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📉Crypto Markets Crumble Following Hawkish Fed Minutes

The Defiant

DeFi Daily

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The markets took a violent downturn in the past 24 hours, with top digital assets sinking to multi-month lows. Investors rushed to offload risk assets in response to the publication of minutes from a Federal Reserve meeting suggesting more interest rates might be around the corner.

The downturn overshadowed bullish news from Coinbase, with the exchange receiving approval from the U.S. National Futures Association to offer crypto futures to select users. Brian Armstrong, Coinbase's CEO, described the news as a milestone for regulatory clarity regarding crypto in the United States.

The Avalanche Foundation has awarded a $3M grant to Dexalot to launch a central limit order book (CLOB) exchange as an Avalanche subnet. The exchange promises to offer the high transaction throughput of order book trading without sacrificing decentralization.

And Wintermute has drawn the ire from the DeFi community after asking Yearn to borrow $2M worth of its YFI token at an interest rate of 0.1% in exchange for making a large deposit into its illiquid yCRV pool. While critics say the market maker is requesting an unsecured loan at a bargain interest rate, Wintermute claims the deal benefits both parties.

✍️ In today’s newsletter:

  • Top assets crash to multi-month lows on renewed inflation fees
  • National Futures Association approves Coinbase to issue derivatives
  • Dexalot gets $3M grant from Avalanche for limit order DEX
  • Wintermute's bid to borrow $2M in YFI from Yearn cops flak

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📈 Markets in last 24 hrs:

TickerValue24h
BTC$25,916 -7.14%
ETH$1,654 -4.9%
S&P 500$4,370 -0.76%
GOLD$1,884 -0.63%
Arch WEB30.79pts -3.69%
FINANCE0.84pts -4.01%
INFRA0.72pts -3.32%
CONSUMER0.94pts -3.27%
Arch WEB3

Learn more about Arch Indices here.

🎬 WATCH

Watch our video examining the recent decline of DeFi. And check out our podcast with Jesse Pollak , the creator of Base, Coinbase's new Layer 2 network.


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Markets

Bitcoin Hits Two-Month Low Under $28,000

TLDR The crypto markets crashed on Thursday after the publication of minutes the U.S. Federal Reserve meeting in July suggesting there could be more interest rate hikes coming soon. The combined crypto capitalization shed 5% in 24 hours amid the turmoil.

SO WHAT The sudden downtrend reversed month of gains for top digital assets, with ETH briely dipping to its lowest level since Q1. Investors are now anxiously awaiting the markets' next move.

READ MORE: Bitcoin Hits Two-Month Low Under $28,000


Regulation

Coinbase Wins Approval To Offer Crypto Futures To US Clients

TLDR Coinbase has received the blessing of the National Futures Association to provide crypto futures contracts to eligible U.S. users. Coinbase is now the first crypto exchange regulated in the U.S. permitted to offer both spot and futures trading for digital assets.

SO WHAT Coinbase described the news as a critical moment for regulatory clarity in the United States. The exchange is currently in a legal dispute with the Securities and Exchange Commission for allegedly listing securities on the its platform. Coinbase also filed complaints against the SEC for failing to respond to use its formal rulemaking process to develop regulations for web3 based on public consultation.

READ MORE Coinbase Wins Approval To Offer Crypto Futures To US Clients


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Technology

Dexalot Awarded $3M Grant By Avalanche Foundation

TLDR Avalanche has given a $3M to Dexalot to central limit book DEX as an Avalanche subnet. Dexalot will receive the AVAX tokens over 12 months if it can meet certain targets for trading volume.

SO WHAT Dexalot is among an emerging cohort of decentralized central limit order book exchanges. Limit book DEXes claim to combine the high transaction throughput of centralized exchanges while retaining the benefits of decentralization.

READ MORE: Dexalot Awarded $3M Grant By Avalanche Foundation


DeFi

Wintermute Proposal To Borrow YFI Draws Fire From DeFi Community

TLDR Wintermute proposed a deal to Yearn Finance that would see the market maker borrow $2M worth of YFI from Yearn's treasury. Wintermute pledged to provide $25M CRV to Yearn's illiquid yCRV pool as part of the offer.

SO WHAT With widespread unsecure lending creating catastrophic contagion risk in web3 last year, crypto commentators were quick to slam Wintermute for its offer.

READ MORE: Wintermute Proposal To Borrow YFI Draws Fire From DeFi Community


🔎 OUR REPORTERS ARE WATCHING


🌍 ELSEWHERE

  • Crypto Traders Suffer $1B in Liquidations in Sharp Sell-Off for Bitcoin, Ether (CoinDesk)
  • New Zealand parliamentary report advises against hasty crypto regulation (Cointelegraph)
  • SEC Expected to Approve Ethereum Futures ETFs by October (Decrypt)