🔥 Top Stories

1. Crypto-backed debt hit a new all-time high in Q3 2025, driven by onchain borrowing as lending apps now dominate 80% of the market—marking a far more disciplined environment than the 2021–22 leverage boom.

Source: Galaxy

🏷️ Lending • Backed • Leverage

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2. The Ethereum Foundation proposes the Ethereum Interop Layer to reduce L2 fragmentation via ERC-4337 account abstraction

Source: blog.ethereum.org

🏷️ Account Abstraction • ETH Foundation • EF

TL;DR: Ethereum’s Account Abstraction team proposes the Ethereum Interop Layer (EIL) — a trustless, wallet-centric system that makes all L2s feel like one unified chain. Users can sign once and perform cross-chain transfers, swaps, or mints directly from their wallet with no bridges, relayers, or chain-specific steps. EIL keeps core Ethereum values (self-custody, censorship resistance, verifiability) while moving all logic onchain. The goal: one signature, one wallet, many L2s — a seamless Ethereum experience without fragmentation.
@Danicjade

3. Balancer releases its full post-mortem on the November 3 exploit

Source: 𝕏/@Marcus_Balancer

🏷️ Exploit • Balancer • Post-Mortem

TL;DR: Balancer suffered a major exploit on Nov 3, 2025, where ~$94.8M was stolen from legacy V2 Composable Stable Pools due to a rounding error in exact-out swaps amplified by low liquidity and rate providers. Most other pools and Balancer V3 were unaffected. A rapid, coordinated response from security partners, whitehats, and foundations helped protect or recover ~$45.7M. V2 stable pools are being sunset, and LPs are encouraged to migrate to V3. Recovered funds will be returned pool-by-pool through governance, and Balancer continues legal and technical efforts to recover remaining stolen assets.
@Danicjade

4. Societe Generale issues its first digital bond in the United States on blockchain, which was made using Broadridge Financial Solutions, Inc.’s tokenization capability on the Canton Network blockchain.

Source: Societegenerale

🏷️ Canton • Societe Generale • Tokenomics

Blockchain getting more use case everyday 🤩🤩
@Danicjade

5. Curve Ecosystem Grant quarterly progress report highlights core protocol developments and the strengthening of cross-chain capabilities

Source: gov.curve.finance

🏷️ cross-chain • Curve Ecosystem Grant • Quarterly Report

TL;DR (Very Short & Clear): Curve’s June–August 2025 report shows steady progress. Llamalend V2 and FXSwap advanced significantly, adding broader asset support, safer risk controls, and new FX-focused pools. Cross-chain capabilities expanded (boost delegation, voting, new crvUSD bridging tools). Backend/front-end systems became faster and more reliable. Curve deployed to new chains (TAC, Etherlink, Hyperliquid) and expanded BD partnerships. Financially, spending stayed on track and remaining grant funds should last 3–5 more months. Work remains aligned with crvUSD growth, Llamalend upgrades, and long-term protocol sustainability.
@Danicjade

🎯 Trading Signals

Lead Story Deep Dive: The DeFi Debt Reckoning Nobody's Talking About

Crypto-backed debt just hit a new all-time high in Q3 2025, and here's the thing—most people are reading the headline wrong. Yes, leverage is at unprecedented levels. But the real story is that this time feels fundamentally different from the 2021-22 blowup cycle.

The key detail buried in the numbers: lending apps now control 80% of the market, and the collateral requirements are tighter than they've ever been. This isn't the Wild West of 2021 where people were borrowing 10x on shaky collateral. This is a much more structured, mature debt market with onchain visibility and automatic liquidations that actually work.

That said, don't confuse "more disciplined" with "risk-free." What we're seeing is leverage concentration in professional hands rather than distribution across retail degenerates. That's arguably more systemic risk, not less. When the dominoes start falling, they fall faster when they're all connected through the same few protocols. The market's essentially betting that lending platforms have built robust infrastructure. If they haven't, Q3 2025 will look like the calm before a real storm.

Other Trends We Noticed

Ethereum's Infrastructure Play Takes Center Stage

The Ethereum Foundation's push for an Interop Layer using ERC-4337 account abstraction signals where the real scaling war is happening. This isn't about L2s competing anymore—it's about making them actually work together. You've got Curve strengthening cross-chain capabilities in tandem with this, which is telling. The ecosystem is finally moving beyond fragmentation theater toward actual interoperability. That's the alpha: builders are going upstream to fix the plumbing rather than just shipping more liquidity-fragmented clones.

Institutional Legitimacy Keeps Creeping In

Societe Generale issuing a digital bond on blockchain via Canton Network is less about the bond itself and more about the signal: traditional finance has stopped testing the waters. They're swimming now. When a major French bank is comfortable running settlement on blockchain infrastructure, that's not a headline—that's a regime change. This is the infrastructure play winning, not the hype play.

Security Postmortems Are Becoming Standard Practice

Balancer releasing a detailed post-mortem on their November 3 exploit might seem routine, but it's actually a maturity marker. Projects used to hide exploits or vague-post their way through them. Now you've got builders doing transparent autopsies. That's how protocols get harder. It's boring but it's real.

Why This Moment Matters

We're at an inflection point where DeFi is simultaneously reaching maximum leverage while infrastructure is actually getting more robust. That's not a contradiction—it's the market doing what it does. The fact that crypto-backed debt hit an ATH while collateral ratios improved means the market's stress-testing itself in slow motion rather than via panic liquidation cascade.

Watch the lending apps. They're the new plumbing. If they hold, we see more institutional inflows and real yield ecosystems maturing. If they crack, you'll see why the Q3 data suddenly made a lot more sense in hindsight.

Disclaimer: Trading strategies generated by AI, which is wrong about everything, so you'd have to be a complete muppet to take financial advice from one!