The cryptocurrency world continues to experience significant events related to regulation, new projects, and user compensation. In this review, we will discuss Terraform Labs’ compensation plans, Hyperliquid’s decision on the JELLYJELLY token, the launch of a new stablecoin by Sonic Labs, and the expansion of the DeFi protocol Dolomite.
Terraform Labs to Begin Accepting Compensation Claims for LUNA and UST Collapse
Terraform Labs has announced that it will start accepting compensation claims from users affected by the LUNA and UST ecosystem collapse. Applications can be submitted starting March 31, 2025.
In 2022, the algorithmic stablecoin UST lost its peg to the dollar, leading to the collapse of the entire Terra ecosystem. As a result, millions of users worldwide lost their savings. The compensation program aims to partially restore fairness and rebuild trust in the industry.
Currently, it remains unclear which categories of users will qualify for payouts and the exact compensation amounts. Terraform Labs has yet to disclose full details but promises to implement a transparent fund distribution mechanism.
Hyperliquid Delists JELLYJELLY and Compensates Users
The cryptocurrency exchange Hyperliquid has announced the delisting of the JELLYJELLY token and will provide $700,000 in compensation** to affected users. This decision follows an attack by a whale on the protocol, which momentarily put the DEX at risk of losing up to $240 million.
The attack exploited a vulnerability in the liquidity mechanism, causing sharp price fluctuations and significant losses for token holders. The Hyperliquid team took immediate action to mitigate the damage and temporarily suspended JELLYJELLY trading before ultimately deciding to delist the token.
Compensation will be provided to users who suffered losses due to the token’s price instability. Hyperliquid representatives emphasized that their priority is protecting users’ interests and preventing similar incidents in the future.
Sonic Labs Adjusts Plans for Algorithmic Stablecoin Launch
The Sonic Labs project has abandoned its initial plan to launch a traditional dollar-backed algorithmic stablecoin in favor of a new product: the “mathematically constrained numerical dirham.” The company’s head, Andre Cronje, announced this shift.
According to Cronje, the new asset will not be pegged to the U.S. dollar, making it a unique alternative to existing stablecoins. The decision to alter the project’s direction was influenced by the STABLE Act draft bill in the U.S., which proposes a two-year moratorium on launching new endogenously collateralized assets.
Interestingly, the UAE government has also announced plans to introduce a blockchain-based version of the national currency—the dirham—by the end of 2025. It is currently unclear whether Sonic Labs is involved in this initiative.
Cronje stated that the project’s technical foundation is nearly complete, and the team is now focused on scaling the system before its full launch. This new model could provide an alternative to traditional stablecoins and reduce dependency on the U.S. dollar in crypto transactions.
DeFi Protocol Dolomite Expands into Bitcoin Ecosystem
The Bitcoin ecosystem continues to grow as the Dolomite decentralized financial platform integrates with it. Dolomite now supports Bitcoin deposits using the EVM-compatible Layer 2 solution Spiderchain developed by Botanix Labs.
Dolomite offers money market and decentralized exchange (DEX) services, with over $800 million locked in its smart contracts. The developers have announced plans to integrate with projects such as Chainlink, Ankr, and Graph Protocol, which are already operating within the Botanix network.
Additionally, Botanix Labs continues to develop its mainnet after successfully launching the Aragog testnet in December 2024. The protocol utilizes innovative technologies, including FROST (Flexible Round-Optimized Schnorr Threshold)—a multi-signature cryptographic system that enhances security and simplifies key management.
The past week has brought several key developments to the crypto industry:
– Terraform Labs is preparing compensation payouts for users affected by the LUNA and UST collapse.
– Hyperliquid has taken action after an attack on JELLYJELLY, allocating $700,000 for user compensation.
– Sonic Labs has abandoned the traditional algorithmic stablecoin model in favor of a new mathematical approach.
– Dolomite is expanding its functionality, integrating with Bitcoin through Layer 2 solutions.
These events highlight the ongoing evolution of the crypto market, despite regulatory challenges and technological hurdles. The coming months will reveal how these initiatives impact the broader blockchain ecosystem.
