Last Week in DeFi - Trader Joe Auto-Pools Live, EU MiCA signed, Multichain Back Online(?), and More...

Recap: Week of May 29th

Product Launches 🚀

• Trader Joe Auto-Pools Live
  The Auto-Pools automate the process of liquidity balancing within Trader Joe’s Liquidity Book Pools. Auto-Pools charge a 4.5% automation fee. There are two pools available: AVAX-USDC on Avalanche, and ETH-USDC on Arbitrum and there is currently a snapshot for a “pool party” mint.

• Y2K v2 Live
  Stablecoin insurance protocol Y2K launches v2. The upgrade brings UX improvements, expanded flexibility for oracles & depositable assets, new revenue streams for the $vlY2K holders, and Builder Platform codebase access for devs.

• Tai.money Live
  Tai.money, a version of Reflexer’s RAI that supports LSDs as collateral, is live. Users can now borrow TAI against their ETH, wstETH, rETH, cbETH, and RAI; also users can LP for the protocol to earn rewards.

• Cat-in-a-Box v1.1

  Cat-in-a-box, a lending protocol for yield-bearing assets, launches a spinoff version of the protocol. The version offers boosted yields for maintaining riskier CDPs.

• FDUSD Live on BnB Chain
  First Digital, a licensed HK-based firm launches the USD-pegged stablecoin FDUSD on the BnB Chain.

• One Click DAOs
  A new project on Aragon called Libree allows users to quickly and easily create Investment DAOs. Users can easily create asset management strategies and assign permissions to wallets managing funds.

• Oracle Chain on Cosmos
  Agamotto, a Cosmos chain focused on providing price feeds, has launched. It aims to provide manipulation-resistant price feeds for assets on Cosmos.

• RouterChain Testnet Live
  Router protocol, a Cosmos-based L1 for interoperable dApps (iDapps), launches its alpha testnet. Router plans to launch an incentivized public testnet and onboard more devs, validators, and testers in June.

• Pancake Protectors Live
  PancakeSwap launches Protectors, a PvP game that adds utility to the CAKE tokens, Pancake Bunnies, and Squads.

Project Updates 🚩

• EU MiCA Signed
  The European Parliament has officially signed the MiCA law proposed to regulate crypto assets and service providers. There will be a publication of the law, followed by the entry into force 20 days after that, and entry into application 12 months & 18 months later.

• tBTC Live on Arbitrum
  tBTC, a BTC token on Ethereum, is now available on Arbitrum. Using Wormhole, the tBTC on Arbitrum will refer to canonical tBTC minted on the Ethereum mainnet, preventing liquidity fragmentation. Liquidity will initially be in Balancer and Curve pools.

• MIM LayerZero Integration
  Abracadabra integrates LayerZero and implemented the Omnichain Fungible Token (OFT) standard to its stablecoin MIM. MIM is now an omnistable that can be natively integrated into projects currently building on top of LayerZero.

• RocketPool on zkSync
  Rocket Pool has been deployed on zkSync Era, making it cheaper and faster to use rETH in dApps on zkSync Era.

• Miladies on Bitcoin
  Miladies NFTs can now be bridged to Bitcoin, although apparently it is a one-way operation and they cannot be bridged back.

• Injective Avalon Upgrade
  Injective completes the Avalon upgrade, improving network performance with scalability optimizations, PoS validation revamps, and faster block times on mainnet.

• TriCrypto Next Generation
  A new version of Tricrypto has been deployed and is pending a few DAO votes to be active on the UI. Tricrypto-NG uses much less gas - a boon on Ethereum mainnet - and also uses a “more Solid” price oracle.

• Worldcoin Integrates Safe
  UBI protocol Worldcoin integrates with Safe to offer account abstraction to its users. World App users receive a Safe-powered smart contract wallet deployed on Polygon.

• Cian ETH Mainnet Flagship
  Liquid staking automation protocol Cian launches ETH Mainnet Flagship, a yield vault for LSTs. The vault and uses Lido, Aave, Morpho, and Balancer to generate delta-neutral yields on LSTs.

Governance Highlights 📝

• UniswapDAO Voted Against Protocol Fees
  The Uniswap DAO voted for zero protocol fees on GFX Lab’s fee switch proposal. Uniswap's executive director tweeted that the vote is only for gathering feedback and the DAO “will use the polling data to propose a formal Temperate Check”.

• Stargate to Disable Fantom Pools
  Stargate governance approved disabling the Fantom pools and pathways. The windup is to prevent potential risks caused by the Multichain situation, which “creates a lack of clarity around what is happening with Multichain and the stability of anyUSDC, Fantom’s primary USDC asset.”

Hacks/Issues 👾

• Atomic Wallet Exploits
  Users of Atomic Wallet, a noncustodial hot wallet provider, have been reporting fund losses and by far the total drained amount is around $35m. The hacker(s) are reported to exploit Atomic’s infrastructure and gain unauthorized access to users' wallets.

• unshETH Private Key Leak
  One of the unshETH deployer’s private keys was compromised and some USH farm rewards and protocol liquidity were compromised. The team paused withdrawals on unshETH Ether and is negotiating with the hackers for a return of lost funds worth 375k. User-deposited funds are safe and unaffected.

• Multichain Situation Updates
  The Multichain team loses contact with the cofounder and cannot access servers for maintenance, thus several chains are affected and must stop calling Multichain’s smart contracts.

  On Monday, according to users in the Multichain group and Twitter users 0xScoope, and 0xBobie, several affected bridges including Zksync Era/Kava EVM/Avax cross-chain bridge seem to be back in operation.

Upcoming ⏳

• Optimism Bedrock Upgrade
  Optimism’s mainnet upgrade to Bedrock is set for June 6, 2023, at 16:00 UTC. Optimsim-based protocols including Kwenta and Lyra will be shut down in preparation for the upgrade.

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