DEX

On May 25, Babylon Labs submitted a Temperature Check to Aave DAO proposing Trustless Bitcoin Vaults that would let users post native BTC on Aave V4 without bridges, wrappers, or custodians. The plan adds two Ethereum Mainnet Spokes to enable borrowing against BTC and to settle liquidations by swapping seized BTC into WBTC. Babylon Labs says the next steps could include ARFC review and later an onchain AIP vote if the snapshot sentiment is favorable.

Babylon Labs has submitted a temperature-check proposal to integrate with Aave V4, aiming to let users lock native BTC on Bitcoin and borrow assets via Aave without wrapped BTC, bridges, or custodians. The design uses Taproot-based vault scripts and introduces a non-transferable accounting asset, vaultBTC, to represent BTC locked in Babylon vaults as collateral within approved Aave contracts. Aave founder Stani Kulechov endorsed the idea on X and said Babylon has more than $4bn in BTC staked that could eventually be used as collateral.

Inertia said an exploit drained about $152,000 after attackers inflated roETH collateral pricing and borrowed against it across five lending markets. The protocol's post-mortem, published on 25 May, said the incident impacted USDC, INIT, sINIT, TIA, and roTIA during an attack window of roughly 1 hour and 13 minutes.

SlowMist issued an emergency alert labeled SM-2026-352284, saying it has detected an active cross-registry supply-chain campaign aimed at Web3 and AI builders. The firm said attackers published more than 34 malicious packages and 384 related versions across npm, PyPI and Crates.io to steal crypto wallets and developer credentials. SlowMist advised teams to remove the packages, isolate affected machines and follow a three-step remediation plan including AI config checks, credential rotation and a full rebuild.

A wallet analysts link to BitMEX co-founder Arthur Hayes sold 115,453 HYPE at an average of $54.81 and later repurchased 85,714 HYPE at $62.69 per token. The transactions followed a May 23 deposit to Bybit and came as HYPE set a $64.24 all-time high on May 24, 2026. Hayes has reiterated a $150 target for August 2026, while the attribution of the wallet remains unconfirmed by him.

RAIL, Railgun’s native token, climbed above $4.51 to mark a new 2026 high before pulling back to $4.05 amid higher volatility. Trading volume reached $7.5M—about 10 times typical levels—and the token is up more than 128% year to date. The move coincided with renewed attention on crypto privacy and expectations that wallet integrations could broaden Railgun usage.

Centrifuge (CFG) rose more than 11% over the past 24 hours even as the SEC delayed approvals for tokenized stock trading. Daily trading volume fell 36% to about $25 million, while on-chain metrics showed holder counts rising faster than asset and stablecoin value growth. Technical levels highlighted $0.30 as a key weekly close area, with $0.35 in focus if bulls regain the $0.30-$0.32 range.

StablR's USD stablecoin USDR traded around $0.63, about 37% below its peg, while EURR was roughly 22% under parity after the issuer confirmed an exploit. The incident involved unauthorized minting of 8.35 million USDR and 4.5 million EURR, with the attacker reportedly netting 1,115 ETH as liquidity on DEX pools was drained.

Hyperliquid's HYPE climbed 49% over the past week and reached a record $64.20 after gaining 15% in the last 24 hours. New U.S. spot HYPE ETFs launched on May 12 and May 14 and drew over $53 million in their first week, alongside reported on-chain and exchange-withdrawal signals of accumulation.

Uniswap (UNI) was priced at $3.44 at press time, down 7.50% in 24 hours, while trading volume jumped over 61% to $239.90 million. The token is testing an ascending trendline support held since April 12, 2026, and a break could open the way toward $3.00, though a rebound would challenge that view. Derivatives metrics turned more negative and spot flows showed $302K moved to exchanges over 24 hours, even as the top 100 wallets increased holdings by 3.41%.