Last Week in DeFi - Optimism Bedrock Live, SEC Sues CEXes, Sturdy Exploit, and More...

Recap: Week of June 5th

Product Launches 🚀

• Optimism Bedrock Live
  Optimism has upgraded to Bedrock. The upgrade enables lower fees, shorter deposit times, and improved modularity & performance.

• SudoSwap V2 Live
  P2P NFT marketplace SudoSwap launches V2. The upgrade brings new features such as on-chain royalties, custom creator settings, EIP-1155 support, etc.

• Raft Finance Live
  Raft Finance, a lending protocol for LSTs, is live. Raft initially supports the stETH market and allows users to borrow R stablecoin against stETH.

• Cryptex V2 Live on Arbitrum
  Cryptex V2 launches on Arbitrum, allowing users to trade perpetual of the crypto market cap with up to 20x leverage.

• SyncSwap Move Live
  zkSync-based DEX SyncSwap launches the Move bridge, enabling USDR and WBTC transfers between Ethereum and zkSync Era.

• Enjin Blockchain Live
  Enjin releases Enjin Blockchain, an NFT-focused L1. Enjin Coin (ENJ) is proposed to migrate from Ethereum to become the native token of the Enjin Blockchain.

• Hubble Exchange Testnet
  Hubble Exchange is building an appchain (Hubblenet) using Avalanche’s subnet-evm repo. Hubblenet focuses on perps trading and had launched the orderbook on testnet.

• Syntehtix V3 Spot Market
  Perps protocol Synthetix has launched the V3 Spot Market on Optimism. A UI prototype is available for trading snxETH markets.

Project Updates 🚩

• SynFutures V2 on zkSync Era
  Derivatives protocol SynFutures launches v2 on zkSync Era, enabling futures and perps trading on the zkSync L2.

• Avalanche Arcad3
  Avalanche introduces the Arcad3 program, aiming to help Web2 gaming companies to build Web3 projects and accelerate growth on Avalanche.

• Uniswap Introduces FLAIR
  Uniswap introduces FLAIR, a new metric to measure intra-pool LP competitiveness in AMMs. The FLAIR metric allows “both existing LPs to measure historical performance and prospective LPs to optimize future capital deployments with backtests.”

• Delorean GNS Yield Market Live
  Arbitrum-based future yield DEX Delorean launches the GNS yield market. Users can sell/buy GNS future yield and/or provide liquidity to earn fees.

• Metronome Live on Optimsim
  Synthetic protocol Metronome is now live on Optimism, allowing users to access smart-farming and looped yield at a low cost.

• SushiSwap Live on ThunderCore
  Sushiswap products including the v3 AMM, BentoBox, Furo, etc., are now live on ThunderCore, an L1 focuses on web3 gaming.

• Astroport Live on Neutron
  Cosmos-based DEX Astroport went live on Neutron, the interchain-secured Cosmos L1. Astroport is currently the only place that supports NTRN trading.

• Polygon zkEVM Network Updates
  Polygon zkEVM completed its mainnet update and has resumed full network service.

Governance Highlights 📝

• Curve Approved wstETH Market
  CurveDAO approved deploying a wstETH market for CrvUSD with a 150m crvUSD debt ceiling.

Regulations 🏛️

• SEC Sues Binance & Coinbase
  The SEC sued Binance and its founder CZ, alleging that they violated securities laws of the US. Binance later published a response to SEC’s complaint.
  Coinbase also got sued for operating as an unregistered exchange and broker, and 13 assets listed on Coinbase were considered crypto asset securities.

• Robinhood to Delist SOL, ADA, and MATIC
  Amid SEC’s regulatory pressure, Robinhood announces that it will “end support for Cardano (ADA), Polygon (MATIC), and Solana (SOL) on June 27th, 2023 at 6:59 PM ET”. Users should sell their holdings before the deadline, or “the company will dispose of the assets at their fair market value.”

• UK to Ban Promotional Incentives
  TheU.K. Financial Conduct Authority (FCA) will prohibit using NFTs or crypto airdrops to promote investing in digital assets. The rules will come into effect on Oct. 8th.

• Crypto.com to Wind Down Serving US Institutional Business
  Singapore-based CEX Crypto.com announced that starting June 21st., it will wind down services for institutional clients in the US.

• TrueUSD Paused TUSD Mints
  TrueUSD paused TUSD mints via Prime Trust, an infrastructure provider of TureUSD. Minting and redemption via TrueUSD remain unaffected.

Hacks/Issues 👾

• Sturdy Exploit
  Leverage farming protocol Sturdy was reportedly exploited and lost ~442ETH (~$800k). The root cause according to 0xArhat is due to a reentrancy vulnerability and oracle manipulation. The hacker was allowed to repeat withdrawals and drain the pool, then inflate the value of their LP tokens, and trade them for more $ETH on Balancer.

• Arbitrum Stopped for An Hour
  Arbitrum stopped processing transactions for about an hour due to a bug found in the batch poster. The bug hit and paused the Sequencer to finalize transaction ordering on-chain. The Arbitrum team has fixed the bug, resumed network operation, and published a post-mortem for the incident.

Upcoming ⏳

• MiCA Into Force
  The MiCA text has been published in the Official Journal of the EU, and the entry into force will be in 20 days, followed by the entry to the application in 1 2/18 months.

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