TRON Industry Weekly Report: The correlation between the crypto market and US stocks hits a new high, Sui leads the integration of the DeFi infrastructure layer Ferra, which combines three major AMMs

# I. Outlook

1. Summary of Macroeconomic Trends and Future Predictions

Last week, the U.S. macroeconomic landscape faced two key turning points: first, the government shutdown officially ended, and the 43-day impasse severely disrupted data collection and fiscal spending. Relevant statistical agencies announced the need to reschedule their release calendar, and the market is hopeful for an upcoming "data restart." Second, Federal Reserve officials publicly stated that, despite ongoing expectations for easing, the current inflation remains sticky, and the labor market has not significantly weakened, thus the likelihood of "rate cuts later this year" is decreasing. As a result, the market has retreated from the "early easing" atmosphere and is more focused on when policies will actually be implemented.

Looking ahead, the economy may enter a "data recovery + policy wait-and-see" phase. As data is republished, if it reveals that consumption, employment, or spending is significantly weaker than expected, the Federal Reserve may take measures such as rate cuts or balance sheet support before the end of the year; conversely, if the data shows inflation rebounding or the labor market stabilizing, the pace of easing will be delayed. Overall, the coming weeks will be a "data validation period," and large-scale policies may be postponed, making it difficult for market risk appetite to fully recover in the short term.

2. Market Movements and Warnings in the Crypto Industry

Last week, the cryptocurrency market weakened across the board, with Bitcoin breaking below the critical psychological level of $100,000 under multiple macro and sentiment pressures, triggering widespread panic in the market. As prices fell below key support levels, there was a surge in liquidations and capital withdrawals, with on-chain stablecoin inflows to exchanges reaching a two-month high, indicating a sharp rise in risk-averse sentiment. Some investors even began discussing whether "a new round of crypto bear market" has already begun.

Although some short-term funds attempted to bottom out at low prices over the weekend, overall sentiment remains pessimistic. ETF inflows have significantly slowed, and the open interest in derivatives has decreased, with institutional funds choosing to wait and see. On the macro level, delayed expectations for Federal Reserve rate cuts, a stronger dollar, and collective adjustments in risk assets further suppressed the rebound momentum in the crypto market. If Bitcoin cannot quickly regain a foothold above $100,000, the market may enter a mid-term adjustment cycle, potentially leading to a "technical bear market" in terms of confidence. In the short term, further liquidity contraction and on-chain selling pressure should be monitored, and a recovery in sentiment may still require time and signals of policy easing.

3. Industry and Sector Hotspots

Led by the Sui Foundation, $2 million in funding has been raised------the next-generation DeFi infrastructure Ferra, built on the SUI network, integrates DLMM, CLMM, and DAMM to provide deep, flexible, and efficient capital liquidity for DeFi developers, liquidity providers, and token projects; a total of $28.7 million has been raised, with Pantera leading and Coinbase participating------Coinflow, a full-stack payment infrastructure connecting traditional payments and Web3 finance, helps Web3 companies accept traditional payment methods and settles user earnings directly in dollars to bank accounts.

# II. Market Hotspots and Potential Projects of the Week

1. Overview of Potential Projects

1.1. Analysis of the $2 million funding led by the Sui Foundation------the next-generation DeFi infrastructure Ferra, built on the SUI network, integrating DLMM, CLMM, and DAMM

Introduction

Ferra is a dynamic liquidity layer natively built on the SUI network, providing deep, flexible, and efficient capital liquidity for DeFi developers, liquidity providers, and token projects.

At its core, Ferra combines three advanced AMM engines: DLMM (Dynamic Liquidity Market Maker), CLMM (Concentrated Liquidity Market Maker), and DAMM (Dynamic AMM), and is equipped with a complete toolkit, including:

• DBC (Dynamic Bonding Curve) ------ for easy token issuance;

• Internal pools and DEX aggregators ------ providing optimal price routing;

• Comprehensive API/SDK documentation ------ for seamless integration with the Sui ecosystem.

Core Protocol Overview

1. DLMM

Discrete Price Bins

In Ferra's DLMM (Dynamic Liquidity Market Maker) model, liquidity is divided into discrete price bins, each corresponding to a fixed price point (e.g., the price of SUI/USDC ranges from 2.5 to 4.1, with each 0.01 being a bin).

This differs from traditional AMMs (like Uniswap V2), which distribute liquidity continuously across all prices from 0 to ∞, leading to:

• High slippage for large trades;

• Low capital efficiency (a large amount of liquidity is distributed in price areas with no trades).

DLMM adopts a discrete price point design------each bin acts like an independent small market, allowing liquidity providers (LPs) to concentrate funds at specific price points, increasing returns and efficiency.

Zero-Slippage Swaps

Ferra's DLMM allows for zero-slippage trading within a single bin.

Mechanism principle:

• Within each bin, the price is fixed until the liquidity of that bin is exhausted;

• Therefore, trades within the capacity range of the bin do not trigger price changes.

For example:
If the current active price range for SUI/USDC is 3.00, with reserves of 1000 SUI and 3000 USDC,
when someone buys 100 SUI, they pay 300 USDC, and the price remains at 3.00 throughout.
Only when the SUI in that bin is sold out does the price "jump" to the next bin (e.g., 3.01), at which point slippage occurs.

In short: DLMM's pricing is "stepwise," not continuously changing.

Dynamic Fee

Ferra's DLMM uses a dual-rate fee mechanism:

• Base Fee: Set by the pool creator;

• Dynamic Fee: Changes with market fluctuations, with higher volatility leading to higher fees.

This mechanism allows LPs to earn higher returns during periods of high volatility to compensate for risk.

Liquidity Shapes and Strategies

Ferra provides LPs with three main liquidity distribution shapes:

• Spot Type: Concentrated near the current price, suitable for stablecoin pairs;

• Curve Type: Curved distribution, used for general tokens;

• Bid-Ask Type: Layout liquidity on both sides of the buy and sell zones, suitable for highly volatile assets (like MEME coins).

Additionally, Ferra supports:

• Single-Sided Liquidity;

• Custom distribution strategies, particularly suitable for new token issuances with limited initial liquidity.

2. CLMM

CLMM (Concentrated Liquidity Market Maker) is an advanced version of AMM (Automated Market Maker).

It allows liquidity providers (LPs) to concentrate funds in specific price ranges, rather than distributing them across all price ranges as traditional AMMs do. This design significantly improves capital efficiency, reduces trading slippage, and increases LP returns.

Key Components of CLMM

• Ticks: Discrete points dividing the price range, with tick spacing determining price precision.

• Liquidity Positions: LPs set upper and lower price ranges, which only take effect within that range to earn fees, with each position stored as an NFT.

• Fee Tiers: Different pools can set different fee rates (e.g., 0.01%, 0.05%, 0.3%), allowing LPs to choose strategies based on risk and trading volume.

Core Advantages

• Higher capital efficiency: Concentrated liquidity allows less capital to generate higher returns.

• Lower slippage: Deeper liquidity near the current price results in less impact on trades.

• Controllable risk: LPs can choose price ranges that suit their expectations.

• Greater revenue potential: Frequent trading in active ranges leads to higher fee returns.

• Leveraging SUI network advantages: Low cost and high scalability enable frequent rebalancing and handling of high-concurrency trades.

The CLMM implemented by Ferra on the SUI network achieves more efficient, flexible, and potentially profitable liquidity management through "concentrated liquidity + adjustable ranges + multi-fee mechanisms."

3. DAMM

DAMM (Dynamic Automated Market Maker) is a constant product AMM protocol deployed on the SUI network, featuring:

• Dynamic Fee

• Concentrated Liquidity

• Anti-Sniper Mechanism

It operates based on the formula (x \cdot y = k), but allows pool creators to set a fixed price range at initialization, concentrating liquidity within that range to enhance capital efficiency and reduce slippage.

Similar to Uniswap V3's concentrated liquidity, but the range in DAMM is fixed by the creator, and LPs cannot adjust it freely.

Technical Mechanisms

• Price Range
  Set by the pool creator during pool creation, defining the minimum and maximum prices, with trading only allowed within this range to prevent extreme fluctuations and concentrate liquidity.

• Liquidity Provision
  LPs deposit tokens in proportion to the current price, supporting single-sided liquidity (suitable for new token issuances or projects with limited funds).

• Invariant Preservation
  Still follows the (x \cdot y = k) model, but combines concentrated ranges, resulting in a hybrid structure of AMM and CLMM.

Fee Model

Base Fee

• Set by the pool creator (e.g., 0.3%), charged on each transaction based on the input amount.

Dynamic Fee

• Automatically adjusts with market fluctuations (up to 20%~100% of the base fee).

• The greater the volatility, the higher the fee, with LP returns increasing with risk.

Anti-Sniper Fee

• Prevents bots from maliciously "front-running" purchases when tokens are newly launched.

• Initial fees are extremely high (e.g., 10%~80%), then decrease linearly/exponentially over time or block height to normal levels (e.g., 0.3%).

• Commonly used during new token launches, airdrops, or liquidity initiation phases.

Swap Mechanics

Trading Process:

1. Users submit a swap request (input token, target token, minimum received amount).

2. The smart contract calculates the fees to be deducted (base + dynamic + anti-sniper).

3. The output quantity is calculated based on the constant product formula.

4. If the trade causes the price to exceed the pool range, only part of the trade is executed.

5. Reserves are updated, and fees are recorded.

Liquidity Operations

• Adding Liquidity

• Supports single-token or dual-token injections.

• LPs receive NFTs representing their share.

• If the current price exceeds the range, single-sided injections may be restricted.

• Withdrawing Liquidity

• LPs can withdraw assets proportionally.

• If the pool has a lock-up (permanent or linear unlock), a waiting period is required.

• Locked LP NFTs can be traded or used for governance voting.

Tron Comments

Ferra's advantages lie in: integrating DLMM, CLMM, and DAMM market-making mechanisms on the SUI network, achieving high capital efficiency, low-slippage trading, flexible liquidity distribution, and providing LPs with higher returns and security through dynamic fees, anti-sniper protection, and customizable fee ranges; at the same time, its comprehensive API, aggregator, and token issuance tools allow project parties and DeFi developers to easily access liquidity infrastructure.

The main disadvantages are: complex design, numerous parameters, and a high understanding and operational threshold for ordinary users and small projects; multi-layer mechanisms (dynamic fees, concentrated ranges, anti-sniper) may lead to higher operational and tuning costs; additionally, as a new protocol, its long-term stability and ecological depth still need market validation.

1.2. Interpretation of the $28.7 million funding, with Pantera leading and Coinbase participating------Coinflow, a full-stack payment infrastructure connecting traditional payments and Web3 finance

Introduction

Coinflow is a payment infrastructure provider that helps Web3 companies accept traditional payment methods and settles user earnings directly in dollars to bank accounts.
By providing familiar payment processes, it enables non-crypto-native users to more easily enter the Web3 ecosystem, while Coinflow manages the backend crypto and fiat settlement infrastructure, primarily serving games, NFT projects, wallets, and other Web3 applications.

Architecture Overview

1. Checkout

Coinflow Checkout is a flexible payment solution that helps merchants accept various payment methods, allowing customers to:

1. Make one-time purchases of goods or services;

2. Purchase platform-specific stored value credits (Coinflow Credits), which can only be used within the merchant's platform.

Supported Payment Methods

Customers can pay using the following methods:

• Credit/Debit Cards (Visa, Mastercard, Discover, American Express)

• Bank Transfers (ACH, SEPA, UK Faster Payments, PIX)

• Crypto Wallets (stablecoins and non-stablecoins)

• Apple Pay / Google Pay

A. One-Time Purchase
Customers can directly purchase goods or services offered by merchants using any supported payment method, with funds settled to the merchant's account as revenue.

Transaction Process:

1. Users enter credit card or bank information to complete the transaction;

2. Coinflow authorizes through the payment processor and conducts anti-fraud checks;

3. Coinflow sends funds to the merchant's settlement account and issues a payment callback (webhook);

4. Merchants receive settlement funds and notifications;

5. Users receive the corresponding goods or services.

2. Payout --- Instant Fiat Withdrawal System

Core Functionality

Coinflow Payout enables platforms to quickly and securely distribute funds or earnings to users, achieving seamless conversion from crypto assets to fiat.

Operational Mechanism

• Platform funds are stored in fiat, with Coinflow managing the conversion of crypto assets (USDC / EUROe) and fiat settlement in the background.

• Connects to global real-time payment networks (RTP, SEPA, UK Faster Payments, PIX), achieving instant settlement 24/7/365.

• Users can link bank accounts or debit cards to withdraw to multiple regions globally (U.S., EU, UK, Asia-Pacific, etc.).

Main Advantages

• Instant settlement (seconds-level arrival)

• Multi-currency support (USD, EUROe, USDC)

• No need to manage crypto wallets

• Global coverage and compliance risk control

3. Marketplace --- Web3 Payment and Trading Infrastructure

Core Functionality

Coinflow Marketplace provides a payment infrastructure that Web3 projects (such as games, NFT platforms, wallets) can easily integrate, supporting users to purchase goods and services using traditional payment methods or crypto assets.

Supported Payment Methods

• Credit/Debit Cards (Visa, Mastercard, Amex)

• Bank Transfers (ACH, SEPA, UK Faster Payments, PIX)

• Crypto Wallets (stablecoins / non-stablecoins)

• Apple Pay / Google Pay

Technical Mechanisms

• Coinflow Checkout is responsible for integrating multiple payment methods and anti-fraud verification;

• Settlement Engine achieves automatic revenue settlement;

• Supports two modes:

• One-Time Purchase: Users make one-time purchases of goods or services;

• Coinflow Credits: Users pre-load credits that can only be spent on the platform.

4. Subscription --- Web3 Recurring Billing and Membership System

Core Functionality

Coinflow Subscription supports platforms to offer users periodic subscriptions, memberships, and automatic renewal features, achieving stable revenue streams.

Feature Characteristics

• Supports monthly, quarterly, and annual subscription cycles;

• Can use credit cards, bank transfers, or crypto wallets for automatic renewals;

• Features smart failure retries and payment status notifications (Webhooks);

• Platforms can dynamically manage user subscription status, credits, and renewal strategies via API.

Application Scenarios

• VIP / Pass subscriptions for games or NFT platforms;

• Monthly payments for SaaS-type Web3 tools;

• Fan subscription systems for content creator platforms.

Tron Comments

Coinflow's advantages lie in: building a complete system that integrates Web2 payment experiences with Web3 financial infrastructure, supporting multi-channel collection and withdrawal from traditional payments (credit cards, bank transfers, Apple Pay) to crypto wallets; through modules like Checkout, Payout, Marketplace, and Subscription, it achieves a closed-loop process for collection, storage, settlement, and subscriptions. The platform does not need to manage crypto wallets or liquidity itself, as Coinflow handles the backend crypto conversion and fiat settlement, allowing both users and merchants to enjoy a fast, compliant, and familiar payment experience.

The disadvantages are: the system relies on multi-layer financial and compliance connections, resulting in relatively high implementation and integration costs; for purely crypto-native projects, the fiat-oriented architecture may weaken decentralization characteristics; additionally, differences in cross-border regulations and compliance with fund flows remain major challenges for its long-term expansion.

2. Detailed Explanation of Key Projects of the Week

2.1. Detailed Explanation of $11.5 million funding, led by HackVC, with DWF participating---a dual-engine ecological platform BlockStreet connecting real-world assets and decentralized finance

Introduction

BlockStreet is innovating decentralized finance through two groundbreaking products: a professional lending protocol and the industry's first tokenized asset aggregation layer.

The two work in synergy to create a unified decentralized finance ecosystem.

Architecture Overview

1. Aqua

Aqua is a hybrid liquidity aggregator designed for tokenized stocks and assets. It does not establish a new trading venue but connects multiple issuers and market makers to provide users with unified price access and optimal quotes from various integrated platforms.

Aqua operates as a smart routing layer between users and tokenized asset issuers:

• Through smart routing, Aqua can automatically find the best prices and liquidity among different issuers and market makers.

• This architecture addresses the price and liquidity fragmentation issues in the tokenized asset market, achieving a unified price discovery mechanism without requiring issuers to change their existing infrastructure.

Technical Architecture

Off-Chain Components

Core Functionality: Price Discovery and Quote Aggregation

• Quote Aggregation: Real-time collection of quotes from multiple issuers and market makers.

• Best Price Selection: Automatically selects the best price across the market.

• Signed Quote Generation: Generates cryptographically signed quotes using the EIP-712 standard for on-chain verification.

• Trade Initiation Interface: Provides users with API interfaces to request and execute trades.

On-Chain Components

1. Manager Contract

• Execution entry point responsible for the entire trading process.

• Responsibilities include: signature verification, trade routing, execution coordination, and security checks.

• Upgradable Solidity contract ensures system scalability.

2. Token Registry

• Maintains the mapping of all supported tokenized assets.

• Functions include:

• Binding token contracts to issuers

• Supporting multiple issuers (the same asset can be provided by different issuers)

• Role-based access control (admin, issuer, user)

3. Executor Registry

• Maps each issuer to its dedicated executor contract.

• Supports different trading standards (mint/burn, transfer, marketplace).

• Admin can safely upgrade execution logic to ensure flexibility and compatibility.

4. Executor Contracts

• Protocol adaptation layer for each issuer, responsible for actual token transfers and payment processing.

• Provides a unified interface:

• executeBuy / executeSell / validateTrade

• Customized based on different issuance modes (e.g., mint/burn, transfers, or order book mechanisms).

5. Issuer Token Contracts

• External contracts representing the actual tokenized asset realization.

• Includes payment logic, compliance controls, and asset custody logic.

• Can connect to direct tokens, market platforms, or custody contracts in three modes.

Trading Execution Process

1. Users request quotes through the frontend or API.

2. The off-chain system aggregates and selects the best price, generating a signed quote.

3. Users submit the signed quote to the on-chain Manager contract.

4. The Manager verifies the signature and selects the appropriate executor.

5. The executor calls the issuer token contract to complete the trade.

6. Settlement and asset transfer are completed.

Implementation: A hybrid model of off-chain smart aggregation + on-chain trusted execution.

Security and Scalability

Security Mechanisms

• Signature Verification: All quotes are verified for source using cryptographic signatures.

• Access Control: Registration and execution operations use role-based permission management.

• Trade Protection: Includes quote expiration times, verification layers, and circuit breaker mechanisms.

Performance Optimization

• Off-chain parallel quote processing and caching achieve millisecond-level response times.

• On-chain gas optimization and batch execution reduce transaction costs.

• Upgradable contract system supports protocol upgrades without migration.

2. Everst Protocol

Everst is a modular decentralized lending system improved based on mature lending protocols, specifically designed for tokenized asset lending scenarios, enhancing risk control, pricing, and liquidation mechanisms.

Blotroller (Asset Controller)

The core risk control and governance module of the protocol, responsible for managing market parameters and user account health.

Main Functions:

• Market creation and asset listing

• Collateral Factor and liquidation parameter management

• Interest rate model configuration

• Account liquidity calculation:
  Collateral asset value × Collateral factor − Total liabilities

BToken System

BToken is an interest-bearing token used to represent users' deposits and borrowing positions.

Key Mechanisms:

• Exchange Rate Calculation: exchangeRate = (totalCash + totalBorrows - totalReserves) / totalSupply

• Interest Accumulation: Dynamically compounded per block

• Reserve Accumulation: Interest from each borrowing proportionally enters the protocol reserves

Interest Rate Model

Adopts a Jump Rate Model, dynamically adjusting based on capital utilization:

Parameters include:

• Base Rate: Minimum interest rate

• Multiplier: Normal range interest rate slope

• Kink: Utilization rate inflection point

• Jump Multiplier: Accelerated interest rate growth after the kink

Additional optimizations for tokenized stocks:

• Automatically adjusts base rates during earnings seasons

• Increases jump multipliers during high volatility

• Adds liquidity incentives during non-trading hours

Oracle System

Utilizes a multi-oracle aggregation architecture to enhance price security and accuracy.

Integrated Sources:

• Chainlink: Heartbeat mechanism updates

• Pyth Network: High-frequency professional data sources

Security Mechanisms:

• Price Deviation Limits: Maximum deviation of 2%, exceeding which conservative prices are used

• Expiration Protection: Sets maximum price validity to prevent the use of outdated data

• Circuit Breaker: Automatically pauses the market during abnormal fluctuations

Stock Token Characteristics:

• Real-time synchronization during trading hours

• Locks closing prices during market close

• Smooth transitions at market open to avoid price jumps

Liquidation Engine

Adopts a Hybrid Liquidation System, balancing efficiency and large order processing.

• Path 1: DEX Liquidation

• Direct on-chain execution, automatically calculating collateral and rewards

• Path 2: OTC Liquidation

• Competes through market maker offline quotes, confirmed on-chain for settlement

Main Parameters:

• Close Factor: Maximum proportion of debt that can be liquidated in one go (5%-90%)

• Liquidation Incentive: Liquidator reward proportion

• Protocol Seize Share: Protocol reserve sharing

• Minimum Liquidation: Minimum profitable liquidation scale

Governance System

All key parameters are controlled through governance and time locks:

Governance Parameters Include:

• Collateral Factor, Reserve Factor

• Interest Rate Model Address

• Liquidation Reward Proportion

Governance Mechanism:

• Timelock: 2~30 days delay, including a 14-day buffer period

• Multi-signature Role Distribution:

• Owner: Proposals and execution

• Guardian: Emergency pause

• Keeper: Daily maintenance

Gas Optimization and Performance

• Storage Structure Compression: Single-slot data structure (AccountSnapshot) saves gas

• Batch Operation Support: Multi-asset atomic transactions and oracle batch updates

• Cross-Contract Call Optimization: Reduces the number of cross-contract calls

Main Operations Gas Consumption Ranking:
Liquidate (highest) > Borrow > Repay > Supply (lowest)

Security Features

• Reentrancy Protection: Prevents repeated call attacks

• Checks-Effects-Interactions Pattern: Check first, then update, and finally interact externally

• Overflow Protection: Built-in with Solidity 0.8+ and SafeMath dual-layer defense

• Access Control: Role-based and decorator-based permission verification

• Event Logging: All operations are traceable

Tron Comments

BlockStreet's advantages lie in: its dual-engine architecture of "lending protocol + tokenized asset aggregation layer," building a unified ecosystem connecting real-world assets (RWA) and DeFi, providing users with a richer variety of asset types, higher liquidity, and a more transparent price discovery mechanism; at the same time, by connecting multiple issuers and market makers, it reduces market fragmentation and achieves an efficient cross-platform trading experience.

The disadvantages are: its system architecture is complex, with high integration thresholds, relying on multi-party issuance and regulatory collaboration; the compliance risks and liquidation mechanisms of tokenized physical assets still require long-term validation; additionally, in the early stages, the depth of the ecosystem and user scale may limit its overall liquidity and market stability.

# III. Industry Data Analysis

1. Overall Market Performance

1.1. Spot BTC vs ETH Price Trends

BTC

ETH

2. Summary of Hot Sectors

# IV. Macroeconomic Data Review and Key Data Release Points for Next Week

The U.S. government has recently passed a temporary funding bill, ending a 43-day government shutdown, with major federal departments set to restart, and public services and fiscal spending expected to return to normal.

Upcoming releases this week:

November 20: U.S. September CPI data, U.S. September non-farm payrolls

# V. Regulatory Policies

U.S.: Senate Releases Digital Asset Market Structure Draft

From November 11 to 12, the U.S. Senate released a new discussion draft on digital asset market structure, aiming to clarify a long-term regulatory framework.

• Regulatory Authority Division: The bill proposes to assign regulatory jurisdiction over digital commodities (like Bitcoin) to the U.S. Commodity Futures Trading Commission, while the U.S. Securities and Exchange Commission continues to oversee digital assets that are classified as securities.

• Certification Process: A new process is introduced, allowing issuers to certify their digital assets as commodities to the SEC, but this certification is subject to SEC review.

• Stablecoin Treatment: Notably, the draft excludes stablecoins from this framework, which is expected to be regulated by separate legislation.

Brazil: Central Bank Releases New Regulations for Crypto Asset Service Providers

On November 10, the Central Bank of Brazil passed Resolution No. 519, further regulating virtual asset service providers.

• Core Content: The resolution requires virtual asset service providers offering services for foreign exchange and securities trading to apply for authorization from the central bank and brings cryptocurrency activities under a unified regulatory framework for foreign exchange and capital markets.

• Capital Requirements: The new regulations set a capital threshold of approximately $2 million to $7 million for crypto service providers, depending on the type of business.

• Implementation Date: The regulations will officially take effect on February 2, 2025.