July was another steady month for DeFi, with ETH ETFs driving the most anticipation.

Lending markets TVL stayed relatively stable over the month.

Starting with the key leverage developments of the month:

• AIP passed for the development of Aave 2030, including Aave V4 and the new visual identity. Aave also introduced AAVEnomics update proposal and Lido-specific markets tab.

• Aave DAO published a temperature check proposal to invite a statement regarding Maker(Spark)/Aave DAO profitshare agreement

• Proposed changes to SparkLend for Upcoming Spell. Later, SparkLend also increased capacity of weETH

• Liquity v2 published under a BUSL

• Renzo launched flagship LRT $pzETH on Symbiotic

• Pendle faced >$3bn drawdown as restaking airdrops faded at the start of the month

• LlamaSwap introduced earn and borrow tabs

• Balancer v3 codebase published

• Convex Finance's expanded derivative portfolio adding Napier - cvxNPR

• crvUSD upward depeg incident report by LlamaRisk. The team also issued a risk report on ETH+, an ETH index token backed by prominent LRTs.

• ZeroLend launched Isolated Markets on Linea

• Usual public mainnet launched

• Karak introduced restaking functionality for Arbitrum

• 0x introduced its next-gen pricing engine

• Maker aims at $100Bn stablecoin supply

Security Incidents

• Compound potential governance attack for ~$25M in COMP

• WazirX exploited for $230M

• Lifi protocol exploited for $11M; breakdown

• Coinstats exploited for $2.2M

Miscellaneous

• Worldcoin partnered with Alchemy on infrastructure to rollup hosting services.Worldcoin Foundation also launched World Chain developer preview.

• Sentient raised $85M seed

• MegaETH raised $20M seed

• ZkSync introduced Elastic chains - a network of natively interoperable zk rollups

• Consensys acquires Wallet Guard to enhance MetaMask security

• EIP-7732: Enshrined Proposer-Builder Separation

• ERC-5564 and ERC-6538 have been finalized, marking a major milestone for EVM stealth address standards

• DefiLlama published narratives tracker

Regulatory

• Ethereum ETFs trading kicks off

• Trump courts Bitcoin voters with pledge to create ‘national stockpile’

• Circle becomes first global stablecoin issuer to comply with MiCA

• OHM and Klima deemed commodities in case involving crypto 'Ponzi'-like scheme

• BitMEX pleads guilty to violating the Bank Secrecy Act in AML case

• Germany government liquidated ~2.3Bn Bitcoin - A Coinbase review

• Paxos prevails in SEC investigation of BUSD stablecoin

• Binance receives permission to invest some customer funds into US treasuries