Last Week in DeFi - Curve Stablepool Exploits, US Advances Crypto Regulation, Arbitrum Odyssey Returning, and More...

Jul 31, 2023

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Product Launches 🚀

Optimism L2 PGN Live
Public Good Network(PGN), an L2 OP chain for funding public goods, is live. PGN enables devs to generate funding for public goods by running dApps on PGN and users get an affordable alternative to the Ethereum mainnet.
tBTC V2 Redemptions Live
BTC bridging protocol Threshold launches tBTC V2 redemptions. Users can now able to redeem their tBTC back to native BTC.
Rysk Options Trading Live
Arbitrum-based options protocol Rysk has enabled ETH options trading after the liquidity bootstrapping phase.
Y2K Depeg Vaults
Y2K finance launches Depeg vaults with initial support for MAI and MIM. Users are able to predict directions via "ABOVE" or "BELOW" strikes on stablecoin pegs.
Factor V2 Live on Arbitrum
Arbitrum-based yield protocol Factor launched V2 with initial strategies for TradeJoe, Mux, and GMX vaults. Factor launches v2 staking rewards.
Thena Alpha ob BnB Chain
BnB Chain-based DEX Thena.fi launches its perp trading platform Alpha. Alpha supports 100 assets with up to 40x leverage and has zero funding rates.
Alpha is in its early stage and is only open for whitelisted addresses.

Avalanche to Invests in RWA
Avalanche Foundation introduces Vista, a program to allocate $50m to purchase tokenized assets minted on the Avalanche blockchain. Assets could be equity, credit, real estate, commodities, as well as those that are blockchain-native.
Conic Received 1m Funding
Curve yield protocol Conic has raised $1m from Curve founder Michael Egorov. Conic was recently exploited. Conic omnipools was previously exploited.
Gravita Live on Arbitrum
LST lending protocol Gravita expands to Arbitrum, enabling low-cost borrowing on its LST-backed stablecoin GRAI.
LUSD on Polygon zkEVM
Liquity launches LUSD on Polygon zkEVM.
Connext xERC20
Connext introduces the xERC20, a cross-chain token standard that allows token issuers to manage bridges, set minting limits, and let selected bridges mint identical tokens.
Avail opEVM
Modular blockchain Avail launches the Optimistic Ethereum Virtual Machine (OpEVM) SDK, allowing devs to build EVM-compatible optimistic rollups.
Gamma on Ramses
Liquidity management protocol Gamma Strategy launches on Ramses exchange, offering yield strategies for Ramses LPs.
Shibarium Beta Bridge Live
Shibarium L2 launches testnet bridge to the public. The Shibairum mainnet is expected to launch in August.

Passed: Parrot Token Redemption
Solana-based lending protocol Parrot was running a vote to enable PRT redemption and to transit Parrot to a no-token protocol by declaring the PRT token nullified.
The vote passes and the team will begin implementing an activist investor-led plan to phase out the platform’s PRT token, with redemptions set to begin as early as Monday.
Passed: Maker to Enhance DSR
Maker governance passed the poll to implement EDSR Via GOV12.1.2. The The EDSR is determined based on the DSR and will temporarily increase the effective DSR available to users up to 8% max in the early bootstrapping stage when DSR utilization is low.
Passed: Ribbon Aevo Merger
The vote to merge Ribbon into Aevo has passed.
Proposal: Lido stETH Dual Governance
Lido is pushing for a dual governance model. The new model aims to grant stETH holders veto power over the DAO's governance decisions. The proposal was first proposed in June and has yet to move behind discussion to a vote.

US Advances Crypto Regulation
Last Thursday, the “Financial Innovation and Technology for the 21^st Century Act (FIT21 Act)”, a bill that provides a regulatory framework for digital asset and trading service providers, is passed by two House committees (Financial Service & Agriculture) and is now ready for consideration by the full House.
The Clarity for Payments Stablecoin Bill, a bill to better regulate stablecoin issuers, is passed by the Financial Service Committee and will undergo further review.
The US Senate passes the 2024 NDAA amendment, which included a provision that requires new anti-money laundering guidelines, including crypto-focused provisions
Quantstamp Charged by SEC
Blockchain security firm Quantstamp is charged by SEC for conducting an unregistered ICO. Quantstamp settled without admitting or denying the SEC’s charges and will have to pay 3.4m.

Curve Stablepool Exploits
A number of Curve stable pools using Vyper (a coding language) are exploited as certain versions of Vyper are vulnerable to reentrancy attacks. The affected pools include alETH/msETH/pETH/Crv pools and potentially Arbitrum’s tryicrypto pool, with an estimated total loss of ~$70m. All pools were drained or white-hacked so the situation seems stable now.
Affected protocols include Alchemix, Metronome, JPEG'd, and Ellipsis.
A white-hacker c0ffeebabe has returned 2,879 ETH (~$5.4m) to Curve.
zkSync EraLend Hacked
zkSync Era-based lending protocol EraLend was exploited and lost ~2.76m due to a re-entrancy attack. The team has temporarily paused borrowing, USDC supply, and SyncSwap LP supply while investigating and tracing the lost funds.

Arbitrum Odyssey Returning
Arbitrum community is relaunching Odyssey 2.0 to support the ecosystem. Around August, users will be able to engage with projects including SpartaDEX, GMX, Dopex, Alchemix, FactorDAO, PlutusDAO, etc. to earn rewards.
Evmos 2.0
Evmos is launching 2.0 on Aug 2. The new version will enable StakeFi & IBC composability, improved tokenomics, and software licensing.

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