Uniswap proposes protocol fee activation as Base ditches Optimism for unified stack

Two of crypto's most significant infrastructure decisions are unfolding simultaneously. link">Uniswap's governance is considering activating protocol fees across all remaining v3 pools on Ethereum mainnet while expanding to eight additional chains, a move that could dramatically boost the protocol's revenue collection [The Block](https://www.theblock.co/post/390456/uniswap-governance-considers-activating-protocol-fees-on-all-v3-pools-expanding-to-eight-additional-chains). This represents a fundamental shift toward value accrual for UNI token holders and the protocol's long-term sustainability. Meanwhile, Base has announced it's abandoning Optimism's shared OP Stack for a "unified, Base-operated stack," marking a significant departure from the collaborative Superchain vision [The Block](https://www.theblock.co/post/390380/coinbase-incubated-base-network-to-ditch-optimism-for-unified-solution). This move, driven by desires to "accelerate innovation, scaling and security," signals Base's confidence in going it alone but could fragment the L2 ecosystem [Shoal Research Hub](https://t.me/shoalresearch/13081). The decision sent OP token down 4% as investors questioned the future of the Superchain thesis. These moves represent a broader theme of protocols prioritizing autonomy and revenue optimization over collaborative infrastructure sharing, potentially reshaping how Layer 2 ecosystems develop and monetize.

The prediction markets sector faces a critical regulatory inflection point as the CFTC asserts exclusive federal jurisdiction over these platforms, potentially overriding state gambling regulations [The Block](https://www.theblock.co/post/390427/cftc-states-prediction-markets-td-cowen). CFTC Chair Selig filed an amicus brief defending the commission's authority, setting up a legal battle that will determine whether platforms like Kalshi and Polymarket operate under federal derivatives law or state gambling rules. TD Cowen analysts give states "a slight edge" in this fight, citing historical precedent in sports gambling regulation. Despite regulatory uncertainty, the sector continues attracting institutional validation. The Federal Reserve published research praising Kalshi's prediction markets as providing "high-frequency, continuously updated, distributionally rich" forecasts that are "valuable to both researchers and policymakers" [Shoal Research Hub](https://t.me/shoalresearch/13088). Sports-focused platform Novig raised $75 million in Series B funding led by Pantera Capital at a $500 million valuation, directly competing with established players [Shoal Research Hub](https://t.me/shoalresearch/13075). The regulatory outcome will determine whether prediction markets can scale as mainstream financial infrastructure or remain niche betting platforms, with billions in potential market cap hanging in the balance.

DeFi security remains a critical vulnerability as protocols face ongoing exploits and technical failures. Moonwell suffered $1.8 million in bad debt after an oracle misconfiguration valued cbETH at $1.12 instead of $2,200, allowing bots to exploit the pricing error and seize collateral [Daily Intel by Alea Research](https://t.me/alearesearch/1357). This follows CrossCurve's recent exploit, highlighting persistent smart contract risks in the lending space. To address these challenges, OpenAI and Paradigm launched "EVMbench," an AI-powered benchmark for detecting, patching, and exploiting smart contract vulnerabilities using real-world audit data [The Block](https://www.theblock.co/post/390408/openai-and-paradigm-partner-on-ai-agent-tool-for-smart-contract-security). The tool represents a potential breakthrough in automated security testing, though its real-world effectiveness remains to be proven. Meanwhile, infrastructure consolidation continues with Kraken acquiring token vesting platform Magna, which hit a peak TVL of $60 billion in 2025 [The Block](https://www.theblock.co/post/390358/kraken-buys-token-vesting-platform-magna-hit-peak-tvl-60-billion-in-2025). This marks Kraken's sixth acquisition in 12 months, signaling aggressive expansion into crypto-native infrastructure services.

Institutional crypto adoption continues with notable developments across traditional finance. Goldman Sachs CEO David Solomon revealed he owns "very little" link">bitcoin, marking his first public admission of cryptocurrency ownership while calling tokenization "super important" [The Block](https://www.theblock.co/post/390390/goldman-sachs-ceo-david-solomon-reveals-he-owns-very-little-amount-of-bitcoin). This follows a pattern of gradual institutional acceptance even as executives maintain cautious public positions. A mysterious Hong Kong firm emerged as the largest new IBIT holder, building a $436 million stake in BlackRock's Bitcoin ETF during late 2025, though the firm's identity and funding sources remain unclear [The Block](https://www.theblock.co/post/390359/mystery-hong-kong-firm-largest-new-ibit-holder-436-million-stake-2025). Meanwhile, crypto lending platform Ledn sold $188 million worth of bitcoin-backed bonds, though S&P Global assigned them a BBB- rating [The Block](https://www.theblock.co/post/390433/ledn-sells-188-million-worth-of-bitcoin-backed-bonds-bloomberg). Bitcoin's technical picture remains challenging, with K33 Research suggesting BTC is "approaching late bear market territory" after a 52% drawdown from highs [Daily Intel by Alea Research](https://t.me/alearesearch/1354). CheckonChain's analysis points to "top-heaviness" and "revived supply" as key headwinds, though on-chain behavioral signals still provide reliable market intelligence despite exchange and ETF noise [CheckonChain](https://newsletter.checkonchain.com/p/q-and-a-top-heavy-markets-air-pockets).

Layer 2 development activity remains robust despite market headwinds. Robinhood Chain's testnet processed four million transactions in its first week, with CEO Vlad Tenev highlighting the Arbitrum-based L2's focus on tokenized real-world assets and onchain financial services [The Block](https://www.theblock.co/post/390440/robinhood-l2-testnet-four-million). This positions Robinhood to compete directly with traditional finance rails using crypto infrastructure. link">Ether.fi announced it's migrating its non-custodial crypto card product from Scroll to OP Mainnet, moving "70,000 active cards, 300,000 accounts, and millions in user TVL" over the coming months [The Block](https://www.theblock.co/post/390420/ether-fi-shifts-non-custodial-crypto-card-product-op-mainnet-scroll). The migration reflects ongoing competitive dynamics among Layer 2 platforms for high-value applications. Balancer V3 reintroduced Liquidity Bootstrapping Pools (LBPs) with significant improvements, including zero-collateral launches requiring only project tokens and fixed-price sales that skip bonding curves entirely [Shoal Research Hub](https://t.me/shoalresearch/13079). These features could lower barriers to token launches while providing more predictable price discovery mechanisms.