According to @KookCapitalLLC, the decentralized finance (DeFi) sector is experiencing a significant transformation, with total value locked (TVL) in top lending protocols like Aave and Morpho surging 60% over the past year to nearly $60 billion. A report from analytics firm Artemis and Vaults.fyi attributes this growth to increasing institutional participation and the integration of DeFi as a backend layer for user-facing apps, a trend known as the "DeFi mullet". For instance, Coinbase's integration with Morpho has originated over $300 million in Bitcoin (BTC) backed loans. The report also highlights the rise of on-chain asset managers, whose capital under management has quadrupled from $1 billion to over $4 billion since January, and the growing use of tokenized real-world assets (RWAs). In specific market events, the Polyhedra protocol's ZKJ token plummeted over 80% following what the team described as a coordinated liquidity attack on PancakeSwap. The Polyhedra team responded by injecting approximately $30 million in USDT, USDC, and BNB to stabilize liquidity and announced an upcoming buyback plan. Other significant developments include JPMorgan piloting a permissioned USD deposit token (JPMD) on the Base network and the U.S. Senate passing a stablecoin bill with strong bipartisan support, signaling potential shifts in the regulatory landscape.