Preface

This report summarizes several significant events in the blockchain and cryptocurrency space during March 2025, showcasing both the market’s vibrancy and emerging trends. Key developments include Aave’s expansion to the Sonic mainnet with its V3 lending market deployment, cybersecurity firm Mandiant’s confirmation of North Korean hackers’ involvement in the Bybit security incident, the rejection of Solana’s SIMD-0228 proposal affecting inflation adjustment plans, Gate.io Web3 Wallet’s major upgrade with AI-powered multi-chain hub aggregated trading, Raydium’s upcoming token launch platform LaunchLab, Pump.fun’s introduction of its native DEX PumpSwap, Berachain’s official launch of its PoL system driving decentralized governance through liquidity, and Hyperliquid’s manipulation attack with Hyper Foundation covering user losses. These developments demonstrate the industry’s innovative spirit while signaling deeper technical advancement and community engagement, driving continued growth and maturation in the sector.

Abstract

• Aave expands to Sonic mainnet, deploying its V3 lending market
• Safe{Wallet} confirms North Korean hacker group TraderTraitor’s involvement in the Bybit security incident
• Solana’s SIMD-0228 proposal fails to pass, affecting inflation adjustment plans
• Gate.io Web3 Wallet receives major upgrade with AI-powered multi-chain hub aggregated trading
• Raydium announces upcoming token launch platform LaunchLab
• Pump.fun introduces its native DEX PumpSwap
• Berachain officially launches PoL system, driving decentralized governance through liquidity
• Hyperliquid suffers a manipulation attack, with Hyper Foundation covering user losses

Timeline

Figure 1: Crypto Events Timeline

Key Developments and Updates

3/4 Aave Expands to Sonic Mainnet, Deploying Its V3 Lending Market

The Aave protocol has completed its expansion by officially deploying a decentralized lending market on the high-performance Sonic blockchain. This cross-chain deployment was approved through an Aave DAO governance proposal (AIP-365) and was led by the Aave Chan Initiative, one of Aave’s core contributing organizations. The expansion was backed by liquidity commitments, including $15 million in funding from the Sonic Foundation, up to 50 million native Sonic (S) tokens, and an additional $800,000 in stablecoins and migration incentives provided by Aave.

Aave’s multi-chain strategy positions it to attract Sonic’s existing DeFi user base while leveraging Sonic’s fee-sharing mechanism to enhance returns for liquidity providers (LPs), driving Sonic’s total value locked (TVL) toward the $1 billion mark. Moreover, Aave and Sonic’s joint incentive program may entice major protocols like Uniswap to migrate, potentially reshaping the Layer 1 ecosystem landscape. However, Aave must differentiate its interest rate models to compete for existing users while remaining vigilant about the security risks associated with cross-chain asset bridges and the inflationary pressure of incentivizing SONIC tokens. If ecosystem growth fails to meet expectations, short-term liquidity expansion could lead to long-term value dilution risks.[1]

3/7 Safe{Wallet} Investigates Bybit Security Incident, Confirms Link to North Korean Hacker Group TraderTraitor

The multi-signature wallet provider Safe{Wallet} has disclosed that it conducted a forensic investigation in collaboration with Mandiant, a cybersecurity firm under Google Cloud, to analyze the security incident on February 21. The investigation revealed that the incident was a highly sophisticated, state-sponsored attack. It confirmed that the FBI has attributed the attack to the TraderTraitor group, which Mandiant tracks as UNC4899 — a group known for orchestrating multiple cryptocurrency thefts in the past.

The attack involved compromising the laptop of a Safe{Wallet} developer (Developer1) and hijacking AWS session tokens to bypass multi-factor authentication (MFA) controls. This developer was one of the few individuals with high-level access privileges. Using the compromised workstation, the attackers attempted to access Safe{Wallet} servers. The investigation is ongoing to analyze further the attackers’ specific tactics and paths of activity.

In response, the Safe{Wallet} team has implemented extensive security enhancements to strengthen infrastructure security, surpassing pre-incident protection levels. At the same time, Safe’s smart contracts were not affected by the incident, ensuring the safety of user funds. Additionally, BlockSec has introduced a dynamic security protection solution for Safe{Wallet}, providing real-time transaction monitoring, risk analysis, and automated security responses to enhance wallet security further and mitigate the risk of similar attacks.[2][3]

3/14 Solana Proposal SIMD-0228 Fails to Pass, Inflation Adjustment Plan Stalled

The Solana community’s improvement proposal, SIMD-0228, aimed to adjust the issuance rate of SOL tokens to more dynamically respond to market conditions and potentially reduce SOL inflation by up to 80%. The proposal was authored by Tushar Jain and Vishal Kankani from Multicoin Capital and was supported by Max Resnick, Chief Economist at Anza. The core mechanism proposed dynamically adjusts token issuance based on the SOL staking rate: decreasing issuance when the staking rate exceeds 50% to prevent over-staking and increasing issuance when the rate falls below 50% to boost yields and encourage staking. The inflation rate could be reduced to 0%, with a maximum rate aligned with Solana’s current issuance curve. As of now, SOL’s inflation rate stands at 3.94%.

However, the proposal ultimately failed to pass due to insufficient support. The combined approval and rejection votes amounted to only 61.39%, falling short of the required 66.67% threshold. Of the total votes, 43.59% were in favor, 27.40% opposed, and 3.27% abstained, while 25.72% of validators did not participate in the vote, contributing to the proposal’s failure.

Although this proposal was not approved, it highlights the Solana community’s ongoing focus on managing inflation rates. New proposals will likely emerge in the future to optimize SOL’s tokenomics model and seek broader consensus within the decentralized governance framework.[4]

3/18 Gate.io Web3 Wallet Launches Major Upgrade, Becomes AI-Powered Multi-Chain Trading Hub

The Gate.io Web3 Wallet has been officially upgraded into a multi-chain AI trading hub, introducing the industry’s first cross-chain asset dashboard that allows one-click management of over 100 public chain assets, including Ethereum, Solana, and BSC. The wallet integrates a built-in DEX aggregator that seamlessly connects with top protocols such as Uniswap and PancakeSwap. AI algorithms automatically split trading routes, reducing slippage by 40%. It incorporates a lightning-fast trading engine that enables a rapid 0.5-second response to on-chain market fluctuations.

Gate.io’s exclusive AI Golden Dog Radar is a standout feature, which monitors social media and on-chain data 24/7, boasting a 75% historical accuracy rate in identifying early opportunities in the meme coin market. As multi-chain ecosystems expand and AI trading technologies mature, market demand for decentralized trading tools is rising, driving the trend toward intelligent trading and cross-chain liquidity aggregation. AI trading algorithms can effectively optimize trading routes, lower costs, and improve execution efficiency, while the high volatility of the meme coin market makes social sentiment analysis a critical strategy. This strategic upgrade by Gate.io enhances user experience and is expected to attract more DeFi traders and short-term investors, further boosting its market share.[5]

3/19 Raydium to Launch Token Issuance Platform LaunchLab

Raydium, a decentralized exchange (DEX) and automated market maker (AMM) on the Solana blockchain, has announced the launch of LaunchLab. This token issuance platform closely mirrors the design of the popular pump.fun. LaunchLab offers linear, exponential, and logarithmic bonding curves to accommodate market demand and pricing flexibility. Additionally, the platform allows third-party user interfaces to set fees, enhancing overall flexibility independently. LaunchLab will also support multiple quote tokens beyond SOL and integrate Raydium’s liquidity provider (LP) locking feature, ensuring long-term and stable fee revenue for issuers. [6]

Raydium’s decision to launch LaunchLab is seen as a direct response to pump.fun’s plan to develop its own AMM, highlighting the intense competition within the Solana DeFi ecosystem, particularly in the meme coin issuance space. It is reported that Raydium had initially put the LaunchLab project on hold due to reluctance to compete directly with a key partner. However, after pump.fun’s plans were revealed, Raydium quickly resumed development of LaunchLab. Pump.fun has historically been an important revenue source for Raydium, and the launch of LaunchLab is viewed as a strategic move to mitigate potential revenue declines and maintain competitiveness in the meme coin issuance market. Nevertheless, pump.fun has already built a large user base and captured a significant market share, which means LaunchLab’s success will depend on its ability to outperform pump.fun regarding user experience, fee structures, and its capacity to attract high-quality projects.

3/21 Pump.fun Launches Native DEX PumpSwap

Pump.fun, the popular Solana-based meme coin platform, has announced the launch of its native decentralized exchange (DEX), PumpSwap, aimed at providing users with a smoother and more efficient trading experience. Effective immediately, all tokens issued through the platform’s bonding curve will automatically migrate to PumpSwap, offering users instant migration and zero migration fees (previously 6 SOL). Built on Solana, PumpSwap leverages a Constant Product Automated Market Maker (CPAMM) model, similar to Raydium V4 and Uniswap V2. Users can create liquidity pools for free or add liquidity to existing pools, enabling seamless trading of all listed tokens. Currently, PumpSwap charges a 0.25% transaction fee, with 0.20% allocated to liquidity providers and 0.05% to the protocol. This fee structure is expected to evolve with the introduction of a creator revenue-sharing mechanism, designed to incentivize quality projects further.[7]

The launch of PumpSwap represents a significant upgrade to the Pump.fun ecosystem, enhancing trading efficiency, lowering entry barriers, and fostering a fairer, more transparent decentralized trading environment. However, despite undergoing multiple security audits, users should remain mindful of potential smart contract risks and conduct thorough due diligence before trading.

3/25 Berachain Officially Launches PoL System to Drive Decentralized Governance Through Liquidity

On March 24, Berachain, an EVM-compatible Layer 1 blockchain, officially launched its Proof-of-Liquidity (PoL) system, marking the beginning of the first phase of on-chain governance. The system aims to promote broader decentralized governance by distributing governance tokens (BGT) through DeFi liquidity pools while enhancing ecosystem liquidity. Initial incentives will focus on specific DEX liquidity pools, with plans to extend rewards to more pools in the future.

Berachain’s PoL model allows users to inject assets into liquidity pools without locking them up in exchange for BGT governance tokens. Holders can then delegate BGT to influence validator weights, effectively integrating governance and liquidity operations. This design improves capital efficiency, lowers the barriers to participation, and is expected to attract significant DeFi liquidity into the ecosystem. By increasing network activity and security, Berachain’s PoL model introduces a more market-driven paradigm for public blockchain governance.[8]

3/26 Hyperliquid Suffers Manipulation Attack, Hyper Foundation to Cover User Losses

On March 26, a trader on Hyperliquid established a $6 million short position in JELLYJELLY, followed by a large-scale purchase that artificially drove up the price, triggering forced liquidations and transferring the position’s risk to the Hyperliquid Liquidity Pool (HLP). As the HLP pool faced potential losses, Hyperliquid ultimately decided to delist the JELLYJELLY contract and pledged to compensate affected users (excluding the malicious address). Despite the platform reporting a $700,000 USDC profit in the 24 hours before the incident, user funds saw a net outflow of $140 million USDC after the event, indicating a significant loss of trust.[9]

According to an official announcement from Hyperliquid, the delisting of JELLY tokens was approved by community validators through a governance vote after allegations of project manipulation and price manipulation surfaced. Most community members supported handling high-risk assets through a decentralized decision-making process. Hyperliquid also stated that the Hyper Foundation will cover user losses incurred during this incident, and the relevant compensation mechanism has already been initiated. This action aims to protect user interests while reaffirming the platform’s commitment to ecosystem health and market transparency. The incident again sparked discussions about the review mechanisms for early-stage project listings. Hyperliquid has pledged further to refine its governance processes and risk control frameworks to prevent similar issues from occurring in the future.[10]

Summary

March 2025 witnessed a surge of significant developments in the blockchain and cryptocurrency sectors, demonstrating the market’s vitality and industry trends. Key projects including Gate.io Wallet, Berachain, Aave, Raydium, and Pump.fun made substantial progress through performance upgrades, on-chain governance improvements, protocol expansions, and new platform launches, highlighting product innovation and community growth while injecting fresh momentum into the industry. Meanwhile, the manipulation attack on Hyperliquid, which triggered forced liquidations, served as a wake-up call for DeFi projects to strengthen their risk management and governance structures.


References:

1. X,https://x.com/aave/status/1896640279224168537
2. X,https://x.com/safe/status/1897663514975649938
3. BlockSec,https://www.blocksec.com/safe-wallet-monitor
4. SIMD Vote,https://simd-votes.stakingfacilities.com
5. X,https://x.com/GateWeb3Wallet/status/1901638418003591679
6. Blockworks,https://blockworks.co/news/raydium-launching-pumpfun-version
7. X,https://x.com/pumpdotfun/status/1902762320939319439
8. X,https://x.com/berachain/status/1903227859675623591
9. Foresight,https://foresightnews.pro/article/detail/81076
10. X,https://x.com/HyperliquidX/status/1904923137684496784

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