💸DeFi Faces Liquidity Crunch

TLDR The $70M exploit of Curve Finance has led to a liquidity crunch on major DeFi lending platforms like Aave, with borrowing costs for major stablecoins at their highest in over a year. The leading DeFi money market has seen borrowing rates for USDC and USDT spike to over 22% and 18%, respectively.

SO WHAT The current situation represents a significant moment for DeFi as it challenges the perceived safety of core DeFi protocols. Moreover, it renews discussions about risk management in DeFi, as other platforms also grapple with how to handle CRV-backed loans.

TLDR Base, the Layer 2 network developed by Coinbase, is set to launch its general access mainnet on August 9. The network will host over 50 entities, including big brands such as Coca-Cola and Atari, along with NFT marketplace OpenSea. Base has stated that it will offer daily NFT drops as part of its celebratory "Onchain Summer" campaign.

SO WHAT The project's association with Coinbase, one of the most recognized names in the cryptocurrency space, as well as partnerships with prominent brands, could potentially accelerate its adoption.

TLDR Seven applications for Ether futures ETFs have been filed with the SEC in recent days. Observers suggest the flurry of applications may be driven by a belief that the SEC is more likely to approve a spot Bitcoin ETF, which could in turn increase the chances of Ethereum ETFs getting approved.

SO WHAT If approved, these Ethereum ETFs could offer retail investors an accessible way to gain exposure to digital assets without dealing with the technical complexities of crypto. However, there is also criticism about the futures contracts underpinning these proposed ETFs, with some arguing that these financial instruments enable Wall Street manipulation while spot ETF approvals remain elusive.

TLDR Despite a broader market downturn, the floor price of Starbucks' Green Apron NFTs remains resilient. Each NFT also comes with 1,500 points that can be used to upgrade Starbucks' loyalty-based Odyssey pass.

SO WHAT This move by Starbucks signifies another major brand recognizing the potential of NFTs and the broader digital asset space. By integrating the NFTs with their loyalty program, Starbucks is potentially setting a trend for other corporations to follow, linking digital assets with real-world benefits.

TLDR Web3 advocates are challenging the IRS's recent ruling that staking rewards are immediately taxable. According to the IRS's Revenue Ruling 2023-14, stakers must report the fair market value of rewards as gross income in the year they are received.

SO WHAT The IRS ruling adds to the increasing regulatory scrutiny faced by staking, with both Kraken and Coinbase having faced legal action from the SEC related to their staking services. Critics argue that the IRS's ruling overlooks the economic and practical reality of cryptocurrencies.

• Traders are dumping USDT on Curve and Uniswap
• BALD deployer potentially revealed

• Bitfinex Hacker Revealed: Razzlekhan's Husband Admits He Stole Billions in Bitcoin (Decrypt)
• Michael Saylor Says Bitcoin ETFs Will Be the ‘Super Tanker’ for His MicroStrategy ‘Sports Car’ (Coindesk)
• Monthly NFT sales fell for fifth consecutive month to $495M in July (TechCrunch)