🚨CFTC Charges DeFi Derivates Protocols
The CFTC has taken action against the derivatives protocols Opyn, Zeroex, and Deridex, ordering each of the Delaware-based companies to cease operations. The protocols are accused of offering illegal derivatives to U.S. persons, receiving fines of $250,000, $200,000, and $100,000 respectively.
Institutional asset managers Ark Invest and 21Shares teamed up to file for a spot Ether ETF in the United States. The move comes after a U.S. court sided with Grayscale in the firm's appeal against the SEC's rejecting its spot Bitcoin ETF application.
Ethereum is trending inflationary during September so far, with a lull in activity flipping Ether's burn rate negative after a largely deflationary opening eight months of the year. More than 3,500 entered circulation over the past seven days.
A DeFi user took out a $1.1M loan against an NFT representing a collection of designer tee shirts as collateral on the Arcade lending protocol. The lender can redeem the NFT to take possession of the shirt collection from an escrow company in the event of default, with the collection recently receiving a $2.5M valuation from Sotheby's.
Also. Metamask launched a new feature allowing U.S., U.K., and certain European users to sell crypto and receive fiat sent to their PayPal account. However, users are complaining that the service incurs heavy fees.
✍️ In today’s newsletter:
- DeFi derivatives teams face CFTC's wrath
- Ark Invest and 21Shares submit spot Ether ETF filing
- On-chain activity slump sends ETH inflationary
- NFT-backed by designer shirts backs $1.1M DeFi loan
- MetaMask's 'sell' feature cops flak for high fees
📈 Markets in last 24 hrs:
Learn more about Arch Indices here.
THANKING OUR NEWSLETTER SPONSORS
| Newsletter continues below |
Welcome to a new era of Ethereum scalability. Build faster, more user-friendly Ethereum dapps with Linea's developer-ready zkEVM rollup. Explore 100s of partner creations and start your own journey today at linea.build
CFTC Fines Opyn, ZeroEx and Deridex
TLDR The U.S. Commodity Futures and Trade Commission has charged three popular DeFi derivatives protocols. The CFTC said Opyn, Zeroex, and Deridex — protocols maintained by Delaware-based companies — illegally offered unlicensed derivatives to U.S. persons.
SO WHAT The CFTC levied six-figure fines against each company, asserting that transactions executed via smart contracts are subject to U.S. laws. The actions also comes as the SEC's aggressive campaign of regulation-by-enforcement is facing challenges in the U.S. court system.
READ MORE: CFTC Fines Opyn, ZeroEx and Deridex
Ark Invest and 21Shares Apply For Spot ETH ETF
TLDR Cathie Wood's Ark Invest and crypto ETP issuer 21Shares joined forces to file for a spot Ethereum ETF application. If approved, the fund would be the first spot ETF greenlit by U.S. regulators.
SO WHAT Analysts are tipping it may only be a matter of time before a spot crypto ETF is approved in the United States, with Grayscale's appeal against the SEC's decision to reject its Bitcoin ETF bid recently receiving court backing. Unlike existing futures ETFs, a spot crypto ETF would hold its underlying digital asset.
Ether Turns Inflationary As On-chain Activity Slides
TLDR More than 3,500 ETH was added to Ethereum's supply this week as the network's on-chain activity continues to fall. Transaction fees fell to their lowest level since January, with users paying less than $2,60 for simple token transfers.
SO WHAT Ethereum appeared to be making good on its deflationary promise after transitioning to Proof of Stake 12 months, with Ether's supply consistently falling during 2023 amid high on-chain activity. However, the protracted NFT bear market and an end to the recent memecoin trading frenzy pushed Ethereum's burn rate into the negative during an entire week for the first time this year.
A new era in DeFi Risk Management, Bumper is LIVE!
Bumper is an innovative DeFi protocol that protects the value of the crypto you hold from downside volatility and market crashes whilst simultaneously capturing gains when the price climbs.
Set the price you want to protect and if the market crashes, your asset will never fall below that price. Importantly, if your asset price pumps, you’re still capturing that value rise.
- Protect: 30% cheaper premiums for protection than Put Options priced using Black-Scholes.
- Earn: 3-18% real yield for liquidity providers derived from premiums paid for protection.
Following $20m in funding, 3 years of R&D, 4 years of simulated market data and a collaboration between Swiss economists with 20 developers - Bumper have made a breakthrough in risk management, disrupting a $13trn Options market.
Be first to try Bumper and earn your share of $250,000 in BUMP early user incentives.
Learn more about how to trade risk and Earn with Bumper!
Arcade Facilitates $1.1M Loan Against Supreme T-Shirt Collection
TLDR The DeFi lending protocol Arcade facilitated a $1.1M loan backed by a boxed collection of Supreme t-shirts. In the event of default, the lender can redeem an NFT for the apparel collection — which Sotheby's valued at $2.5M just a few years ago.
SO WHAT The unconventional loan offers a novel take on the tokenization of real-world assets. While many web3 teams are looking to RWAs for low-risk treasury applications, the loan demonstrates how DeFi protocols can empower individuals to bring assets on-chain.
MetaMask ‘Sell’ Feature Enables Ethereum Users To Cash Out
TLDR MetaMask, the popular Ethereum wallet from Consensys, launched a new feature allowing users to sell their crypto fiat by partnering with prominent crypto payments firms. The service is currently live in the U.S., U.K., and select European countries, with users receiving fund via their PayPal account.
SO WHAT While the new service introduces a convenient fiat ramp, may users are complaining of excessive fees associated with the feature. One user reported paying 9% in fees for a £65 transaction.