subtasks and leverages participants' computing resources to achieve highly parallelized computation.

Gensyn is essentially a first-layer proof-of-stake blockchain based on the Substrate protocol. It can facilitate machine learning task allocation and rewards through smart contracts, quickly realizing AI model learning capabilities and reducing the cost of deep learning training. Through an innovative verification system and computing power supply, Gensyn achieves large-scale and low-cost neural network training without the need for trust.

Gensyn System Participants

Gensyn's system mainly includes four key participants: Submitters, Solvers, Verifiers, and Challengers:

• Submitters: The end-users of the system, who provide the tasks to be computed and pay for the completed work units.

• Solvers: The main workers of the system, who execute model training and generate proofs that need to be checked by verifiers.

• Verifiers: They link the non-deterministic training process to deterministic linear computation, replicate a part of the solver's proof, and compare the distance with the expected threshold.

• Challengers: As the last line of defense, challengers review the work of verifiers and raise objections when problems are found, in hopes of earning a reward.

Gensyn Team

Gensyn was founded in 2020 by Ben Fielding and Harry Grieve, both seasoned in computer science and machine learning research:

• Ben Fielding, co-founder of Gensyn, holds a Ph.D. in Computer Science from Northumbria University.

• Harry Grieve, co-founder of Gensyn, was previously an angel investor and graduated from Brown University.

Gensyn Financing

• On June 11, 2023, Gensyn completed a $43 million Series A round led by a16z Crypto, with participation from CoinFund, Canonical Crypto, Protocol Labs, Eden Block, Jsquare, and others.

• On March 21, 2022, Gensyn completed a $6.5 million seed round with participation from Eden Block, Galaxy Digital, CoinFund, Maven11, Hypersphere Ventures, Zee Prime Capital, Entrepreneur First, Jsquare, Counterview Capital, 7percent Ventures, Id4 Ventures, and others.

Summary of Gensyn

Gensyn's core goal is to democratize AI through decentralized initiatives, enabling more people to participate in the innovation and application of AI technology. With clear technical barriers, its main functions are to train personal models and provide a computing power platform for other AI projects. There will be a huge demand in this direction, and Gensyn is likely to become one of the leading projects in this field.

On March 28th, XION tweeted: Today, at a live broadcast on the New York Stock Exchange, FintechTvGlobal market shaper and XION founder discussed how regulation will unfold, the momentum of stable B's development, and why XION has become a market shaper and industry disruptor.

Introduction to the XION Project

Unlike other Layer 1 blockchains, XION is specifically designed for consumer applications, offering a tailor-made seamless user experience for everyday users. It focuses on chain abstraction, with no wallets and no Gas fees, addressing the biggest obstacles to the widespread adoption of Web3. XION provides the infrastructure for developers to create user-friendly Web3 applications. Its vision is to build a more inclusive, efficient, and secure blockchain ecosystem through technological innovation, especially in the areas of supply chain, gaming, and social media.

XION's Financing Situation

On May 6th, 2021, XION completed a $3 million seed round of financing. Participants included Injective, Multicoin Capital, Mechanism Capital, and others.

On January 17th, 2022, XION completed an $8 million Series A round of financing. Multiple institutions and individuals participated, including Animoca Brands, Multicoin Capital, Mechanism Capital, Alliance DAO, Sonic, and DeFiance Capital.

On October 5th, 2023, XION completed a strategic round of financing, with the amount undisclosed. This round was participated in by Circle Ventures.

On April 1st, 2024, XION completed a $25 million round of financing. Participants included Multicoin Capital, Animoca Brands, Arrington Capital, Sfermion, Spartan Group, MH Ventures, Hex Trust, and other institutions and individuals.

XION's Technical Advantages

1. Meta Accounts

Meta Accounts are one of XION's core innovations. By transforming the protocol layer's smart contract accounts (SCAs) and state machines, XION has replaced the traditional private-public key model with a more intuitive Web2-style login method. Users can log in via email, social accounts, or biometric technology. This approach retains the security of decentralization while greatly simplifying the user operation process.

2. Signature Abstraction

XION employs signature abstraction technology, which decouples the user interface from the underlying private mechanisms. This allows it to support multiple private curves and be compatible with new curves that may emerge in the future. The flexibility of this technology enables XION to continuously adapt to the evolution of blockchain technology.

3. Device Independence Without Private Key Management

XION's design completely eliminates the need for users to store and manage private keys, thereby simplifying account access management. Whether through email, social login, or traditional Web3 wallets, users can interact quickly and seamlessly, increasing the popularity of the application.

4. Parametric Fee Layer

XION innovatively redefines the fee model through its parametric fee layer. Users can pay fees with any token and enjoy a "no Gas" experience through the PlatformSend function. This design significantly reduces the complexity of user operations, making the use of blockchain more intuitive and user-friendly.

Conclusion

XION's innovative design makes it one of the leading players in chain abstraction technology. Its goal is not only to serve existing users but also to attract a large number of mainstream users to participate in the Web3 ecosystem by lowering the barrier to entry. As XION continues to develop and improve, it will undoubtedly play an important role in the popularization of Web3 and the mainstreaming of blockchain technology. In the future, XION is expected to become an important force in promoting the global adoption of blockchain applications, leading blockchain technology into a new era of simplicity, ease of use, and efficiency.

Upcoming Launch Project: KERNEL

01. Project Introduction

KernelDAO is a re - staking infrastructure in the BNB Chain ecosystem, aiming to improve asset utilization efficiency through innovative staking mechanisms.

02. Project Products and Development

• Main Products: The KernelDAO ecosystem consists of three main products: KelpDAO, an Ethereum liquidity re - staking protocol; GAIN, an Ethereum airdrop and yield aggregator; and Kernel, a BNB liquidity re - staking protocol. Among them, KelpDAO is the second - largest Ethereum liquidity re - staking protocol with a TVL (Total Value Locked) of $1.389 billion. Kernel's mainnet launched on BNB Chain on December 10, 2024, and has rapidly developed with its TVL steadily climbing to $434 million.

• Funding Situation: In 2024, KernelDAO raised $10 million, with leading investors including Laser Digital and SCB Digital Ventures. Yzi Labs (formerly Binance Labs) also participated in the funding round.

03. Core Business

• Re - staking Services: Users can re - stake assets such as BNB, BTC, slisBNB, and SolvBTC. By supporting multiple protocols simultaneously, re - staked assets are transformed into high - yield instruments, enhancing the security of the BNB Chain ecosystem while improving asset utilization. For example, holders of asBNB can claim rewards from Binance Hodler, Megadrop, and Launchpool. When re - staked in Kernel, they can also receive five times the AU points from the original protocol ASTHERUS, as well as additional rewards and Kernel points from Kernel.

• Points System: The Kernel points system is an essential part of the mainnet launch, rewarding users who participate in supporting multiple protocols and re - staking assets. For instance, staking one BNB per day earns 2 KP, while staking one BTC earns 260 KP. Users can accumulate points to receive corresponding airdrop allocations.

04. Token Information

• Token Allocation: The total supply of $KERNEL tokens is 1 billion. 55% is allocated for community rewards and airdrops, 20% for private rounds, 20% for the team and advisors, and 5% for ecosystem partners.

• Recent Developments: On April 1, 2025, Binance announced that KernelDAO is the fourth project on its Megadrop platform. 40 million KERNEL tokens (4% of the total supply) will be distributed as Megadrop rewards. Another 40 million tokens will be used for other marketing activities six months after the spot listing.

05. Project Advantages

KernelDAO leverages the BNB Chain ecosystem and is deeply integrated with Binance's strategic layout. As one of the world's largest exchanges, Binance's participation provides the project with financial support, technical resources, and market influence, and also brings the potential for future token TGE to be listed on Binance. In addition, KernelDAO covers both the BNB Chain and Ethereum ecosystems, accumulating rich experience and achievements. As one of the top two projects in the LRT (Liquidity Re - staking Token) track, it has gained certain market recognition.

06. Technical Features

• Dynamic Validator Networks (DVNs): By collaborating with DVN partners such as Mira, ElectronZK, Router Protocol, and BridgeHQ, KernelDAO promotes innovative shared security, providing stronger security guarantees for the ecosystem.

• Liquidity Re - staking Tokens (LRTs): In cooperation with LST partners like Lista, Stader, and Solv, KernelDAO enhances capital efficiency. It also strengthens DeFi rewards through LRT partners such as Bedrock, StakeEase, and YieldNest, optimizing asset allocation and yield acquisition.

07. Development Plan

KernelDAO is a leading re - staking protocol that supports more than ten chains, including Ethereum, BNB Chain, Arbitrum, and Optimism, and continues to expand. In the future, KernelDAO will continue to drive re - staking innovation, offering users more diversified services and higher yields. It will also continuously improve the ecosystem, attracting more projects and users to participate, becoming a pillar of decentralized economic security.

08. Community Donation Review

Overall, KernelDAO occupies an important position in the re - staking field with its innovative re - staking model, rich ecosystem products, strong technical strength, and extensive investment support. It is expected to continue expanding in the cryptocurrency market, especially within the BNB Chain ecosystem, bringing more benefits to users and driving ecosystem prosperity in the future.

Ongoing Sale Project: Gensyn

In the era of rapid AI development, computing power has become a key bottleneck restricting AI model training and innovation. Gensyn, as a groundbreaking decentralized deep - learning computing protocol based on blockchain, is committed to breaking this bottleneck and building a global distributed machine - learning network, leading the democratization of AI computing power.

01. Innovative Technology, Restructuring the AI Computing Landscape

Gensyn's technical architecture is its core competitive advantage. It cleverly integrates distributed computing and blockchain technology to create an efficient, secure, and decentralized AI computing market.

02. Distributed Computing Network: Unleashing Global Computing Potential

Gensyn leverages under - utilized computing resources worldwide, including small - scale data centers, personal gaming computers (such as powerful computing devices with GPUs), M1/M2 Macs, and even plans to include smartphones in the future. By breaking down complex machine - learning tasks into multiple sub - tasks and distributing them to computing nodes (i.e., solvers) within the network, it achieves highly parallelized processing. This approach fully taps into the world's idle computing power, theoretically increasing the available computing capacity for machine learning by 10 - 100 times, providing unprecedented powerful computing support for AI model training.

03. Blockchain Verification Mechanism: Ensuring Trustworthy Task Execution

To ensure the correctness of multiple computing tasks and enable automatic payment, Gensyn adopts an innovative verification system based on blockchain technology, which is based on three core concepts:

• Proof - of - Learning: Certificates are generated from metadata in the intermediate optimization process to support rapid verification, significantly improving verification efficiency.

• Graph - Based Precise Localization Protocol: Using multi - granularity graph structures and cross - verification mechanisms ensures consistent task execution, ultimately confirmed by the blockchain, ensuring the accuracy and reliability of task execution.

• Truebit Incentive Game: Leveraging stake and slashing mechanisms to incentivize participants to execute tasks correctly, effectively preventing cheating and ensuring the fairness and stability of the network.

04. Star - studded Team, Leading Industry Innovation

Gensyn is backed by a strong and experienced team based in London, UK, with expertise in artificial intelligence, blockchain, cryptography, game theory, and hardware optimization.

• Co - founders: Harry Grieve, an active angel investor with a degree from Brown University, has keen insights and rich investment experience in Web2 and Web3 IT projects; Ben Fielding, a Ph.D. in Computer Science from Northumbria University, has extensive research experience in machine learning and has held senior positions in related companies. He is also an angel investor and owner of startups.

• Chief Operating Officer: Jeff Amico, former partner at a16z and General Counsel at AirSwap, with a Ph.D. from Columbia Law School, brings rich industry resources and operational management experience to Gensyn.

• Community Manager: Christine Yip, former Community Manager at the Mina Foundation, graduated from Leiden University in the Netherlands and holds a Master's degree in Structural Engineering from Delft University of Technology. She excels in community building and operations.

This diverse team, with its deep expertise and rich industry experience, can accurately grasp the direction of technological development, effectively deal with various challenges, and provide a solid talent guarantee for Gensyn's continuous innovation and stable development.

05. Capital Favor, Accelerating Project Growth

Since its establishment, Gensyn has gained high recognition and strong support from the capital market, raising a total of $50.6 million in funding.

• January 2021: Completed a $1.1 million pre - seed round led by 7percent ventures and counterview capital, with participation from Entrepreneur First and id4 ventures.

• March 2022: Raised $6.5 million in seed funding led by Eden Block, with participation from Galaxy Digital, Maven 11, CoinFund, Hypersphere, Zee Prime Capital, and other well - known institutions.

• June 2023: Successfully completed a $43 million Series A round led by a16z, with active participation from CoinFund, Canonical Crypto, Protocol Labs, Jsquare, Eden Block, and other individual investors.

These substantial funds will be used to accelerate protocol development, expand team size, and incentivize ecosystem construction, driving Gensyn to achieve its vision faster and become a leader in the decentralized AI computing field.

07. Investment Institutions

08. Development Status and Future Outlook

Currently, Gensyn has successfully launched its testnet, attracting over 150 AI projects to actively connect, demonstrating its strong appeal and development potential within the industry. The mainnet is planned to go live within 2025, focusing on optimizing cross - chain interoperability by integrating technologies such as LayerZero to achieve seamless connections with other blockchain networks, further expanding its application scenarios and ecosystem boundaries. Meanwhile, it will enhance large - scale task throughput to meet the growing demand for AI computing power, aiming to become the core infrastructure for AGI training.

Looking ahead, Gensyn is expected to fundamentally change the landscape of the AI computing market with its unique technological advantages and innovative business model, providing efficient and low - cost AI computing solutions for global developers and enterprises. With the continuous development of AI technology and the increasing demand for applications, Gensyn will play an increasingly important role in the decentralized AI track, facilitating the widespread implementation of AI innovation and applications, and pushing the entire AI industry to a new level of development. It will become an indispensable pillar of the next - generation AI computing ecosystem.