🔒Aave Freezes Assets To Guard Against Security Vulnerability
The top DeFi lending protocol, Aave, froze many of its markets after identifying a security vulnerability affecting pools offering fixed-interest borrowing. AAVE holders are now voting on a governance proposal to resume normal operations in roughly one week.
Arbitrum governance backed a proposal to introduce a staking mechanism for ARB holders. Voting is also ongoing for a closely contested proposal pushing for the launch of an "Arbitrum Coalition" tasked with research and development.
Bank of England published stablecoin regulation set to take effect next year. Stablecoin issuers will be subject to the central bank's oversight and will need permission to operate in the U.K.
A new NFT collection inspired by a Simpsons episode parodying the non-fungibles sector quickly sold out. The NFTs cost $19 each to mint and are now trading at a $300 floor price.
Cardano announced it will adopt Polkadot's Substrate technology to underpin its upcoming "partner chain" initiative, Input Output Global. The pivot seeks to revamp Cardano from single chain into an ecosystem of multiple networks.
Multiple attendees of Yuga Labs' ApeFest conference reported suffering burns to their skin and eyes due to excessive exposure to ultraviolet lighting. The incident gave new meaning to the cryptocurrency trope of Bitcoin maximalists donning "laser eyes."
Plus, check out our deep dive into the emerging SocialFi sector!
✍️ In today’s newsletter:
- Aave freezes markets to patch vulneraility
- Arbitrum to introduce staking mechanism
- Arbitrum Council proposal divides community
- U.K. central bank publishes stablecoin guidance
- Simpsons-inspired NFTs sell out
- ApeFest attendees suffer UV exposure
- Cardano borrows Polkadot tech
- Everything you need to know about SocialFi
📈 Markets in last 24 hrs:
|S&P 500||$4,366||↗ 0.18%|
|Arch WEB3||1.02pts||↗ +5.06%|
|↳ FINANCE||0.95pts||↗ 3.93%|
|↳ INFRA||1.16pts||↗ 6.52%|
|↳ CONSUMER||1.11pts||↗ 4.94%|
Learn more about Arch Indices here.
SCAM WARNING FOR READERS
The Defiant is not releasing a token soon!
On Tuesday Oct 3 a group of DeFi users received phishing emails that pretended to come from a group of companies and projects in the ecosystem, including The Defiant.
Be mindful that the correct domain for The Defiant is THEDEFIANT.IO and NEVER click on any links coming from other domains. This particular email promoted a Defiant token – to be clear, we do not have a token nor are planning to launch one in the near future, and we urge our community and subscribers to NEVER click on links coming from outside our official communication channels, which are:
Stay safe out there Defiers!
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Aave To Vote On Restoration Plan Following Market Freezes
TLDR The Aave community is voting on a proposal to resume normal services after the protocol froze many of its v2 and v3 markets following a reported security vulnerability affected assets offering fixed-rate borrowing. The proposal will also prevent the minting of new tokens representing assets borrowed at fixed rates.
SO WHAT Aave emphasized that no user funds are at risk when announcing the asset freezes. Users can still repay debts and withdraw assets corresponding to the affected pools, but cannot supply or borrow said assets at this time.
Arbitrum Community Greenlights Staking Mechanism
TLDR Arbitrum governance passed a proposal to introduce staking for ARB holders. An initial 12-month campaign will distribute 100M ARB as rewards for stakers, with users receiving additional rewards for committing to lock up their assets for the entire period.
SO WHAT Arbitrum airdropped 12.75% of ARB supply to users in a $1.5B airdrop during March. However, the token currently does not offer any non-governance utility or native yields for holders.
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Arbitrum Governance Divided Over $2.4M Research Coalition
TLDR The Arbitrum community is divided over a governance proposal advocating for the establishment of an "Arbitrum Coalition" tasked with research and development. With Arbitrum requesting $2.2M to fund the entity or 12 months, some community members believe the proposal is wasteful.
SO WHAT The Coalition would span prominent researchers Trail of Bits, Gauntlet, Blockworks Research, and L2beat, with the first three companies set to receive annual payouts of between $780,000 and $1.1M.
Bank of England Unveils Stablecoin Rules
TLDR The U.K. central bank published upcoming guidance for stablecoin issuers. The rules are set to take effect next year, with the Bank of England overseeing stablecoins while the U.K. Financial Conduct Authority will regulate the broader cryptocurrency markets.
SO WHAT The news comes as the United Kingdom seeks to establish itself as a global digital asset hub under the administration of its crypto-friendly prime minister, Rishi Sunak. The legal apparatus seeks to minimize contagion risks and protect customer assets.
Read More: Bank of England Unveils Stablecoin Rules
Free NFT Inspired By The Simpsons Crosses $2M In Trading Volume
TLDR An NFT collection inspired by a recently episode of The Simpsons parodying the non-fungibles sector quickly sold out and is now driving seven-figures in trade volume. The NFTs were initially minted for a $19 fee and now boast a floor price of around $300.
SO WHAT The news comes as the NFT markets are showing tentative sings of recovery, with trade volume picking up in recent weeks after sinking to multi-year lows.
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Cardano Blockchain Plans to Adopt Polkadot's Substrate Framework
TLDR Candano announced it will adopt Substrate, the technology underpinning Polkadot. Cardano will use Substrate to build out an ecosystem of modular "partner chains."
SO WHAT Cardano aims to establish an ecosystem of multiple chains, pivoting away from its existing single-chain model. Investors appear to back the move, with Cardano's ADA token rallying 46% in less than three weeks.
ApeFest Attendees Report Severe Eye Injuries After UV Light Exposure
TLDR Yuga Labs' recent ApeFest conference ended in injury for several attendees, with multiple guests reporting they were admitted to hospital for burns resulting from exposure to ultraviolet lighting. Yuga estimated around 1% of attendees were injured.
SO WHAT The incident coincided with Yuga announcing a partnership with Magic Eden to launch an NFT marketplace contractually enforcing royalty payouts for NFT creators.
What Is Social-Fi?
TLDR The explosive boom of social-fi platforms caught many onlookers off-guard, with many fortunes quickly made and lost speculating on keys granting access to exclusive chatrooms associated with prominent Twitter influencers.
SO WHAT While Friend Tech kicked off the social-fi boom in August, rival platforms have since proliferated across different networks. Our social-fi explainer walks through everything you need to know to dive into the emerging sector.
Read More: What Is Social-Fi?