Berachain Launches Native Lending Protocol Bend, Integrating Morpho for Risk-Isolated DeFi

Executive Summary

Berachain, an EVM-equivalent Layer-1 blockchain, has officially launched its native lending protocol, Bend. This new protocol integrates Morpho's Vault and Markets lending design, providing a risk-isolated lending environment within the Berachain ecosystem. The launch is anticipated to significantly increase liquidity and user engagement on the platform, fostering positive sentiment around the network's development.

The Event in Detail

Bend Protocol serves as Berachain's primary lending layer, offering basic lending services within the ecosystem. Its integration of Morpho's Vault and Markets lending design ensures risk isolation with fixed parameters, a critical feature that allows users to maintain custody of their assets. This design prevents a failure in one market from directly affecting others, enhancing protocol stability. Users can participate in the HONEY vault, Berachain's native stablecoin, managed by Re7 Labs, and leverage wETH, wBERA, wBTC, and other stablecoins as collateral for borrowing activities. The protocol is designed to combine with Berachain's unique Proof-of-Liquidity (PoL) consensus mechanism to offer users double yields and BGT rewards.

Financial Mechanics

Bend Protocol facilitates programmable credit, stablecoin reserve management, and on-chain capital leverage for developers. The core financial instruments involved include the stablecoin HONEY, which is fully collateralized and soft-pegged to the US Dollar, serving as the base token for collateral and transactions. Users can mint HONEY by depositing whitelisted collateral into vaults or obtain it by swapping other assets. The governance token, BGT, is a key component of Berachain's tri-token model, alongside BERA for gas and HONEY for stability. BGT rewards are earned through activities like borrowing on Bend, providing liquidity to specific pools, and participating in other native decentralized applications such as the BEX decentralized exchange and the Berps leveraged trading platform. This multi-source reward system, tied to the Proof-of-Liquidity mechanism, incentivizes active participation and liquidity provision, distinguishing it from traditional Proof-of-Stake systems where staking often competes with DeFi usage.

Business Strategy & Market Positioning

Berachain's strategic positioning centers on its innovative Proof-of-Liquidity (PoL) consensus mechanism, where validators stake LP tokens rather than idle coins, keeping assets productive. This contrasts with traditional Proof-of-Stake systems by aligning incentives between validators, protocols, and users, rewarding liquidity provision directly. The launch of Bend establishes a foundational DeFi primitive, attracting liquidity and users by allowing access to capital without removing assets from productive pools. This approach aims to solve the "cold start" problem for new decentralized applications by enabling them to incentivize liquidity providers with BGT emissions. The EVM-identical architecture of Berachain ensures compatibility with existing Ethereum tools and smart contracts, minimizing development efforts for new projects. This strategy is backed by over $140 million in funding and aims to redefine DeFi with capital efficiency as a core principle.

Broader Market Implications

The introduction of Bend Protocol on Berachain is poised to have several implications for the broader Web3 ecosystem. In the short term, it is expected to drive increased activity and liquidity within Berachain, potentially increasing demand for HONEY and BGT as lending and borrowing options become available. Long term, Bend establishes a critical DeFi primitive, enhancing Berachain's competitive stance among Layer-1 blockchains by attracting more protocols and users. This model of integrating lending directly with a Proof-of-Liquidity mechanism could set a precedent for native lending protocols on other emerging chains, fostering a more productive and dynamic decentralized finance landscape. The emphasis on capital efficiency and incentive alignment could influence future blockchain design and investor sentiment towards networks that prioritize active liquidity over passive staking. The platform's institutional support and partnerships further underscore its potential for significant market penetration and ecosystem expansion.

source:

[1] Berachain Native Lending Protocol Bend Officially Launched (https://www.techflowpost.com/newsletter/detai ...)[2] Exploring Berachain: Analysis of its Native DeFi Protocols and Technical Key Points-Beosin (https://vertexaisearch.cloud.google.com/groun ...)[3] What is Morpho Protocol (MORPHO)? Everything You Need to Know - Coti News (https://vertexaisearch.cloud.google.com/groun ...)

Related News

Oct 17 2025, 18:26

Crypto Markets Face Volatility Amidst Ripple's $1B XRP Treasury Plan, MegaETH Buyback, and Record Bitcoin ETF Outflows

Executive Summary Crypto markets are currently navigating a period of heightened volatility, marked by significant institutional maneuvers and substantial investor deleveraging. This environment is characterized by Ripple's reported plan for a $1 billion XRP digital asset treasury, MegaETH's strategic pre-launch equity and token warrant buyback, and spot Bitcoin ETFs experiencing their largest net outflows since August. The Event in Detail Ripple's XRP Treasury Initiative Ripple Labs is reportedly seeking to raise at least $1 billion through a Special Purpose Acquisition Company (SPAC) to establish a dedicated XRP digital asset treasury. This initiative involves Ripple contributing a portion of its existing 4.74 billion XRP tokens, with additional capital from external backers. If successful, this entity could become the largest XRP-focused digital asset treasury of its kind, though official announcements and specific transaction details remain under discussion. MegaETH's Pre-Launch Buyback MegaETH, an Ethereum Layer 2 project, completed an "unusual" buyback of 4.75% of its pre-seed equity and token warrants from early investors. This transaction occurred prior to the project's anticipated mainnet and token launch later this year. While the total size and financing details were not disclosed, Shuyao Kong, MegaETH co-founder, stated the buyback was executed at a valuation exceeding the project's $20 million seed round, which itself implied a "9-figure" token valuation (at least $100 million). Kong noted the buyback was prompted by some investors needing to exit due to fund closures, and MegaETH acted as the buyer to maintain "aligned-ownership and long-term builders over pass-through capital." Spot Bitcoin ETF Outflows and Market Decline U.S. spot Bitcoin exchange-traded funds experienced a significant $536.4 million in total daily net outflows. This represents the largest single-day negative flow observed since August. Ark & 21Shares' ARKB led these outflows with $275.15 million, followed by Fidelity's FBTC at $132 million. Funds managed by BlackRock, Grayscale, Bitwise, VanEck, and Valkyrie also reported negative flows. Concurrently, spot Ethereum ETFs saw $56.9 million in net outflows. This period of significant outflows coincided with Bitcoin briefly falling below $104,000, its lowest point in ten months, following an 8.4% plunge. Total liquidations across the crypto market exceeded $10.3 billion, with long positions accounting for $16.83 billion in losses, triggered by broader macroeconomic pressures and U.S. tariff policies. FIFA NFT Platform Faces Regulatory Probe The Swiss gambling regulator GESPA filed a criminal complaint against FIFA's World Cup NFT platform, FIFA Collect. GESPA alleges that the platform operates illegal, unlicensed gambling services in Switzerland. The complaint stems from online competitions with "drops" and "challenges" that involve monetary participation and offer cash prizes, which GESPA considers lotteries or sports betting under Swiss law. FIFA Collect, initially launched on Algorand and later migrated to Polygon with plans for an Avalanche network, faces potential criminal liabilities that could impact its digital future. Market Implications Ripple's potential XRP treasury raise, if successful, could significantly increase institutional demand and liquidity for XRP, potentially mirroring corporate treasury strategies seen with other major cryptocurrencies. This move signals a deeper integration of digital assets into corporate balance sheet management. MegaETH's pre-launch buyback represents an unconventional but strategic approach to optimizing ownership structure and aligning incentives among stakeholders prior to a public token launch. This could set a precedent for how nascent Layer 2 projects manage early investor relations and token distribution, emphasizing long-term commitment over short-term capital. The substantial spot Bitcoin ETF outflows and broader market deleveraging indicate a sharp surge in investor risk aversion, driven by macroeconomic uncertainties and geopolitical tensions. This highlights market fragility and suggests potential for continued downward pressure on crypto asset prices in the near term. The correlation between traditional market headlines and crypto movements underscores the asset class's increasing integration into the global financial landscape. The regulatory action against FIFA Collect by Swiss authorities underscores growing global scrutiny on blockchain-based entertainment and NFT platforms, particularly regarding activities that may resemble unlicensed gambling. This case serves as a critical example of regulatory risk impacting digital asset valuations and investor confidence in the broader Web3 ecosystem, prompting platforms to re-evaluate compliance frameworks. Expert Commentary Nick Ruck, director at LVRG Research, observed that the $536 million in net outflows from Bitcoin ETFs primarily reflects "a sharp surge in investor risk aversion." He attributed this caution to a combination of "macroeconomic pressures, such as evolving U.S. tariff policies, and a broader market deleveraging event that has triggered significant liquidations across crypto assets." Ruck further suggested that these outflows signal "increased market fragility in the near-term" and anticipate "further downward pressure" on prices. Justin d'Anethan, Head of Research at Arctic Digital, commented on the market's attempt to stabilize amidst conflicting forces. "I believe we're witnessing a market that 'wants' to stabilize," he stated, but noted it is "still grappling with two unresolved forces: uncertainty around the geopolitical path and the lingering pressure of restrictive monetary policy that hasn't quite flipped yet." He added that while the market has reasons to be optimistic structurally, with inflation softening, "volatility will stay elevated" until clearer confirmations emerge. Amidst this volatility, Maelstrom, Arthur Hayes' family office, is actively raising a $250 million private equity fund to acquire profitable mid-sized blockchain companies. This strategy, focusing on "off-chain" businesses like trading platforms and blockchain data providers, indicates a belief in long-term infrastructure growth and consolidation within the industry, prioritizing stable revenue streams over speculative token ventures. Broader Context Ripple's pursuit of a $1 billion XRP treasury aligns with a growing trend among corporations to incorporate digital assets into their balance sheets, reminiscent of strategies employed by entities like MicroStrategy. This signals an evolving perspective on cryptocurrencies as strategic corporate assets rather than purely speculative investments, potentially fostering broader institutional adoption. The regulatory challenges faced by FIFA Collect serve as a critical case study in the intersection of traditional organizations, blockchain technology, and regulatory compliance. It highlights the imperative for projects in the Web3 space, especially those involving tokenized incentives or gamification, to meticulously navigate legal frameworks to avoid criminal liabilities and safeguard investor confidence. This increased scrutiny will likely lead to more robust compliance standards across the sector. The strategic investment approach of Maelstrom, targeting established, cash-flow-positive blockchain businesses, underscores a maturation in the crypto investment landscape. This focus on acquiring and enhancing operational efficiency within core infrastructure providers suggests a shift towards sustainable growth and value creation beyond pure token speculation. Such private equity activity contributes to industry consolidation and strengthens the underlying technological backbone of the Web3 ecosystem.

Oct 17 2025, 17:29

Asia's Ethereum Backers Plan $1 Billion ETH Treasury via Nasdaq Acquisition

Executive Summary A consortium of prominent Asian Ethereum backers, including founders of Huobi and Fenbushi Capital, is establishing a $1 billion ETH digital asset treasury firm and seeking to acquire a Nasdaq-listed company to facilitate the initiative. The Event in Detail A group of Asia's earliest and most notable Ethereum backers plans to launch a $1 billion ETH digital asset treasury (DAT) firm. This consortium includes Li Lin, founder of Huobi and chairman of Avenir Capital; Shen Bo, founder of Fenbushi Capital; Xiao Feng, CEO of HashKey Group; and Cai Wensheng, founder of Meitu Inc. The initiative involves acquiring a Nasdaq-listed firm to facilitate the launch of the ETH DAT. Commitments totaling hundreds of millions of dollars have already been secured from regional investors, with Avenir Capital alone pledging $200 million. The key figures involved have deep historical ties to Ethereum and the broader crypto industry. Vitalik Buterin, Ethereum's creator, co-founded Fenbushi Capital in 2015. Additionally, HashKey's Feng and Buterin recently established the Ethereum Applications Guild to support on-chain application development. Meitu Inc., under Cai Wensheng, was an early corporate adopter of crypto treasuries, initiating a $40 million purchase of Bitcoin and ETH in 2021. Cai Wensheng is also known for acquiring over 10,000 BTC during the 2018 bear market. Financial Mechanics and Business Strategy The strategy to acquire a Nasdaq-listed firm for the ETH DAT echoes the playbook pioneered by companies like MicroStrategy, which leveraged its public listing to raise funds for Bitcoin acquisitions. However, Nasdaq's 2025 listing reforms introduce new financial and procedural barriers. These include a $15 million minimum public float for new listings under the net income standard and a $25 million minimum public-offering proceeds requirement for Chinese-based DAT firms, which could impact smaller regional players. Furthermore, shareholder approval is now required before issuing new shares to fund crypto purchases, a rule introduced to prevent opaque capital-raising practices. This added scrutiny has previously led to market volatility, such as a 3.5% stock drop for MicroStrategy following such announcements. The move by these Asian backers aligns with a broader trend in corporate treasury management where digital assets are increasingly viewed as a diversified reserve strategy. While the overall DAT sector has historically been dominated by Bitcoin, Ethereum has seen a notable surge in corporate interest. Firms like BitMine and SharpLink have significantly increased their ETH holdings, with BitMine Immersion Technologies becoming the largest public ETH treasury, holding approximately 2.83 million ETH. The pace of new ETH allocations has surpassed new Bitcoin buys in recent periods, driven by a "yielding reserves" thesis that values ETH staking rewards as an offset to holding costs. Market Implications The establishment of a $1 billion ETH DAT by prominent Asian investors holds significant implications for the Ethereum ecosystem and the broader Web3 market. In the short term, this initiative could bolster confidence in Ethereum's institutional appeal and potentially influence the ETH price positively due to increased demand from such a large treasury. Long-term, it establishes a substantial institutional player within the ETH ecosystem, potentially paving the way for further corporate adoption and the development of sophisticated financial products built around Ethereum, particularly within Asia. This could also stimulate merger and acquisition activity in the crypto space involving traditional finance entities. The corporate shift towards Ethereum for treasuries reflects changing perceptions and the maturation of the digital asset market. Regulatory changes, such as the new fair-value accounting rule FASB ASU 2023-08, approved in 2025, allow companies to update crypto holdings quarterly based on market prices, easing reporting. This, combined with a more favorable U.S. policy environment following the end of "Operation Choke Point 2.0," encourages more firms to consider digital assets. The trend indicates that corporate treasuries are moving beyond the question of whether to hold digital assets to how to size, govern, and report them, with some projections suggesting crypto could become a standard balance sheet item by 2030. Broader Context The digital asset treasury model, while gaining traction, is not without its challenges. The QMMM case in September 2025, where a company's stock saw a dramatic surge after announcing a $100 million investment in Bitcoin, Ethereum, and Solana, was later met with SEC accusations of stock manipulation. This highlights the regulatory scrutiny and market volatility inherent in the space. However, the overall corporate crypto treasury market has grown substantially, with over 228 publicly traded companies adopting DAT strategies, funneling a collective $148 billion into crypto, a 628.3% increase from $15.38 billion within one year. This seismic change is driven by factors like inflation eroding fiat value and the increasing credibility of digital assets as a store of value. The entry of conservative capital pools like corporate treasuries into crypto deepens liquidity, broadens the holder base, and sets a peer benchmark, compelling other firms to evaluate similar opportunities. The focus on Ethereum in this new DAT initiative also underscores its growing role beyond merely a store of value, with an emphasis on its ecosystem for on-chain accessibility and composability for treasury operations. The emergence of platforms facilitating tokenized money market funds on Ethereum and regulated digital dollars earning interest in DeFi protocols further supports this trend.

Oct 17 2025, 17:00

AEON Expands Web3 Mobile Payments to Georgia, Integrating QR-Based Crypto Checkout

The Event in Detail AEON, a prominent Web3 mobile payment solution provider, has expanded its AEON Pay services into Georgia. This expansion enables users to execute QR-based cryptocurrency payments at more than 20,000 local merchants, with AEON facilitating direct settlement in Georgian Lari (GEL). The system integrates with the existing Keepz QR standard, which is already widely adopted across Georgia and forms a cornerstone of the local payment ecosystem. Keepz was also the first entity in Georgia to acquire an open banking license and to pioneer cryptocurrency payments for tax purposes. Through AEON Pay, users in Georgia are offered multiple transaction avenues, including direct crypto transfers, payments using their AEON wallet balance, or via integrated partners such as Bitget Wallet, KuCoin Pay, and Bybit Pay. For merchants, AEON manages the conversion and settlement directly in GEL, thereby mitigating potential cryptocurrency volatility risks. This expansion follows AEON's established presence in other emerging markets, including Southeast Asia, Nigeria, Brazil, and Mexico, where its network already serves over 20 million merchants and more than 10,000 global brands, including McDonald’s, Pizza Hut, and UNIQLO. Financial Mechanics and Operational Integration AEON Pay's operational model in Georgia focuses on bridging the gap between digital assets and traditional commerce by acting as a payment rails facilitator. The system processes cryptocurrency payments from consumers and ensures that merchants receive funds in their local fiat currency, GEL. This direct GEL settlement mechanism is critical for merchant adoption, as it insulates businesses from the price fluctuations inherent to cryptocurrencies. The integration with the prevalent Keepz QR standard minimizes disruption to existing merchant checkout flows and aligns with consumer payment habits in Georgia, where QR-based transactions are gaining traction. This approach removes friction for both users, who can utilize crypto in a familiar manner, and merchants, who gain access to a new customer segment without incurring cryptocurrency exposure. AEON's infrastructure supports omni-chain functionality and incorporates an AI Payments system designed for intelligent, automated transactions. This framework allows for autonomous management of payments, subscriptions, and remittances, enhancing the scalability and efficiency of crypto payments in real-world scenarios. Business Strategy and Market Positioning AEON's expansion into Georgia aligns with its broader strategic objective to drive mass crypto adoption, particularly in emerging markets characterized by a rapidly evolving digital payment landscape. By leveraging established local payment infrastructure, such as the Keepz QR standard, AEON positions itself for rapid market penetration and user acquisition. The company's business logic centers on simplifying complex crypto transactions into user-friendly, fiat-settled experiences, thereby enhancing the utility of digital assets for everyday purchases. AEON has established itself as a significant player in crypto payment settlement networks, utilizing QR codes and bank transfers across its operational regions. The company's roadmap outlines an ambitious plan to achieve 80% global coverage for real-world crypto payment scenarios by 2026, with intentions to integrate with major card networks like Visa and Mastercard for one-time, authorization-free crypto payment mechanisms. This strategy emphasizes creating a borderless, AI-driven commerce ecosystem that integrates crypto into mainstream consumer environments. Broader Market Implications The introduction of AEON Pay in Georgia signifies a tangible increase in the real-world utility of cryptocurrencies within the country's economy. By providing a seamless, fiat-settled crypto payment option for a substantial number of merchants, the initiative is expected to foster broader acceptance and usage of digital assets among the general populace. This move could serve as a model for other emerging markets seeking to integrate Web3 solutions into their financial infrastructures, potentially accelerating global corporate adoption trends for cryptocurrencies. From a Web3 ecosystem perspective, AEON's expansion reinforces the narrative of digital assets transitioning from speculative instruments to practical mediums of exchange. The emphasis on AI-native applications and autonomous payment agents suggests a future where crypto transactions are not only commonplace but also intelligently managed, further integrating decentralized finance into daily economic activities. This development contributes to strengthening investor sentiment regarding the long-term viability and mainstream potential of the digital asset class, demonstrating concrete progress in usability and accessibility. The success of such initiatives can inspire competitors and traditional payment providers to explore similar integrations, leading to a more interconnected and digitally advanced global payment landscape. The collaborative approach with local fintechs like Keepz also highlights a viable pathway for crypto innovation within existing regulatory and market frameworks.