protocol

Castle Labs released a report stating that since the beginning of the year, crypto protocols have generated approximately $7.42 billion in revenue, but most token prices have failed to reflect the fundamentals of the protocols. The report analyzes six protocols, including Aave, Hyperliquid, PumpFun, and Uniswap, finding that they collectively generated about $726 million in revenue in the first half of 2026. However, after accounting for token issuance, unlocks, and incentives, the net value inflow for token holders turned negative for some projects.The report points out that Hyperliquid has burned over 47 million HYPE tokens, and PUMP has completed over $315 million in buybacks, yet the token is still down about 60% from its issuance price. Protocol revenue does not necessarily translate into token value, and investors should also pay attention to factors such as value return mechanisms, token unlock pressure, and equity structure.

The stablecoin infrastructure company Brale has launched the ION Protocol, an interoperability system that allows participants to transfer stablecoins across blockchains by destroying tokens on one chain and minting tokens on another chain. The ION Protocol is now live on the testnet.Currently, there are over 350 types of stablecoins in the market, with a total market capitalization exceeding $300 billion, and market growth is accompanied by fragmented liquidity. Brale stated that, unlike traditional blockchain bridges that rely on pre-funded liquidity pools, ION aims to reduce capital requirements and address liquidity bottlenecks in the scaling of custom stablecoins.

According to ChianCatcher news, the stablecoin credit protocol Ebisu Finance announced today that it has decided to gradually shut down the project. Users need to quickly close remaining Troves, withdraw Stability Pool deposits, and ebUSD DEX liquidity. The minting of ebUSD has been suspended, and the front end will be deprecated in 3 months on October 30.This protocol is a fork of Liquity V2, supporting new collateral types and adjustable risk parameters. It has been running for over a year and has passed two audits. Ebisu aims to provide fixed-rate, open-term credit through ebUSD, with collateral including blue-chip yield-bearing assets such as LRTs, but the team has failed to expand ebUSD liquidity to support meaningful lending volumes.The project explored multiple solutions, including liquidity optimization, multi-chain expansion, structured products, and acquisition opportunities, but none addressed the core bottleneck of the CDP protocol: stablecoin liquidity and sustainable demand. The team stated that there are no plans for the launch or airdrop of EBISU tokens and thanked supporters, inviting other teams to contact them for permission to use their tech stack.

According to VentureBeat, the Model Context Protocol (MCP) has received its largest update since its launch in November 2024, managed by the Agentic AI Foundation (AAIF) under the Linux Foundation. This update completes the transition to a fully stateless architecture, allowing MCP servers to be deployed behind standard load balancers without relying on "sticky routing" or shared session state, thereby simplifying large-scale cloud-native and Kubernetes deployments.In terms of security, the new version of MCP enforces validation of the issuer (iss) parameter for OAuth and OpenID Connect to prevent mix-up attacks and introduces enterprise-hosted authorization extensions to support unified identity governance for enterprises. The protocol also establishes a formal deprecation policy, ensuring that features are announced for deprecation at least 12 months before their earliest removal. MCP Apps and MCP Tasks have also been upgraded to official extensions, supporting servers in providing interactive interfaces to AI clients and executing interruptible, resumable long-running asynchronous tasks through persistent task handles. According to MCP co-creator David Soria Parra, the related SDK's weekly download volume has reached approximately 250 million, doubling in the past six months.

Uniswap founder Hayden Adams posted on the X platform in response to the controversy over the v4 fee switch, clarifying that "the reduction of LP fees" is a misunderstanding; the protocol fees are additive rather than deductive, and LPs still earn 30 basis points per transaction.Regarding the claim that "the protocol takes 25% of LP profits," he stated that on a 30 basis point pool, the protocol fee is 5 basis points, accounting for about 14% of the total transaction fees, and LPs have not lost any of their earnings. Hayden Adams also pointed out that centralized exchanges charge 100 to 200 basis points per transaction, making Uniswap's 5 basis point fee at the 30 basis point level 20 to 40 times cheaper. He also criticized some forked projects that charge 100% transaction fees but use uneven inflation set by token voting to "compensate" LPs.

According to official news, the decentralized exchange aggregator 1inch has officially launched the shared liquidity protocol Aqua for all users. Aqua allows users to support multiple liquidity positions simultaneously with just a token balance, without the need to deposit assets into a liquidity pool. The assets remain in the user's wallet, and only when a transaction is actually executed does the protocol call the corresponding tokens from the wallet through a single atomic transaction to complete the settlement, returning the received tokens and fees to the wallet.1inch stated that this new model, known as "shared liquidity," is expected to address current issues in DeFi liquidity, such as long-term idle liquidity, low capital utilization, and asset custody risks. The protocol was opened to developers last November and is now officially launched for all users, supporting 13 EVM-compatible chains including Ethereum, Arbitrum, Base, Robinhood Chain, and BNB Chain.1inch indicated that there are several structural issues with current DeFi liquidity. Although many protocols have a high total value locked (TVL), a large amount of liquidity remains in inactive price ranges for extended periods, failing to earn trading fee revenue while also bearing market volatility risks. Additionally, liquidity providers (LPs) typically need to split limited funds across different protocols, trading pairs, and price ranges, leading to decreased capital utilization. Furthermore, traditional models require users to deposit assets into liquidity pools, which not only loses other uses of the assets but also means relinquishing asset custody rights and facing risks such as JIT (Just-In-Time) liquidity bots seizing fees. Aqua enhances capital efficiency by registering wallet balances as a shared liquidity source, allowing the same asset to support multiple liquidity positions without transferring asset ownership; when the wallet balance is insufficient to cover a transaction, the protocol will not execute that transaction, thus keeping the user's actual risk always limited by the wallet holdings.

Visa and the on-chain data analysis platform Artemis previously jointly released the report "Agentic Payments from the Ground Up," which quantifies the trends of AI agent payments based on real-time on-chain data. The report points out that intelligent commerce should be divided into macro transactions (AI agents completing bookings, subscriptions, etc., adapting to existing card systems) and micro payments (high-frequency small payments between machines, with individual transactions far below $1, which traditional payment structures struggle to support).The report focuses on two "machine-native payment" protocols: x402 (developed by Coinbase, Cloudflare, etc., launching in May 2025) with an adjusted transaction volume of approximately $15 million and 109.6 million transactions as of April 21, 2026, with 422,000 buyers and about 5,300 sellers, primarily concentrated on Base, Solana, and Polygon, settled in USDC; MPP (developed by Stripe and Tempo, with Visa's participation, launching in mid-March 2026) had a transaction volume of approximately $25,000 and 115,000 transactions within 33 days of launch, supporting both on-chain crypto payments and fiat settlements.The report believes that the leap in AI capabilities (with the release of Claude 4.5 and GPT Codex 5.2 in mid-2025) has created a demand for programmatic payments, combined with the decreasing costs of blockchain settlements, making micro payments in the range of 1 cent to 1 dollar economically viable for the first time. Currently, the boundaries between crypto-native protocols and card payment camps are gradually blurring, but agent payments still face trust challenges such as erroneous purchases, adversarial attacks, and liability attribution.

According to monitoring by PeckShield, the attacker’s marked address has returned 331.8 ETH, approximately 623,900 USD, to the Across Protocol Hub Pool Owner multi-signature address.

Solana Optimistic Network (SOON) announced that the security incident discovered on July 12 has been investigated and resolved. The incident did not involve vulnerabilities in the SOON protocol, sequencer, or user-facing smart contracts, and no user funds were lost. SOON stated that this incident originated from security issues in the off-chain operational environment.According to an investigation by the third-party security company BlockSec, external attackers gained unauthorized access through misconfigured services and further entered part of the internal environment due to insufficient access controls. The impact of the incident was limited to certain operational infrastructure and related processes, and did not involve on-chain user assets, user smart contracts, or SOON network security. After the incident, SOON suspended the sequencer and some services, and initiated a comprehensive security review. During this period, functions such as NFT minting, token claiming, and on-chain withdrawals were temporarily shut down. Currently, SOON has restored NFT minting and token claiming functions, and has resumed mainnet RPC services and block production. The network is now operating normally.

Storj Labs voluntarily filed for Chapter 11 reorganization in the Northern District of West Virginia on July 26 to address historical debt issues while maintaining ongoing operations. Storj stated that services would not be affected during the reorganization, and customer obligations would continue to be fulfilled. The parent company Inveniam supports this reorganization, believing it is the right path to achieve sustainable development.Kaloyan Raev, the Director of Software Engineering at Storj, stated that the company's fundamentals are strong, and the constraints on growth are due to early legacy debts. After the reorganization, a "clean foundation" will be established, and there are plans for management, the token community, and investors to participate in the post-reorganization ownership distribution. Storj has previously focused its business on the core distributed storage field and is disposing of prior acquisitions and non-core businesses. This reorganization follows a significant governance adjustment faced by the company in the decentralized storage sector after Inveniam's acquisition of Storj in 2024.

According to a post from Odos's official X account, the operating company of the DeFi liquidity aggregation protocol Odos announced the closure of its business. The specific timeline is as follows: Starting from July 23, new account registrations, new wallet creations, and new limit order functions have been disabled, while existing users can still exchange and close positions normally; from July 27 to 30, the application will switch to read-only mode, allowing users to view historical transaction records and balances; on July 30, all Odos services will be permanently shut down.Odos is a non-custodial protocol, and user assets remain on-chain. Users who created wallets by logging in with social accounts or email must complete asset transfers or private key exports before July 30. In addition, the ODOS token exists independently on-chain, and the company's closure does not affect its on-chain mechanism. Odos DAO will announce subsequent plans separately.

According to Onchain Lens monitoring, after the Drift Protocol was attacked for $285 million on Solana in April, the attacker began to transfer funds through Tornado Cash after leaving the funds idle for 3 months.The attacker is quickly depositing ETH into the Tornado Cash Router in batches of 100 ETH, with multiple transfers occurring every minute.

According to Blockaid's monitoring, the Arbitrum ecosystem protocol AFX was attacked at 5:30 AM Beijing time, targeting a cross-chain bridge operated by the protocol. So far, approximately 24.15 million USDC has been stolen. Blockaid stated that it is working with the Arbitrum team to respond to the incident, communicate with the affected protocols, and assist in freezing the stolen funds.In addition, Offchain Labs co-founder Steven Goldfeder responded on the X platform, stating that the Arbitrum team has noted the reports of the cross-chain bridge attack on Arbitrum and is investigating. Goldfeder confirmed that the related transactions originated from a third-party protocol, and the Arbitrum native bridge was not attacked or exploited. The team will coordinate with the third-party team and provide more details.

According to Bitcoin Magazine, Jack Dorsey, the founder of Block (formerly Square), announced the launch of the open-source decentralized group chat application Buzz, aimed at challenging team collaboration platforms like Slack. Buzz is built on the decentralized social protocol Nostr and is designed for teams composed of humans and AI agents, supporting chat, project management, coding, and PR collaboration.Block stated that the application is decentralized and open-source, allowing users to have full control over their data, and teams can collaborate with members and dedicated agents in a shared space.

RobinHub posted on platform X that data shows that since the mainnet launch of Robinhood three weeks ago, the number of transactions has reached 119.75 million, the number of blocks has reached 15.25 million, the number of unique sending addresses has reached 1.66 million, the protocol's TVL has reached 262 million USD, the number of deployed contracts has reached 974,300, the number of ERC-20 tokens has reached 396,000, the number of NFT collections has reached 9,090, and DEX transactions have reached 46.66 million.

On-chain detective ZachXBT stated that the cross-chain protocol TeleSwap suffered a vulnerability attack of approximately $735,000 on July 15, and after the incident, its Bitcoin hot wallet immediately stopped processing transactions.As of now, five days have passed since the incident, and the project team has not made any public disclosures regarding this event. ZachXBT noted that about two hours ago, the attacker transferred the stolen funds to Tornado Cash.

According to Decrypt, the cross-chain bridge protocol Allbridge has suspended its Core protocol due to a flash loan attack, with the attacker having stolen approximately $1.65 million in assets from the Solana stablecoin liquidity pool.According to analysis by blockchain security firms PeckShield and CertiK, the attacker borrowed $1.12 million in flash loan funds through the Solana lending protocol Kamino, and then manipulated the price mechanism within the Allbridge pool through multiple stablecoin exchange operations to exchange assets at a low price, subsequently transferring the funds across chains to an Ethereum address.During the attack, the attacker exchanged several thousand dollars in USDT to obtain approximately $2.24 million in USDC, and then bridged the funds to Ethereum for further dispersal. It is currently unclear whether some of the funds can still be recovered.Allbridge stated that the team has suspended the Core protocol for security reasons and has requested affected liquidity providers to withdraw their funds immediately. Due to the attack causing an imbalance in the liquidity pool, some traders profited from arbitrage opportunities. Allbridge has called on relevant users to return their profits, stating that the funds will be used to compensate affected LPs.The team indicated that there is no further risk to user funds at this time and will release a detailed incident analysis report after completing the investigation, while also planning to relaunch the Core protocol after removing the liquidity pool. This is the second time Allbridge has encountered a similar flash loan attack. In April 2023, the protocol's BNB Chain liquidity pool suffered a loss of approximately $573,000 due to a similar vulnerability, after which the project team stated that they had recovered most of the funds and adjusted the liquidity calculation mechanism.

According to tracking data from the Web3 asset data platform RootData X, in the past 7 days, the Robinhood Chain native CDP protocol Arrow Finance has been the project with the most new followers among X (Twitter) Top personalities. New influential figures following this project include well-known analyst 0xWizard (@0xcryptowizard), SpiderCrypto (@SpiderCrypto0x), and well-known KOL 0xSun (@0xSunNFT).

Uniswap founder Hayden posted on the X platform that Uniswap has just submitted two governance proposals for final on-chain voting, including enabling v2 and v3 protocol fees on the Robinhood Chain, as well as enabling v4 protocol fees on Ethereum, Base, Arbitrum, Robinhood, BNB, Polygon, and Optimism. The remaining third proposal related to v4 chain is about to be submitted.Both proposals will direct all new protocol fees into the existing UNI burn mechanism. Based on the current trading volume, especially the trading volume related to Robinhood, the impact on UNI burn is expected to be significant.