Similar to Uniswap, Curve Finance is an Automated Market Maker (AMM) based Decentralised Exchange (DEX). Unlike Uniswap, its main focus is only to swap between assets that are supposed to have the same value. This is useful in the DeFi ecosystem as there are plenty of wrapped tokens and synthetic tokens that aim to mimic the price of the real underlying asset.  For example, one of the biggest pools is 3CRV, which is a stablecoin pool consisting of DAI, USDT, and USDC. Their ratio in the pool will be based on the supply and demand of the market. Depositing a coin with a lesser ratio will yield the user a higher percentage of the pool. As such when the ratio is heavily tilted to one of the coins, it may serve as a good chance to arbitrage. Curve Finance also supports yield-bearing tokens. For example, it collaborated with Yearn Finance to release yUSD pools that consisted of yDAI, yUSDT, yUSDC and yTUSD. Users that participated in this pool will not only have yield from the underlying yield-bearing tokens, but also the swap fees generated by the Curve pool. Including the yield farming rewards in terms of CRV tokens, liquidity providers of the pool actually have three sources of yield. 

DeFi total value locked (TVL) experienced a volatile period in late 2025, peaking at over $172 billion in early October before a sharp correction erased roughly $60 billion by mid-November, leaving TVL at approximately $113 billion amid broader market sell-offs and reduced risk appetite. Ethereum continued to dominate with about $66 billion in TVL, down 7% for the month, while Solana's DeFi ecosystem briefly surpassed $8 billion before contracting by $4 billion in USD terms. Lending protocols drove much of the early growth, with outstanding loans surging 55% in Q3 to a record $41 billion, fueled by innovations in real-world asset (RWA) integration and cross-chain yield optimization. Despite the downturn, DeFi trading volumes hit all-time highs on decentralized exchanges (DEXes) in October, reflecting sustained user activity even as sentiment soured.

Security incidents remained a persistent challenge, though October marked the safest month of the year with hacks totaling just $18 million across three minor exploits. November brought a stark reversal, highlighted by the Balancer V2 pools exploit on November 3, where attackers drained $128 million in a multi-chain vulnerability, causing TVL to plummet 46% to $339 million. Another unnamed DeFi protocol suffered a $50 million breach shortly after, attributed to smart contract flaws in liquidity pools, pushing year-to-date losses beyond $2.8 billion. No major protocol failures or liquidations were reported beyond these, but the events amplified calls for enhanced auditing and insurance mechanisms within the ecosystem.

Regulatory progress was uneven, with U.S. lawmakers delaying the Clarity Act—a key bill for digital asset market structure—until 2026 due to partisan gridlock and a brief government shutdown in early November. The IRS formally revoked proposed broker reporting rules for DeFi platforms in October, easing compliance burdens but leaving gaps in anti-money laundering oversight. Internationally, the European Union's MiCA framework began enforcing stricter DeFi disclosure requirements, while Hong Kong advanced pilot programs for tokenized asset trading. Global watchdogs, including the Financial Stability Board, urged harmonized standards to address cross-border risks, though adoption lagged amid rising institutional interest in compliant DeFi wrappers.

Key protocols showcased resilience and innovation amid the turbulence. Uniswap advanced its "UNIfication" governance proposal on November 10, activating protocol fees for the first time, burning millions of UNI tokens, and consolidating teams to unify incentives—sparking a 5-8% price rally despite overall market weakness. Aave's TVL climbed to $42 billion with the launch of its iOS app on November 17, offering up to 9% yields on stablecoin deposits and entering V4 testnet for enhanced RWA support; the AAVE token rallied 215% in Q3-Q4 before a 27% November pullback. Hyperliquid's HYPE token defied early-month declines with a 6.7% surge to $41 amid staking expansions via Anchorage Digital, but faced pressure from $566 million in unlocks through November, dropping below $50 and exiting the top 20 cryptos. Aster DEX rolled out major upgrades in November, including a hybrid AMM-CEX model boosting daily volumes to $28 billion, a Stage Four airdrop, and a $10 million trading competition to gamify liquidations and enhance token utility. Emerging chains like Cardano saw 29% TVL growth to a three-year high of $297 million, while regional initiatives in Africa and Asia piloted DeFi for remittances using protocols like Aave and Uniswap.