Another Day, Another Exploit
gm, Defiers!
TL;DR:
- LP TrustedVolumes suffers exploit
- Bitwise takes over Superstate’s Crypto Carry Fund
- Payward acquires Reap
- SODAX Bets DeFi's Next Users are AI Agents, Not People [SPONSORED]
- Figure’s Crypto-Backed Loans Are Redefining How Investors Unlock Liquidity [SPONSORED]
Let’s dive in.
Markets corrected slightly today, with total market cap dipping less than 2% in 24 hours and BTC slipping below $80,000.
Meanwhile, DeFi suffered yet another exploit. Market maker and resolver TrustedVolumes, used by 1inch and other protocols, lost $6.7 million in an exploit on the Ethereum network.
As we close out the first week of May, this already marks at least the fifth DeFi exploit this month so far, following a record month in April for number of incidents.
In more positive news for the industry, today Bitwise announced its first tokenized fund, taking over Superstate’s Crypto Carry Fund (USCC).
Also today, Kraken’s parent company continued its acquisition spree with the purchase of Hong Kong-based stablecoin payment and crypto card firm Reap for up to $600 million in cash and Payward stock.
Read more below!
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The $300M DeFi Bailout: Heroic or Unsustainable?
Was DeFi United a bailout or just voluntary market coordination? The Defiant's Camila Russo is joined by Dean Eigenmann (Markets Inc.), binji (Ethereum Foundation), and David Phelps (Confetti) to debate whether crypto bailouts are good for crypto, what this means for decentralization, and what DeFi must fix before it can scale to the mainstream.
Watch the full debate here:
1inch Resolver TrustedVolumes Drained for $6.7M on Ethereum
Liquidity provider TrustedVolumes, a market maker and resolver used by 1inch Fusion and other protocols, confirmed on Thursday that it had been drained for roughly $6.7 million in an exploit on the Ethereum network.
Why it matters: This marks at least the fifth major DeFi exploit since the start of May, following the worst month for crypto exploits ever, by number of incidents.
Bitwise to Take Over Superstate's $267M Tokenized Crypto Carry Fund
Bitwise Asset Management will take over investment management of the Superstate Crypto Carry Fund (USCC), a tokenized cash-and-carry strategy with roughly $267 million in assets, the two firms announced today.
Why it matters: This marks Bitwise’s first tokenized fund and Superstate's second handoff to a major asset manager this year.
Kraken's Parent Company Acquires Stablecoin Payments Firm Reap for $600M
Payward Inc., the parent company of U.S. crypto exchange Kraken, has agreed to acquire Reap Technologies — a stablecoin-native card issuing and payments infrastructure company — for up to $600 million in cash and stock.
Why it matters: The deal values Payward at $20 billion, and marks the firm’s second major acquisition in less than a month.
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