Latest DeFi News

Latest DeFi news, web3 and AI, find out what’s dominating this market trend. This article is updated once a month.

Latest DeFi News – if you’ve been keeping up to date with DeFi news, here’s a summary of what we’ve been up to.

Latest DeFi News: Ten Days That Are Shaking Up the Decentralized Ecosystem

In just ten days, DeFi has withstood a historic crash, decentralized derivatives exchanges (DEXs) have seen explosive growth, Cardano’s DeFi ecosystem held strong, and U.S. regulators are discussing an “innovation exemption.” Here’s a comprehensive overview of the key events.

1) DeFi Passes a Major Stress Test During the October 10 Crash

On October 10, 2025, the crypto markets experienced a shockwave: nearly $20 billion in leveraged positions were liquidated in a matter of hours. The Defiant During this turbulent episode, DeFi protocols were put to the test—and, overall, they held up. Platforms like Aave, Morpho, and Hyperliquid reported little to no major disruptions, despite the collapse of several centralized positions. The Defiant Why It’s Critical: This event demonstrates that DeFi is no longer just an “experimental zone” prone to breakdowns: it is entering a phase of maturity. Users and investors can now observe not only promises of yield but also structural resilience. What to Watch: Liquidity levels, liquidation timelines, and the ability of smart contracts to absorb large movements without breaking.

2) Record Activity on Perpetual Futures DEXs Despite Volatility

While the market reeled from one of its worst days in liquidations, decentralized derivatives exchanges recorded historic volumes. Between October 6 and 12, weekly DEX perpetuals volume reached $264.5 billion, according to DefiLlama data. Open interest rebounded quickly after a sharp drop. Implications:

• The rapid return of leveraged traders to DeFi shows that risk appetite remains strong, even after massive losses.
• A portion of the activity is driven by “airdrop farming” on platforms without visible tokens, indicating maturing DeFi strategies. Associated Risks: The “tokenless DEX + airdrop farming” model could create a specific bubble—worth monitoring.

3) Cardano’s DeFi Protocol Weathers the Crisis with Stability

Despite the storm of October 10, Cardano’s DeFi ecosystem displayed remarkable stability. An article notes that ADA and CNT liquidity pool pairs continued to function without significant interruptions, while other chains were shaken. Why It’s Interesting: Cardano, often criticized for its slow progress in DeFi, demonstrates reliability here that could attract capital seeking “safe zones” in DeFi. What to Watch: Cardano’s total value locked (TVL), the number of active protocols, and the potential arrival of “blue-chip” DeFi projects on the chain.

4) Transparency and Strategic Questions: DeFi Faces Manipulation Risks

An in-depth analysis suggests that the October 10 crash was not purely a market phenomenon but may have involved elements of coordinated manipulation, particularly through vulnerable oracles. This serves as a warning: even as DeFi matures, it remains exposed to technical and strategic risks. Key Takeaway: Protocol robustness alone is not enough—the broader ecosystem of “infrastructure + oracles + governance” must also be resilient. What to Watch: Protocol audits, oracle-related incidents, and the quality of DAO governance.

5) DeFi TVL: How the Numbers Evolve Under Pressure

As the broader market navigates a turbulent period, it’s important to assess DeFi’s structural health: according to various sources, global TVL remains relatively stable, though growth is more moderate. For example, despite the general decline in asset prices, major platforms maintained operations without significant failures (see point 1). Why It’s a Key Indicator: A TVL that doesn’t collapse during a liquidation shock signals confidence. What to Watch:

• TVL distribution by blockchain and protocol,
• Net outflows vs. inflows,
• The ratio of “product utilization” to “promised yield.”

6) Regulation & “Innovation Exemption”: A Need to Rethink the DeFi Framework

A summary article notes that U.S. authorities acknowledge a lag in crypto innovation and are considering measures like an “innovation exemption” to support blockchain projects. While broader than DeFi alone, this regulatory opening could benefit DeFi protocols operating in gray zones or awaiting clarification. Potential Impact:

• Greater clarity could enable institutions to enter with fewer barriers.
• DeFi protocols could gain more stable legal status, reducing “regulatory risk.” What to Watch: Public consultations, DeFi-specific legislative proposals, and initial approvals or rejections.

7) Usage and Product Innovation: Emergence of a Hybrid DeFi-CeFi Model

Renewed interest has been observed in hybrid models. This includes centralized platforms integrating DeFi elements (liquid staking, automated pools) and DeFi protocols adopting CeFi features (fiat borrowing, real-world asset tokenization). While no major specific cases were announced in these ten days, trends are converging toward this evolution. (Synthesis based on sector observations) Why It’s Notable: The shift from “pure” DeFi to “institutional” or “hybrid” DeFi could significantly expand the market’s potential. What to Watch: Announcements of partnerships between fintechs/traditional finance and DeFi protocols, as well as tokenization of conventional assets via DeFi.

Conclusion: DeFi Matures—Resilience, Record Volumes, and Regulatory Awakening

These past ten days have highlighted DeFi’s rapid evolution:

• Resilience in the face of a massive liquidity crisis,
• Record-breaking trading and decentralized derivatives activity,
• Emerging chains like Cardano proving their maturity,
• A regulatory framework beginning to align with the pace of innovation.

For DeFi observers and investors, the signals are clear: the ecosystem is strengthening. However, challenges remain—manipulation, regulation, and security are still front and center. We are entering a phase where DeFi is no longer just about “growth.” This new phase is also about “proving” its ability to withstand shocks, paving the way for significant capital inflows and coexistence with institutions.