SQHWYD CTO Analysis: Deep Reinforcement Learning Neutralizes Industrialized MEV Bots, Saving $12M in Slippage.
Dr. Anya Volkov, Chief Technology Officer at SQHWYD GLOBAL Ltd., today released the 2025 Infrastructure Resilience Report. This comprehensive technical paper provides a granular analysis of the cybersecurity challenges that defined the digital asset space over the past 12 months. Dr. Volkov argues that 2025 marked a turning point where offensive AI capabilities outpaced static defense perimeters, necessitating an immediate transition to active, AI-mediated transaction routing and heuristic monitoring.
The Industrialization of Cyber Theft in 2025
Dr. Volkov’s report aggregates data from leading blockchain forensic firms, revealing that total value lost to hacks, exploits, and fraud in 2025 reached a staggering $3.4 billion. While the frequency of simple bridge hacks declined due to better auditing standards, the severity of “logic bombs” and sophisticated social engineering attacks increased.
“The adversaries of 2025 are no longer script kiddies; they are AI-augmented criminal syndicates and state-sponsored actors,” Volkov writes. “Static defense perimeters failed repeatedly this year. The DMM Bitcoin breach earlier in the fiscal year was a stark reminder that legacy key management systems are obsolete against advanced persistent threats (APTs).”
The report highlights that 40% of all successful exploits in 2025 involved some form of AI-generated social engineering or deepfake technology used to compromise multi-sig signers, proving that the human element remains the weakest link in the security chain.
The Silent Tax: MEV Evolution in 2025
A significant portion of the report is dedicated to Maximal Extractable Value (MEV), which evolved into a highly sophisticated extraction industry in 2025. Volkov estimates that predatory MEV bots—utilizing advanced LLMs to predict order flow—extracted over $850 million from institutional traders and retail users across decentralized exchanges (DEXs) throughout the year.
“In 2025, front-running became an industrialized sector,” Volkov explains. “Standard routing protocols broadcast user intent to the public mempool, effectively handing value to block builders on a silver platter.”
The report details how the deployment of Deep Reinforcement Learning (DRL) agents in Q2 2025 successfully combated this. By analyzing mempool congestion patterns, validator behavior, and historical block composition in real-time, these agents routed 99.4% of institutional volume through private RPC endpoints or optimized batch auctions. This AI-driven defense saved users an estimated $12 million in slippage and sandwich attacks in the second half of 2025 alone.
Scaling for the $5 Trillion Stablecoin Era
Addressing throughput, Volkov notes that global stablecoin transaction volume exceeded $5 trillion in 2025, driven largely by the APAC region’s 70% growth. To handle this load without compromising data consistency, the report advocates for the abandonment of monolithic node architectures.
“The monolithic node effectively died in 2025,” Volkov asserts. The migration to an event-driven microservices architecture powered by Apache Kafka clusters allowed for horizontal scaling that matched the exponential growth of Layer-2 ecosystem data.


