Hyperliquid Just Made a Direct Move on Polymarket's Core Function

Hi! In today’s edition:

• 🔮 Hyperliquid quietly moved into territory that Polymarket and Kalshi have owned, and the architecture of how it works changes what trustworthy resolution looks like

• 🔐 An EIP being pitched for Ethereum's next major upgrade would make private transfers something every wallet can do without third-party tools

• 🕷️ A new malware campaign is targeting the people who write the code behind Solana, Sui, Aptos, and a long list of crypto wallets

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Hyperliquid Launches Canonical Prediction Markets With Validator-Driven Settlement

Hyperliquid expanded its HIP-4 outcome market system Tuesday to support prediction-style contracts tied to offchain events, with validators rather than external oracles handling deployment and settlement.

Markets are now published by automated newsfeed software that validators run as part of regular chain operations. Validators vote on which markets get deployed and how they settle, evaluating each on "unambiguous rules, correctness, and subjective quality of the market." The structure replaces the external oracle dependency that platforms like Polymarket rely on through UMA.

The first canonical offchain market is "May CPI year-over-year," which had recorded about $11,268 in volume at last check. Outcome contracts are fully collateralized, no leverage, settling at either 1 USDC or 0 USDC. HYPE was trading near $60 after sliding 3.5% on the day.

Facet's Tom Lehman Pitches EIP-8182 to Make Private Transfers Native to Ethereum

Tom Lehman, co-founder of Layer 2 network Facet, pitched EIP-8182 Friday for inclusion in Ethereum's upcoming Hegota upgrade, arguing for a protocol-managed shielded pool to bring native private ETH and ERC-20 transfers to the base layer.

The proposal calls for a system contract at a fixed address using a UTXO-based design with no admin key, proxy, or pause mechanism. Spends would be verified via a fork-managed Groth16 BN254 proof. Transfers work to any existing Ethereum address or ENS name with no privacy-specific format required.

EIP-8182, first introduced in March, joins EIP-8141 (privacy pool fees) and EIP-8250 (keyed nonces) in Hegota's privacy stack. Fewer than 1 in 10,000 Ethereum transactions were private in 2025.

TrapDoor Malware Targets Crypto Developer Environments Across npm, PyPI, and Crates.io

Socket Security flagged a malware campaign Sunday targeting crypto developer environments tied to Aptos, Sui, and Solana, with more than 34 malicious packages and 384 versions identified across npm, PyPI, and Crates.io.

Dubbed TrapDoor, the campaign uses post-install hooks, Python import triggers, and Rust build.rs scripts to steal SSH keys, wallet keystores, AWS credentials, GitHub tokens, browser login databases, and crypto-wallet extension data. The attack began May 22 at 20:20 UTC with the PyPI package eth-security-auditor.

The npm payload, a 1,149-line file called trap-core.js, validates stolen credentials via live API calls. Persistence is established through systemd, cron, Git hooks, and modified .cursorrules and CLAUDE.md files targeting AI coding assistants. SlowMist issued a separate emergency warning.

🔔Today on Unchained on Air 📣

🏙️ DEX in the City

Trump killed his AI testing executive order hours before the signing ceremony — after last-minute calls from Musk, Zuckerberg, and Sacks.

Katherine Kirkpatrick Bos, Jessi Brooks, and Vy Le dig into that, plus the new Polymarket/Nasdaq deal and the NYT's pushback on prediction markets, and what a new Fed master account executive order means for crypto.

📢 Unchained Livestream

Researcher departures from the Ethereum Foundation have rattled the community just as Vitalik published his CROPS framework, shrinking the EF's mandate to censorship resistance, open source, privacy, and security, and declared ETH itself "the most high-value product of the Ethereum blockchain."

Zak Cole, who launched the Ethereum Community Foundation to fill the gap, and Greg Markou, co-founder of Chainsafe and Sprinter, join Laura to debate what the EF's retreat means for Ethereum's development and direction.

Tune in Today from 12:00 pm ET.

Join us on X, YouTube or PumpFun.

• 🕊️ Nathan Allman, founder and CEO of Ondo Finance, has passed away unexpectedly. Allman founded Ondo in 2021 after working on Goldman Sachs' digital assets team and built it into one of the leading tokenized real-world asset platforms, with $3.5 billion in total value locked and products spanning tokenized Treasuries, equities, and the USDY stablecoin. President Ian De Bode, formerly head of digital assets at McKinsey, has assumed the role of CEO.

• 🇮🇩 Indonesia blocked Polymarket, classifying the prediction market as online gambling in disguise after a contract allowing users to bet on whether President Prabowo Subianto would leave office early drew $46,000 in volume. The Ministry of Communication and Digital Affairs is also tracing affiliated social media accounts, extending the Asian crackdown that has seen India block both Polymarket and Kalshi earlier this month.

• ⚙️ OKX's X Layer launched Exchange OS, a protocol upgrade that moves core exchange functions — matching, settlement, liquidation, and risk management — to the blockchain layer, allowing developers to deploy custom spot, perpetual, and outcome markets. The first venue launches in June with simulated 2026 FIFA World Cup outcome markets, with broader ecosystem access planned for Q3 through an OKB staking requirement.

• 🔓 Squid distanced itself from a $3.2 million exploit that drained 86 Gnosis Safe wallets across Ethereum and Base in roughly two hours, saying it neither built nor deployed the compromised "SquidRouterModule" contract. The attacker swapped stolen tokens into approximately $3.07 million in DAI through attacker-controlled Uniswap V3 pools, with initial funding traced to Tornado Cash.

• 🇬🇪 Tether will launch GEL₮, an official stablecoin pegged to the Georgian lari, with backing from the Government of Georgia and the National Bank of Georgia under a purpose-built regulatory framework. The partnership marks one of the first joint efforts between a national government and a private stablecoin issuer to place a sovereign currency directly onto blockchain rails, as Georgia positions itself as a regional crypto hub aligned with U.S. regulations.

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