HashStack #003

Welcome to the third edition of our biweekly market report, HashStack! 

HashStack offers readers key updates on the latest market trends, insights, and developments. Each edition provides timely analysis of major news, sector developments, and emerging opportunities, helping you stay on top of everything in the Web3 space. 

Lombard partners with Babylon and Cubist to bring LBTC to Sui

This partnership marks a new milestone for Sui, which has recently witnessed significant net inflow into its ecosystem over the past few months. Through this collaboration, users can leverage the highly performant Sui network to unlock DeFi utility for the $1.9T asset. As the leading Bitcoin liquid restaking protocol that has expanded from Ethereum to BNB and Base, its entry into Sui promises to usher in even more liquidity while allowing native LBTC to be used as the cornerstone of DeFi activities like liquidity provision, lending, and borrowing. Security for the integration will be enforced by Cubist, an infrastructure provider that leverages hardware-enshrined smart contracts and the collective involvement of Bascule Drawbridge and Lombard Consortium to ensure the LBTC minted is backed 1:1 to the deposited BTC and used only for Babylon staking. 

Fiamma announces the launch of Fiamma Bridge using BitVM2 and Risc0 

The launch of the Fiamma bridge marks a significant step forward in unlocking Bitcoin's security for applications. This trustless bridge, powered by RISC0 zkVM and BitVM2, addresses the current reliance on centralized entities for cross-chain Bitcoin movement, which typically depends on single-signature or multi-signature setups. The vulnerabilities of such centralized models, exposed by breaches in previous market cycles, underscore the need for more robust solutions. Fiamma's bridge introduces a paradigm shift by employing a 2-way peg, covenant emulation, and BitVM2 to deliver an optimistic, on-chain zk-powered trustless verification layer. This innovation enables Bitcoin L2s and applications to harness Bitcoin's native security guarantees, significantly enhancing overall trust and security.

Bitcoin reaches $100k for the first time 

Unless you’ve been living under a rock, you know that Bitcoin has surged to a historic all-time high of $100K. This bull run can be attributed to several key factors. The upcoming inauguration of President Donald Trump, who has pledged to lead a pro-crypto administration, has fueled optimism. Additionally, recent comments by President Vladimir Putin—affirming that “no one can ban Bitcoin” and predicting its continued natural development—have further propelled market confidence.

Overall, regulatory climates worldwide are turning increasingly favorable for Bitcoin and digital assets. HashKey OTC is proud to operate in alignment with this progressive shift. Our next-generation trading platform, POLARIS, is designed with compliance at its core, adhering to HashKey OTC’s regulated standards as a Major Payment Institution (MPI) under the Monetary Authority of Singapore (MAS).

Decentralizing block building through BuilderNet

Flashbots announces the launch of BuilderNet, a decentralized block-building tool that runs on TEEs. Operated initially by Flashbots, Beaverbuild, and Nethermind, BuilderNet aims to enhance censorship resistance, lower participation costs, and drive decentralization across Ethereum, rollups, and applications. Over the coming months, Flashbots and Beaverbuild will integrate their centralized block builder with BuilderNet. There are also plans to accelerate the adoption of decentralized sequencing by offering BuilderNet through Rollup-Boost.

Aligned Layer introduces ZK verification layer

After nine months of development, Aligned Layer launches its ZK verification layer that allows proof verification at 10% of the cost. These savings are achieved through recursive proof verification, which creates a single proof attesting to the validity of all proofs contained in a batch. The current version enables proof verification at 200 proofs per second and 2100 gas per proof. Aligned Layer's zk verification layer allows users to choose from different proof systems based on their requirements with support for Groth16, Plonk, SP1, and Risc0. The ZK verification layer will support Jolt and Nexus in the future.

Compute Labs partners with NEAR to bring AI-FI cross-chain

Compute Labs brings its Compute Tokenization Protocol to NEAR, enabling the tokenization of their compute resources via GNFTs and fostering a growing AI-FI ecosystem on NEAR. NEAR's chain signature technology also allows for cross-chain operations of GNFTs beyond just NEAR. 

The Dawn of AI agents

Consumers and businesses are exploring different use cases for AI agents. Much of the hype can be attributed to Virtuals Protocol, a unicorn startup that allows users to launch an AI agent on their platform. Several AI agents have already been launched that have received notable traction on their own. One example is AIXBT, a crypto intelligence agent widely commended for its ability to provide valuable insights and engaging content. There are more than 28,890 holders, more than doubling the number since 22 November, a testament to the optimism surrounding AIXBT's ability to deliver timely and relevant crypto news. Another agent that has garnered significant attention is ZEREBRO, which integrates AI with music and now commands a market cap of over $400M after releasing the album "Lost In Transmission."

With every successful project on Virtuals Protocol comes a slew of copycat platforms vying for a share of the AI agent pie. On Solana, users have already created more than 2,000 AI agents on Vvaifu.fun, underscoring AI agents' momentum in this current market cycle. Value is accrued to native token $VVAIFU whenever users launch an AI agent or unlock new capabilities.

Aethir Cloud integrates with LayerZero to go omnichain

Aethir Cloud announces its integration with LayerZero, which will enable a seamless transition of ATH tokens during its migration to Sophon Chain, a ZK chain built using zkSync hyperchain technology. Aethir Cloud will also use Stargate Bridge to unlock cross-chain swaps of ATH tokens with instant guaranteed finality. 

OpenAI releases its latest model 

OpenAI releases its latest model, o1, along with ChatGPT Pro, a $200 subscription that allows access to o1 pro mode. With pro mode, users can enjoy more computational power, which is helpful for the most challenging questions. On several benchmarks, o1 outperforms other versions of the model in science, programming, and mathematics—abilities that may be useful for teams operating on the cutting edge of blockchain and digital assets, such as those in DeSci or data verification protocols. 

Ethena submits a proposal for Spark's $1B Tokenization Grand Prix

Ethena Labs and Securitize propose featuring Ethena's USDtb, a stablecoin backed by BlackRock's BUIDL, in Spark's $1 billion Tokenization Grand Prix, a competition aimed at integrating and incentivizing real-world assets (RWAs) into DeFi. Central to the proposal is a swap mechanism between USDtb and Ethena's synthetic stablecoin, USDe, enabling participants in the Sky ecosystem (formerly MakerDAO) to manage liquidity and risk dynamically across the stablecoins based on market conditions, enhancing financial flexibility and stability. 

Binance launches BFUSD

Future traders can rejoice: Binances launches Binance Futures USD from 27 November to 26 December. Traders who purchase BFUSD from the 120 million token supply can enjoy a base annual percentage yield of 29.18% and a boosted APY of 38.98%. 

Native USDC coming to Aptos

Circle's USDC, the second-largest stablecoin by market capitalization, will soon be available on the Aptos network. This development introduces the Cross-Chain Transfer Protocol, enabling efficient USDC transfers between Aptos and eight major blockchains, including Ethereum, Solana, and Arbitrum. The integration supports over 72 cross-chain transaction routes for onchain activities, all with 1:1 capital efficiency. 

Furthermore, Stripe, a leading payment platform, will integrate native USDC on Aptos, providing a seamless fiat on-ramp for merchant transactions through Aptos-compatible wallets. This integration is a positive development for the ecosystem as stablecoins comprise over 25% of Aptos TVL, so USDC users from other chains now have easy access to the ecosystem. 

Coinbase will end USDC yields for users in Europe due to MiCA regulations

In an email, Coinbase announces it will end its USDC rewards program for all customers in the European Economic Area beginning 1 December. Coinbase cites the European Union’s Markets in Crypto Assets (MiCA) laws for stablecoins. European residents in affected markets can still buy, sell, send, and receive USDC.