1. Forecast

1. Macro-level summary and future forecast

Last week, some significant changes occurred at the U.S. macroeconomic level. Gold prices fell more than 1% and experienced a full turnover decline, the first weekly decline since the announcement of peer tariffs. In addition, due to the impact of US tariff policies, several U.S. companies have been hit, such as Stelantis Group and General Motors suspended their 2025 earnings growth forecasts on April 30 and April 29, respectively. These signs indicate that the current macroeconomic environment in the United States is facing certain challenges.

In the future, the market is still trying to find certain investment opportunities. Additionally, this tariff-induced uncertainty is expected to affect corporate earnings forecasts and could lead to more companies reevaluating their annual guidelines. At the same time, considering that the IMF recently lowered its global economic growth forecast to 2.8%, this indicates that growth in the global economy, including the United States, may be at a low level in the coming period.

2. Market changes and early warnings in the crypto industry

The crypto industry market experienced several important changes last week. Although Bitcoin has experienced a certain degree of fluctuation, it has maintained a relatively stable trend overall and continues to fluctuate at a high level. However, for altcoins, the performance this week was more diverse, with only a few projects able to achieve significant price increases, while most were in a state of fluctuation and decline.

Entering this week, market participants should focus on the latest interest rate resolution to be announced by the Federal Reserve in the early morning of Thursday and the subsequent speech of Federal Reserve Chairman Powell. This interest rate resolution and Powell's statement may provide new guidance for future monetary policy paths and become an important weather vane that affects the global financial market and even crypto asset prices.

3. Industry and track hot spots

Inco implements A16z and Coinbase to lead the $5 million investment, which is a modular L1 chain that utilizes FHE technology; Catalysis is building the first security abstraction layer. By abstracting the complexity of shared security mechanisms, Catalysis provides developers and node operators with a seamless and unified solution; Symbiotic is a shared security protocol designed to create an economically secure market. It enables networks that need security to obtain security from those who own assets for pledge, thus creating an efficient ecosystem.

2. Market hot tracks and weekly potential projects

1. Potential track performance

1.1. **A16z and Coinbase participated in the lead investment of $5

million, using FHE technology to achieve Web3 democratization**

Inco is a modular Layer-1 blockchain that uses fully homomorphic encryption (FHE) to provide confidential computing, enhancing on-chain privacy and scalability for developers and users in the Ethereum ecosystem. Inco's focus is to democratize liquidity access and promote the popularity of Web3. It provides a seamless, privacy-oriented experience for the creation of innovative decentralized applications (dApps), covering multiple fields, including gaming, DeFi, payment, governance and identity management.

Inco has two core protocols: Inco Lightning and Inco Atlas . **
**Inco Lightning uses trusted execution environments (TEEs) to provide verifiable confidential computing and is extremely fast. It introduces new private data types, operations and access controls that allow smart contracts to process sensitive data securely. No need to create a new chain, no new wallet is required. Just import our Solidity library and you can start building privacy-protecting decentralized applications (dApps).

Powered by Fully Homomorphic Encryption (FHE) and Multi-Party Computing (MPC), Inco Atlas is expected to be released in the near future.

Brief description of the architecture

Inco's architecture consists of four main components that work together to provide confidential computing power:

1. Smart Contract Library
2. Confidential Computing Node
3. Decrypt node + callback repeater
4. Client JavaScript Library

Together, these components provide developers with a seamless experience that enables them to build privacy-protected applications on the blockchain. The system handles encrypted data types, performs confidential computing, and manages secure decryption processes while maintaining compatibility with existing EVM blockchains.

1. Component introduction

Smart Contract Library

This library extends EVM to support encrypted data types and operations. Deployed on the main chain, providing the following functions:

• Encrypted data types : ebool, eaddress, estring, euint32
• Arithmetic operations : add, e.sub, e.mul
• Comparison operation : eq, e.le, e.gt
• Conditional operation : select
• Decryption operation : asyncDecrypt

This library enables developers to write smart contracts that support encrypted data processing directly without modifying the underlying blockchain.

Confidential Compute Nodes

The confidential computing node runs in a trusted execution environment (TEE) and is responsible for performing encrypted computing tasks. Each node has the following functions:

• Run Inco's compute binary program in a secure TEE environment
• Process encryption operations based on blockchain event
• Verify access control before decryption is performed

Decryption Nodes + Callback Relayer

Multiple decryption nodes operate in the TEE consensus mechanism to ensure the security and verifiability of the decryption process. The entire decryption process is as follows:

1. Decryption request on the listener chain
2. Forward the request to TEE Decrypt the network
3. Collect signature decryption results from the network
4. Write the decrypted result back to the chain through a callback transaction

The on-chain verification mechanism ensures that all decryption proofs come from a trusted collection of decrypted nodes.

Client-side JavaScript Library

This library provides the user with the functions of interacting with the main chain and the Inco network:

• Encrypt user input data using network public key
• Handle one-time keys and EIP-712 signature generation (for requesting re-encryption)
• Decrypt the user locally and display the calculation results

Through these four components, Inco has built a complete end-to-end privacy protection computing framework, which is compatible with EVM, helping Web3 developers to easily implement privacy-protected dApps.

2. Decryption mechanism

Inco provides two types of decryption mechanisms:

Re-encryption: used to view data privately

Suitable for scenarios where users want to view their confidential data privately:

1. User signs an EIP-712 message to prove their wallet ownership
2. The client generates a temporary keypair (ephemeral keypair)
3. The user sends a decryption request containing a signed message and a temporary public key
4. Decrypt the node to verify the signature and check access control
5. The decryption node reencrypts the data using the temporary public key provided by the user to ensure that the data does not leak any information during transmission.
6. Users use temporary private key to complete decryption locally and view the results

(Te-way=TEE)

On-chain decryption (public decryption)

Suitable for scenarios where decrypted results need to be publicly put on the link:

1. Smart contract calls asyncDecrypt (encryptedValue) to initiate a decryption request
2. Decrypt the decryption event on the network listening blockchain
3. Decrypt the network query access control list (ACL) to verify permissions
4. Each decryption node decrypts the ciphertext and signs the decryption result.
5. The callback repeater collects sufficient signatures and submits the result to the smart contract through the callback transaction.
6. Smart contracts verify these signatures and continue the execution of logic using the decrypted value

This mechanism is suitable for scenarios where data needs to be disclosed to the entire network, such as on-chain voting results, fair game logic or disclosure of financial information.

Comments

Inco is a modular Layer-1/Layer-2 expansion solution with privacy as its core design concept. Through TEE and future FHE support, it guarantees EVM compatibility while empowering developers to build truly privacy smart contracts.

It is very suitable for Web3 application scenarios that need to process sensitive data, but it still needs to pay attention to its dependence on TEE, performance optimization and further improvement of decryption governance mechanism.

1.2. **What is special about Catalysis, a decentralized protocol that

raises $1.25 million and aims to be a security abstraction layer?**

Catalysis is building the first security abstraction layer to aggregate and unify economic security in various shared security protocols.

By abstracting the complexity of shared security mechanisms, Catalysis provides developers and node operators with a seamless and unified solution to help them build and manage decentralized networks, such as AVS (active verification service), BVS (basic verification service), and DVN (decentralized verification network).

Feature analysis

Catalysis Network is built on three core components:

1. Networks : Decentralized services, protocols and applications (AVS), leveraging shared security for verification and decentralized operations.

In the Catalysis ecosystem, Network refers to any decentralized protocol that provides a custom off-chain operation verification mechanism. A Network consists of on-chain verification contracts and off-chain operator networks. The off-chain section includes client software run by the network operator and verification logic specific to the network.

The operator executes the service on behalf of the Network and submits evidence of its execution to the network contract on the chain. Operators play a vital role in ensuring network integrity:

• Network can issue rewards if the operator performs the task correctly;
• If an operator acts maliciously, the assets pledged by its agent may be punished by the Network (punitive cuts, i.e. slash).

Different restaking ecosystems have different names for these Networks:

1. EigenLayer : Autonomous Verifiable Service (AVS, autonomous verified service)

2. Symbiotic : Network

3. Satlayer : Bitcoin Validated Service (BVS, Bitcoin Verification Service)

4. Jito : Node Consensus Network (NCN, Node Consensus Network)

5. Kernel : Dynamic Validation Network (DVN, dynamic verification network)

6. Node Operators : An entity that runs network software, performs verification tasks, and uses the Catalysis technology stack to ensure network security through the re-stake protocol.

Node operators are the backbone of Catalysis Network. They are the "engines" that run AVS infrastructure, providing economic security for the entire network.

Catalysis brings significant advantages to node operators by simplifying AVS infrastructure management across multiple restake platforms to make operations more efficient. With the Catalyst-CLI tool , operators can seamlessly manage their AVS configurations through a unified interface. This integration solution does not require the deployment of infrastructure for each platform separately, but provides one-time node settings, saving a lot of time and effort.

A key advantage of Catalysis is that it significantly reduces DevOps engineering costs , which not only reduces development spending, but also allows node operators to easily scale AVS management capabilities to support thousands of services without any additional investment.

In addition, Catalysis allows node operators of all sizes to participate in the operation of AVS infrastructure, and is no longer exclusive to large organizations. Such inclusiveness enhances the degree of decentralization of node operator sets and effectively deals with the increasingly prominent centralization problems in the current re-stake ecosystem.

3. Restaking Protocols : Also known as shared security protocol, it allows stakers to restake assets (such as LST, ERC-20 tokens, etc.) to provide security guarantees for network verification. These protocols are similar to a market that connects networks, node operators and stakers.

Shared Security Protocols (SSP, also known as re-stake protocol) builds a market for economic security, allowing decentralized networks to obtain security from stakeholders.

They act as coordination layers that connect three types of core participants:

• Stakers → Provide economic security through entrusting assets and maximize returns.
• Node Operators → Run network infrastructure and expand to high-value decentralized services.
• Networks → Obtain security by re-private assets.

Catalysis brings significant advantages to shared security protocols: by aggregating demand and acting as a distribution channel, creating a more competitive and equitable environment for these platforms. One of the key features is that Catalysis breaks the barriers between platforms , allowing various heavy staking agreements to compete fairly based on their own products' advantages in terms of cost and performance. This also creates opportunities for the rise of emerging agreements.

Catalysis promotes the development of the entire ecosystem by simplifying the access process of the Network and encouraging more projects to deploy as Network. As more and more Networks are attracted, both the Network team and SSP can benefit from growing engagement and achieve a win-win situation.

In addition to driving adoption, Catalysis also helps SSPs provide better features and more reliable economic security, making their platform more attractive to Networks that want strong security. The influx of high-quality networks further enhances the robustness and value of these protocols, laying a solid foundation for building a vibrant and competitive ecosystem in the future.

Comments

Catalysis is a highly innovative coordinated protocol dedicated to opening up and optimizing the multi-chain re-staking ecosystem. Its biggest highlight is that it improves the scalability, manageability and decentralization of AVS , and opens up new channels for growth for SSPs. Although it still faces challenges in technology and ecological construction, its design concept is in line with the key pain points and future trends in the current re-staking field and has strong development potential.

2. Detailed explanation of the project that week

**2.1. Detailed explanation of how Symbiotic, a shared security protocol

led by Pantera, followed by Coinbase and Aave, is so popular with VCs**

Introduction

Symbiotic is a shared security protocol designed to create an economically secure market. It enables networks that need security to obtain security from parties who own assets to be pledged, creating an efficient ecosystem where staking can be shared and utilized across multiple networks. With its flexible architecture, staking providers can maximize their returns, while the network can get the security they need.

Architecture Introduction

1. Core participants

• Pledger - An entity that provides assets through pledge deposits to earn rewards. They can be individual token holders, institutions, or liquidity (re)staking agreements. The pledger deposits the funds into a special smart contract (pled vault) managed by the curator, and the curator is responsible for managing the entrusted decision.
• Network - Systems that require economical security to operate safely. These can be Layer 1 blockchain, Layer 2 solutions or other decentralized systems that require staking-based security.
• Operator - A professional entity that maintains network infrastructure, responsible for running validators, nodes or other required systems. The operator is staked as per his duties and is responsible for the operation of the network.

2. Links between participants

The three core players - stakers, networks and operators - are connected together through a complex infrastructure layer. At the heart of the connection are the pledge vaults, which serve as the main interface between all participants.

Symbiotic coordinates and manages interactions in this ecosystem through:

• The pledger is allowed to deposit his assets into the pledge vault, and the curator manages the entrustment strategy and approves qualified operators.
• Promote network access security by connecting the network with the pledge vault and its associated pledges.
• Operators are allowed to receive pledge allocations through a pledge vault managed by the curator and perform their network responsibilities.

This interconnect system is monitored by a Resolvers, which verifies activity and ensures the security of all connections.

3. System relationships

The Symbiotic protocol facilitates several key interactions among participants, creating a strong and efficient security market. Here are how these key components work together:

• Pledge Account Management

1. Pledgee deposits their assets into the vault
   2. Each vault is managed by a guardian, and the guardian controls the pledge allocation.
   3. The guardian delegates the pledge to a qualified operator who is responsible for operating the network infrastructure
   4. A vault can serve multiple networks at the same time, thereby achieving efficient staking allocation between different operators
   The pledge delegation system has the following important characteristics :

• Assets remain securely locked in the vault and will not be transferred in actual

• Pledge entrustment is only carried out through the accounting system

• Assets can only leave the vault by:

  • Withdrawal of the original pledger
  • Verification penalties from the network

• Network operation

The network uses multiple vaults simultaneously, allowing the aggregation of security from different sources. This flexible architecture allows operators to accumulate pledges in different vaults, while the network can calculate their total pledge by combining delegations from different vault sources.

• Punishment process

1. The network can initiate punishment for operators by interacting with the operator's pledged vault (slashing)
2. If the operator has pledges in multiple vaults, the network can choose which vaults to punish them from
3. The analyzer acts as a verifier for the punishment event and has the right to veto
4. The analyzer can be an automated contract, a punishment committee, a dispute resolution framework, a multi-sign wallet or a DAO governance system. Network and vault curators agree on which parsers to use (or not use parsers at all) and on the terms of the penalty. During the punishment process, the network chooses which vaults to punish, and the analyzer reviews the event and can reject invalid punishment attempts.

Technical details

1. Mortgage

Collateral is a concept introduced by Symbiotic to achieve capital efficiency and scale by allowing assets used to safeguard Symbiotic networks to be held outside the Symbiotic protocol (for example, in DeFi locations on other networks).

Symbiotic achieves this by separating the slashing operation of assets from the underlying asset itself, similar to the tokenized representation of the liquid staking tokens that create the underlying staking location. Technically, the collateral assets in Symbiotic are ERC-20 tokens that have an expansion capability that can handle situations in case of a cut event. In other words, if the staking token is intended to support the cut mechanism, it should be able to create a Burner contract responsible for properly destroying the asset.

For example:

• If the asset is an ETH current pledged token (LST), it can be used as a collateral asset as long as it is able to create a Burner contract, extract ETH from the Beacon chain and destroy it.
• If the asset is a local governance token, it can be used as a collateral asset, as Burner can be implemented as a "black hole" contract or address.

Symbiotic allows staking tokens to be deposited into vaults that delegate secured assets to operators in the Symbiotic network. The vault defines acceptable collateral assets and their Burners (if the vault supports cut mechanisms), and the network needs to accept these and other vault terms, such as cut restrictions, in order to receive pledges.

2. treasury

The vault is the entrusted and re-pled management of Symbiotic. They deal with three key parts of the Symbiotic economy:

• Accounting : The treasury handles deposits, withdrawals and reduction operations of mortgaged assets and in turn deals with its underlying assets.
• Delegation Policy : The vault deployer/owner defines delegation and restaking policies that are delegated to operators in the Symbiotic networks that must choose to accept.
• Cut-down handling : Vaults provide a mechanism to maintain economic security of the network through cut-down operations.

Vaults are configurable, can be deployed in an immutable preconfigured manner, or an owner can be specified to allow them to update vault parameters. The vault is expected to be used by operators and curators (such as crypto institutions or mobile (re)staking agreements) to create differentiated products, such as:

1. Operator-specific vaults : Operators can create vaults that replenish collateral assets to their infrastructure, suitable for any configuration network. An operator can create multiple vaults with different configurations to serve its customers without the need for additional node infrastructure.
2. Curated multi-operator vault : Configure the restaken network and delegation policies into a diverse collection of operators. Curated vaults can also set custom cut limits to limit the amount of collateral assets that a particular operator or network can be cut. The terms of these commitments need to be accepted by the network, which will accept management services provided by the vault.
3. Immutable Preconfigured Vaults : Vaults can be deployed using preconfigured rules that cannot be updated to provide additional protection for users who are unwilling to accept the risk of the vault manager being able to add additional resolution networks or otherwise change configurations.

The vault contract consists of three main modules:

Accounting module (Vault) **
**This module is responsible for handling financial affairs of the vault, including:

• Process the user's deposits and track the balance
• Manage withdrawal requests and claims
• Implement cycle-based accounting reduction

All operations are performed in a single predefined staked token.

Limit and delegate logic module (Delegator) **
**Delegator handles the allocation of vault funds between the network and operators. It is implemented in the following ways:

• Allow the network to perform staking gate (i.e. how much pledge the network is ready to obtain from the vault), without implementing it on the network side
• Handle the administrator's operations on staking allocation
• Provide staking allocation data at any point in time

Cut logic module (Slasher) **
**The reduction module is responsible for execution penalties. Its functions include:

• Verify the validity of the cut request
• Implement different cut logic flows (e.g., cut immediately and veto cuts)

Interaction between modules

The vault module does not interact directly with other modules. However, it is used as a connection registry for other modules.

The entrustment module utilizes deposit information from the vault. These data are essential for determining accurate staking limits and ensure that the reduction process is consistent with the current state of the vault.

When a cut event is triggered, the cut module querys the delegate module to obtain the staking allocation information of the relevant operators and networks. This information is used to verify that the proposed cut exceeds the allocated stake. Then, the cut module interacts with the vault and continues to perform the destruction operation of the cut funds.

3. Counterparty

In Symbiotic, we define the network as any protocol that requires a decentralized infrastructure network to provide crypto-economic services, such as processing verification and sorting transactions, providing off-chain data to applications in the crypto-economic, or providing users with guarantees of cross-network interactions.

Decentralized infrastructure networks can leverage Symbiotic to obtain security through operators and financial support. In some cases, the protocol may consist of multiple subnetworks, each with a different infrastructure role. The modular design of the Symbiotic protocol allows developers of these protocols to define rules that participants need to opt-in to suit any of these subnets.

Summarize

The advantages of Symbiotic are its flexibility, decentralization, security and customization. By introducing modular design and secured asset management across networks, Symbiotic provides efficient and scalable solutions for decentralized infrastructure networks. However, the complexity of its system, risk management challenges, and cross-protocol compatibility issues cannot be ignored. Developers and operators need to fully understand the interaction and potential risks of each module when using Symbiotic in order to maximize their advantages and avoid possible operational errors.

3. Industry data analysis

1. Overall market performance

1.1 Spot BTC&ETH ETF

ETF, November 1, ET) Ethereum spot ETF total net outflow of 10.925,600 US dollars

1.2. Spot BTC vs ETH Price Trend

BTC

Analysis

Last week, BTC entered a period of weakening gains after rebounding to around $98,000. After the subsequent pullback falls below the short-term support of US$95,800, it means that the 4H-level upward pattern has been damaged. At this stage, the trend will enter a narrow range of US$93,000 to US$97,000 in the first half of this week. In the second half, it may fall below US$93,000 with the help of fundamental stimulation and continue to seek support on the lower range of US$91,500.

If fundamental indicators continue to imply high inflation, the probability of continuing to decline to $88,700 will increase, so users will be reminded to pay attention to the risks brought by the sharp short-term fluctuations brought by non-agricultural data this week.

ETH

Analysis

Although ETH continued to run along the upper half of the upward channel last week, it had shown a clear stagflation signal under the pressure of strong resistance of US$1,870. Although the currency price is still supported by the middle rail of the channel, the upward momentum is gradually drying up. Even if the rebound continues to be organized in the future, the probability of effectively breaking through US$1,870 or even going to the second-tier resistance test to US$1,960 is relatively low. On the contrary, if the fundamentals weaken, the trend falls below the middle track and goes downward, that is, the support of US$1,700 is close to the high probability, but in any case, the current upward channel pattern has not been destroyed, so users can still operate based on the support resistance of the upper, middle and lower tracks.

1.3. Panic & Greed Index

2. Public chain data

2.1. BTC Layer 2 Summary

Analysis

1. Stacks “Nakamoto Upgrade”: Enhanced Bitcoin Layer 2 Performance

The key upgrade of Stacks network – the Nakamoto upgrade – is scheduled to be officially launched between May 15 and May 29, 2025, with core changes including:

• Finality improvement: **
  **Transactions on Stacks will achieve 100% finality on the Bitcoin main chain, and their security will be consistent with Bitcoin itself and will be almost impossible to roll back.

• Throughput significantly increased: **
  **Block time will be shortened from 10–30 minutes to about 5 seconds, greatly speeding up transaction speed and on-chain interactive experience.

• Launch sBTC: **
  **Launches 1:1 new asset sBTC, which anchors Bitcoin, allowing Bitcoin to seamlessly participate in smart contracts and DeFi applications on Stacks.

This upgrade is intended to build Stacks into a native Bitcoin smart contract platform, further enhancing its scalability and programmability.

2. B² Network 's token generation event (TGE)

On April 30, 2025, the Binance Wallet Platform held a TGE event for the B² Network (B2) Layer 2 solution. The network is based on ZK-Rollup technology and has the following characteristics:

• Expansion and low cost: **
  **The goal is to increase the processing power of the Bitcoin network by 300 times while reducing transaction costs by 50 times.

• EVM compatible: **
  **Supports Ethereum virtual machine (EVM), can deploy smart contracts and dApps, and expands ecological flexibility.

• Cross-chain and ecological integration: **
  **Partner with platforms such as UniRouter and Particle Network to enhance cross-chain interoperability and user engagement.

TGE activities have attracted widespread attention from the market, with a total of 8.4 million B2 tokens allocated for future ecological incentives.

2.2. EVM &non-EVM Layer 1 Summary

Analysis

Ethereum ecosystem upgrade

• Pectra Upgrade: Ethereum is implementing Pectra Upgrades to improve wallet infrastructure and address broader ecosystem challenges. The upgrade will redefine user interaction with Ethereum, enhancing user experience by enhancing chain abstraction and simplifying wallet experience.
• Uniswap Labs launch Unichain: Uniswap Labs launches “Unichain,” a Layer 2 solution designed to enhance user experience and solve fragmentation problems on Ethereum. Unichain introduced “Rollup-Boost”, a new block building mechanism designed to speed up transactions and reduce MEV (maximum extractable value) through a fair-first Gas auction model. However, as of now, the appeal of the project is still limited.

2. Telos zkEVM Development

• SNARKtor Integration: The Telos Foundation announced its plans to integrate SNARKtor into zkEVM, which is expected to be completed by the end of 2025. This technology will use hardware acceleration to perform Rollup operations on Ethereum to improve scalability and efficiency.

3. Ondo chain release

• Institutional Blockchain: Ondo Finance launched Ondo Chain, a Layer 1 PoS (Proof of Stake) blockchain that combines the openness of public chains with the compliance and security features of licensed chains. The infrastructure is designed to enable tokenization of real-world assets in large-scale applications.

Non-EVM Layer 1 Highlights

1. Agoric 's interoperability breakthrough

• JavaScript Integration: Agoric simplifies blockchain development by integrating the widely used programming language JavaScript into its platform. This approach attracts a wider range of developers and promotes a more inclusive Web3 ecosystem.
• Cross-chain enhancement: The platform's Orchestration API shortens the cross-chain USDC transfer time from 16 minutes to 2 minutes. In addition, cooperation with Native and Union has promoted trustless bridging between Cosmos and major EVM chains such as Ethereum and Arbitrum.

2. Polkadot 's Roadmap for 2025

• EVM and Solidity Support: Polkadot's 2025 roadmap includes support for EVM and Solidity, thereby improving compatibility with Ethereum-based projects.
• XCM v5 and elastic scaling: The introduction of XCM v5 is designed to improve cross-chain messaging, while multi-core architectures will increase processing power to meet the growing on-chain demand.

3. SPID-Chain interoperability solutions

• DAG-based architecture: SPID-Chain adopts a directed acyclic graph (DAG) structure, which promotes seamless integration between multiple blockchains. This design enhances interoperability and scalability in the Web3 ecosystem.

2.3. EVM Layer 2 Summary

Analysis

Ethereum Pectra upgrade is approaching: **
**Ethereum 's Pectra hard fork is scheduled to be launched on the main network on May 7. This upgrade will increase Layer 2's throughput, support more transaction processing, and optimize the Blob data storage mechanism to reduce transaction fees. In addition, the Historical State Expiry feature will also be enabled to reduce node storage pressure.

Celo completes migration to Ethereum Layer 2: **
**Celo has successfully migrated from the standalone Layer 1 blockchain to the Ethereum Layer 2 network, using Optimism 's OP Stack and EigenDA protocols. This shift improves its security, scalability and interoperability with the Ethereum ecosystem.

DTVM smart contract execution framework is released: **
**The research team launched the DeTerministic Virtual Machine (DTVM) framework, aiming to solve performance and determinism issues in smart contract execution. The framework is compatible with EVM ABI and supports multilingual development such as Solidity, Rust and Go, which significantly improves execution efficiency.

4. Macro data review and key data release nodes next week

The U.S. GDP in the first quarter of 2025 shrank by 0.3% on a month-on-year basis (actual year-on-year growth rate of 2%), the first negative growth in three years, mainly dragged down by the surge in imports and the weakening margin of consumption. Under the tariff expectations, enterprises' "grab imports" caused imports to soar by 41.3% month-on-month and year-on-year, and the drag on GDP by net exports expanded to 0.9 percentage points.

This week (May 5-May 9) important macro data nodes include:

May 8: Fed interest rate decision from the United States to May 7 (upper limit)

V. Regulatory policy

EU (EU)

Establish the Anti-Money Laundering Administration (AMLA)

• April 28, 2025 : The EU released a document detailing the background of AMLA’s establishment, governance structure and its extensive regulatory powers. AMLA will officially start operation in January 2028.
• AMLA will coordinate regulatory bodies in member states to directly regulate high-risk entities and develop binding technical standards to ensure a unified anti-money laundering/anti-terrorism financing (AML/CFT) regulatory system across Europe.

UK (UK)

Draft regulation of crypto exchanges and traders

• April 29, 2025 : The British government proposed a draft legislation in accordance with the Financial Services and Markets Act 2000, which included cryptocurrency exchanges, traders and agents in the scope of supervision for the first time, requiring them to comply with requirements such as transparency, consumer protection and operational resilience.

Stablecoin Issuer Waiver Rules

• April 29, 2025 : Chancellor Rachel Reeves announced that the UK will only require "local stablecoin issuers" to obtain approval from the Financial Conduct Authority (FCA) and overseas issuers will receive exemptions, a move aimed at integrating with proposed U.S. regulations.

Ministry of Finance issues draft "Crypto Asset Order"

• April 29, 2025 : The UK Ministry of Finance issued a draft bill called the Financial Services and Markets Act 2000 (Regulatory Activities and Miscellaneous Articles) (Crypto Assets) Order 2025, accompanied by a policy note.
• This draft intends to include crypto asset-related activities in the scope of supervision, so that service providers and issuers must pass eligibility review, comply with prudent regulatory requirements, and accept the sanctions granted by the FCA.

USA (USA)

SEC clarifies crypto asset securities disclosure requirements

• April 29, 2025 : The Finance Department of a subsidiary of the Securities and Exchange Commission (SEC) issued a statement, clarifying that issuers of crypto-asset securities must disclose detailed information including network development progress, governance structure, and token holders' rights (such as dividends, profit sharing, voting rights, etc.).
• The disclosure guide aims to unify market practices, strengthen investor protection, and reduce legal uncertainty in token issuance.