Last Week in DeFi - InsurAce V2, Scroll L2 Mainnet, FTX Exploiter Attacks, Frax V3 Soon, and More...

Recap: Week of Oct 2nd

Product Launches 🚀

• InsurAce V2 Live
  InsurAce launches V2, enabling veINSUR, NFT staking, gauge mechanism, and new tokenomics.

• Scroll L2 Mainnet
  Native zkEVM L2 Scroll produces the genesis block for the mainnet. Scroll is live for builders.

• MEV Protocol Live
  Manifold launches MEV Protocol on Ethereum. The protocol's MEV auction system permits multiple winners per auction slot. MEV protocol will integrate mevETH, an LST launched by Manifold.

• Untangled Live on Celo
  RWA marketplace Untangled Finance went live Wednesday on the Celo network after securing $13.5M funding to bring tokenized private credit on chain.

• Perennial V2 on Arbitrum
  Arbitrum-based derivatives AMM Perennial launches V2 with a faster oracle, cheaper fees, deeper liquidity, and improved risk management.

• Armada Live on Solana
  Token liquidity management protocol Armada went live on Solana.
  Armada provides tools for DAOs to launch and manage token liquidity, including initial token distribution, liquidity, price discovery, and protocol reward management.

• TProtocol USTP
  RWA project TProtocol launches USTP, a stablecoin backed by US treasury yield. USTP has three types that meet the different needs of investors: rUSTP, iUSTP, and Standard USTP.

• VNX on Avalanche
  RWA protocol VNX launches VEUR and VCHF on Avalanche, allowing users to access European fiat currencies on-chain.

• Vertex Margin Manager
  Arbitrum DEX Vertex launches Margin Manager, an all-in-one tool to manage cross-margin accounts and positions.

• ShimmerEVM Chain Live
  ShimmerEVM chain, an IOTA staging network with its SMR token, is live to the public. Devs can develop and implement their products on Shimmer first, before launching on IOTA.

• TangleSwap Live on ShimmerEVM
  TangleSwap, a multi-chain CLMM DEX on ShimmerEVM, is live with swapping and LPing available.

Project Updates 🚩

• Matcha Limit Order Upgrades
  Matcha DEX releases limit order upgrades. New features include more control over trade rates, trade shortcuts, duplicate limit orders, and order batch cancellations.

• Stella Penpie Integration
  Stella integrates with Penpie to enable 10x leverage on LST on Penpie’s boosted Pendle pools on Arbitrum.

• Inverse INV Market
  Inverse reopens the lending market for INV with boosted safety with personal collateral escrows, PPO’s, Curve EMA oracle, and real yield for staking.

• Pirex ETH Live on Testnet
  Redacted Cartel launches Pirex ETH (pxETH) on testnet. pxETH plays a key part in the upcoming Dinero (stablecoin) launch, and it will provide yield opportunities on mainnet.

• Synthetix Perps v3 Trading Competition
  The Syntehtix Perps V3 Testnet Trading Competition is live on Base testnet. It started on October 2nd, at 5 pm UTC, and will conclude on October 23rd at midnight UTC.

• Introducing zkUniswap
  Dev Diego introduces zkUniswap, the first zkAMM that uses a zk co-processor to offload the computation of swaps.

Governance Highlights 📜

• Proposal: Lido Simple DVT
  The Lido community proposes to approve the addition of the Simple DVT module, a new module that utilizes Distributed Validator Technology (DVT) on Ethereum via Obol Network and SSV Network implementations.

• Proposal: STRD ATOM Conversion
  Liquid staking protocol Stride proposed to merge with Cosmos Hub during the Cosmoverse conference. The proposal suggests converting the STRD token and using ATOM as protocol tokens and incentives.

• Approved: Autonomous Olympus 2.0
  OlympusDAO is running a vote to accelerate the automation of Olympus. The proposal aims to speed up DAO automation and adjust 2023 projects for the Cooler Loans launch, emphasizing decentralization and automation in operations.

Regulations 🏛️

• Grayscale Filed for Spot ETH ETF
  Grayscale and NYSE Arca have filed Form 19b-4 with the SEC to convert Grayscale Ethereum Trust $ETHE to a spot Ethereum ETF.

• BTC Spot ETFs Incoming?
  According to ETF analyst Eric Balchunas, “SEC delayed spot bitcoin filings last week they also sent the issuers comments to address re their S-1 filings”, which could be a positive sign for approvals.

• ETH Futures ETFs Live
  On Monday, 9 new ETH futures ETF products by ProShare, VenEck, Bitwise, etc., arrived on the market. Of these funds only five hold exclusively Ether futures, while the other four track a mixture of Bitcoin and ETH futures contracts.

Hacks/Issues 👾

• FTX-Exploiter Attacks
  The FTX-associated address has been moving funds through DeFi and attacked protocols including Threshold, Thorswap, and Stars Arena.
  Threshold user funds remain safe, and the team will need to upgrade the tBTC redemption mechanism to fix the 0-day exploit.
  The Thorswap team has paused swaps after the FTX exploiter moved $37m funds through ThorSwap. The team will be working with a security firm to perform address screening.
  Stars Arena's $3M worth of AVAX tokens were drained, leaving Stars Arena with just under $1 in funds after the attacker. Funds have been moved to a multisig and the protocol is currently down for maintenance.

• Galxe 400K DNS Attack

  Galxe lost 400k in user funds from a recent frontend DNS attack. The website is now back live and Galxe promised to refund 110% to affected users.

• Goldfinch 20M Loan Default
  RWA platform Goldfinch faces a 20M loan default from a US-based credit fund. Warbler Labs will backstop all losses related to these investments for the Senior Pool and Backers.

• BigWhale 1.5M Exploit
  BnB Chain-based staking protocol BigWhale lost ~$1.5M after a private key compromise. BigWhale’s auditor Certik previously pointed out the risk in the audit report. However, the issue was left unresolved.

• HTX 8M Funds Returned
  HTX was hacked and lost 5,000 ETH (~$8M) last week. The hacker accepted the 250 ETH white hack bounty and returned the stolen funds.

• Yield Protocol to Wind Down
  Yield protocol will wind down operations on Dec 31st. Due to regulatory challenges, the decision arises from the lack of sustainable demand for fixed-rate borrowing on the platform.

Upcoming ⏳

• Frax V3, frxETH V2, Fraxchain
  Frax will launch V3 with scalable RWAs, followed by the launch of frxETH V2 and Fraxchin.

• Morpho Blue

  Morpho introduces Morpho Blue, a new product that will allow users to create isolated lending markets by specifying any loan asset, any collateral asset, a liquidation LTV (LLTV), an oracle, and an interest rate model.

• Native BTC on Cosmos
  nBTC, an IBC-compatible token issued by the Nomic chain, will launch on Osmosis. nBTC will allow users to bring their BTC into Cosmos without converting it into another cryptocurrency.

• Solana Kamino Lend
  Solana-based DEX Kamino introduces Kamino Lend, an upcoming lending product that will increase capital efficiency with a unified liquidity market and the Elevation Mode (eMode).

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