Weekly Hot Project Updates: Sui Network experiences two consecutive days of downtime, Base launches ZK upgrade, Aave proposes standardization of asset listings, etc. (0524–0530)

1. Sui Mainnet Experiences Major Outage for Two Consecutive Days link

Sui officials state that the mainnet has experienced a fault, and on-chain activity may be paused. The core team is investigating and will publish a post-mortem. Previously, on May 28, the Sui mainnet had a block production halt and transaction suspension caused by validator layer issues, which recovered after several hours. Sui Status shows that the Sui mainnet has had major outages for two consecutive days, with the problem originating from mainnet settlement. The explorer shows no blocks have been produced for over an hour.

Sui states that the mainnet has resumed operation, and both this and the previous downtime are related to the interaction between the Address Balances feature and Gas billing logic introduced in version 1.72. A temporary fix deployed earlier has a known, extremely low probability of causing a shutdown.

Sui indicates that due to issues during epoch transition, the Sui mainnet has currently stopped accepting user transactions. Validator nodes are still running and generating system transactions, but user transactions cannot be accepted by the network for now. The Sui Core team is investigating the cause and will announce updates later.

2. Hyperliquid Announces Launch of Official Prediction Market Based on Off-Chain Events link

Hyperliquid announces that it now supports an official prediction market based on off-chain events. These markets are published by validator-operated automated news source software, with validators voting on deployment and settlement based on whether rules are clear, results are accurate, and market quality is subjective.

3. Layer 2 Network Base Announces Mainnet Launch of Azul Upgrade link

Layer 2 network Base announces the mainnet launch of the Azul upgrade, which introduces a Multiproof mechanism combining TEE and zero-knowledge proofs (ZK) to enhance network decentralization and shorten withdrawal confirmation times. Base states that the new client architecture has reduced empty block counts by approximately 99% and supports multiple peaks of 5000 TPS load. As of the end of May, Base’s TVL is about $4.4 billion.

4. Arbitrum Foundation Proposes $43.5 Million Funding Request for 2027 Operations link

The Arbitrum Foundation submitted a new funding proposal to the Arbitrum DAO, seeking $16 million in stablecoins, 1,740 ETH, and 230 million ARB tokens, totaling approximately $43.5 million. The funds will support the foundation’s operations through 2027, including technical infrastructure, ecosystem development, marketing, and governance support. The 230 million ARB tokens account for about 3.7% of the total supply, while Arbitrum DAO’s 2025 revenue is approximately $23.49 million. The proposal is still under governance discussion.

5. Polymarket Promotes KYC for Traders to Address Regulatory and Sanction Risks link

According to The Information, prediction market Polymarket is pushing traders to undergo identity verification (KYC) to mitigate regulatory, sanctions, and potential legal risks. Some users still participate in restricted markets via automated trading bots and have formed gray pathways in regions like Russia; some developers are also guiding traffic through tools like Telegram.

In response to market rumors that Polymarket is requiring KYC due to sanctions and legal risks, Polymarket’s Josh Stevens responded that these claims are false. He stated that Polymarket is launching a new beta product, available only to select users, with KYC requirements only during this testing phase. The existing Polymarket platform will not implement new KYC requirements, and after testing, the product will be usable without KYC.

6. Ondo Finance Founder Nathan Allman Passes Away Unexpectedly, Ian De Bode Takes Over as CEO link

RWA project Ondo Finance announced that its founder, Nathan Allman, has unexpectedly died. The announcement states that Nathan’s vision, humility, and execution shaped Ondo’s development, and his commitment to building a more open and inclusive financial system will continue. Ondo also announced that Ian De Bode, who has served as President overseeing strategy and daily operations for over two years, will succeed as CEO.

7. Socket Discloses TrapDoor Supply Chain Attack Involving npm, PyPI, and Crates.io link

Socket’s research team published a report revealing the active cryptojacking supply chain attack called TrapDoor, which spans npm, PyPI, and Crates.io. It involves over 34 malicious packages and more than 384 related versions and artifacts, targeting crypto, DeFi, Solana, Sui, Move, and AI developers. Socket states that these malicious packages can steal developer keys, crypto wallets, SSH keys, cloud credentials, browser data, environment variables, and API keys, executing via npm postinstall hooks, PyPI import scripts running remote JavaScript, and Crates.io build scripts.

8. Yuga Labs to Restructure ApeCoin Organization, Cam Resigns as Head of ApeCo link

Yuga Labs CEO Michael Figge tweeted that they will restructure ApeCoin to reduce coordination costs between Yuga Labs and ApeCo (formerly Ape Foundation) and reset the organization. Cam, the head of ApeCo, will step down, and the core ApeChain technical and business development teams will work directly with Yuga. Some members of ApeCo will leave, with the transition expected to complete by June 5.

9. Aave Labs Proposes Adoption of Standardized Technical Asset Listing Framework link

Aave Labs released an ARFC proposal suggesting the adoption of a standardized technical asset listing framework for new asset onboarding, continued listing, and major parameter updates across Aave V3, V4, and Horizon. The framework aims to unify technical requirements, improve consistency, transparency, and repeatability in governance proposals, and establish ongoing monitoring benchmarks. It covers ERC20 compatibility, oracles, access control, minting/burning, pause/blacklist, upgradeability, yield mechanisms, token architecture, cross-chain bridge risks, audit/security history, external dependencies, and composability. Technical findings should translate into clear governance and risk management outcomes, such as lowering supply caps, borrowing limits, LTV, banning collateral types, increasing monitoring, issuer rectification, periodic assessments, or delaying listings or expansions.

10. Vitalik Praises Privacy Protocol Interfold, Says It Realizes Long-Standing MACI Vision link

Ethereum co-founder Vitalik Buterin posted that more people should learn about the Interfold protocol. He noted that it essentially realizes his nearly decade-long vision of building infrastructure based on the Minimal Anti-Collusion Infrastructure (MACI) concept, presented in a more general form. Interfold is a privacy protocol optimized for voting and anonymous auctions, which generates threshold encryption keys allowing users to submit votes on-chain and prove eligibility via zero-knowledge proofs (ZKP).