Squiffs _ & Olivia Capozzalo
November 14, 2025

Happy Friday, Defiers!

Today’s big story:

After President Trump signed a bill into law on Nov. 12 to end the federal government shutdown, Polymarket bettors rushed to bet on that date — despite a small, but critical nuance in the market’s rules.

In other news:

XRP rallies on first U.S. spot ETF
Tokenized stocks heat up on Hyperliquid
ZEC surges again after Winklevoss-backed DAT news
Kaia’s CEO on building a stablecoin super app [SPONSORED]

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Building a lasting DeFi ecosystem is about more than chasing TVL; it’s about architecting a system that people can use to conduct business. After the initial gold rush, Avalanche is focused on a calculated new beginning, building a sustainable financial future for institutions.

Camila Russo explores this shift with Ava Labs’ Luigi D’Onorio DeMeo and the founders of BENQI, Euler Finance, and LFJ. They unpack the strategy, the tech, and the mission to build an ecosystem that is designed for the long term.

Watch Episode 2

We’re back! Here’s what you need to know in web3 today

📈 Markets in the Past 24 Hours

TICKER	VALUE	24H
Bitcoin	$97,039	-4.21 %
Ethereum	$3,220.65	-4.58 %
XRP	$2.32	-4.66 %
BNB	$928.65	-2.90 %
Solana	$142.68	-6.69 %

Today’s Big Story

Government Shutdown Brings More Polymarket Drama

The prediction market space’s parabolic rise has been incredible to watch, but with new growth comes new players, and therefore, magnified problems.

This week, Polymarket saw its hottest market since the NYC mayoral election, as users piled in to predict the conclusion of the U.S. government shutdown.

The market recorded a whopping $30 million in volume over just four days. However, the market’s rules and subsequent resolution left many traders with huge losses after they failed to understand the market's rules.

While the funding bill that was set to reopen the government was passed on Nov. 12, the criteria for market settlement clearly stated, “This market will resolve to the calendar date (ET) of the first day on which the U.S. Office of Personnel Management (OPM) announces that the U.S. federal government is not shut down due to a lapse in appropriations.”

The OPM website was not updated until Nov. 13.

Users who were less familiar with Polymarket rulings piled into Nov. 12 YES positions at 90%+ odds, thinking the trade was “free money.” However, as many of us have learned the hard way in crypto, there is no such thing.

During the two and a half hours between President Trump signing off on the bill and midnight, traders began to realize what was happening, as Nov. 12 YES odds peaked at 97% ahead of the signing, before they started slowly bleeding out, and volume vanished. By 11 pm ET, the odds had fallen from 97% to 72%, and once the clock struck midnight, 1%.

Unfortunately, some traders, even those who are experienced on Polymarket, continued to pile into Nov. 12 YES positions while the OPM website clearly stayed in its “closed” state.

OPM Page on Nov 12 - Post Funding Bill Vote

While one can understand why Nov. 12 YES buyers would be upset, Polymarket clearly noticed what was happening, and as the market picked up volume, the website placed a large blue banner on the market that clearly stated “Read the rules” and stated that the market would be resolved based on the OPM website and not the vote conclusion.

Users who were actively trading received multiple warnings to read the rules and understand what they were betting on, and in reality, anyone betting with significant size needs to be able to take two minutes and actually understand what they’re doing.

“This exposes a broader risk in prediction markets - even when outcomes seem certain, resolution criteria can create unexpected losses. Traders who bet on the Nov. 12 resolution without reading the fine print lost because they conflated political resolution with administrative announcement. It’s a harsh reminder that market design matters as much as market fundamentals,” Marcin Kazmierczak of RedStone told The Defiant.

Most seasoned Polymarket traders have come to terms with the outcome and recognize it as part of the game. This is not the first rule-technicality that has resulted in losses for bettors, and it will not be the last, but it certainly is an expensive lesson for some.

Squiffs, resident degen at The Defiant

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🎬WATCH

Inside the PYUSD's takeover of PayPal with May Zabaneh, VP Crypto

In the latest episode of The Defiant podcast, PayPal's VP of Blockchain, Crypto and Digital Currencies, May Zabaneh, breaks down PayPal’s move into stablecoins with PYUSD and why it matters for financial inclusion. The discussion covers the role merchants play in crypto acceptance, how DeFi and traditional finance are converging, and why interoperability will be essential in the next phase of digital payments.

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Top News in the Past 24 Hours

XRP Surges as First US Spot ETF Debuts on NasdaqRipple’s XRP surged on Thursday following the debut of Canary Capital’s spot XRP exchange-traded fund (ETF), which is trading under the ticker XRPC on the Nasdaq.Why it matters: The launch marks the first U.S.-listed ETF that offers direct exposure to spot XRP. The product saw the most day-one volume of any U.S. ETF launched this year, just beating Bitwise’s Solana Staking ETP.
Tokenized Equity Market on Hyperliquid Heats Up Less than a month after TradeXYZ deployed tokenized Nasdaq futures (XYZ100) on Hyperliquid, multiple protocols have launched TSLA, NVDA, and SPACEX perpetuals over the last 24 hours. Two of the protocols’ tokenized stock perpetuals settle in USDH, Hyperliquid’s official stablecoin, developed by Native Markets. Why it matters: This move marks the first true source of demand for USDH, which will funnel 50% of the yield on its reserves towards buying HYPE tokens.
ZEC Jumps as Winklevoss‑Backed Cypherpunk Reveals $100M Zcash TreasuryZcash is seeing another rally over the past two days after Gemini co-founder Tyler Winklevoss revealed a new public firm, Cypherpunk Technologies, dedicated to building a corporate treasury around ZEC.Why it matters: ZEC has been on an extended rally since late September, despite the rest of the market struggling; the new DAT was first revealed in early October, but the choice of digital asset wasn’t disclosed at the time.