Jupiter's YOLO Hits $1 Billion in Its First Day
Plus: MSCI may drop Strategy and Metaplanet, NEAR Intents explains its $3.8M exploit, and AMC refuses Robinhood stock tokens.
gm, Defiers!
These are the biggest stories in DeFi and crypto:
- Jupiter's YOLO did $1B in volume in a day
- MSCI may drop Strategy and Metaplanet
- NEAR Intents published its $3.8M postmortem
- Aave V4 links dollar and euro loans on Arc
- AMC refused Robinhood stock tokens
Every DeFi protocol keeps two records. One is its internal ledger, which says who is owed what. The other is the set of assets it actually holds. While the two match, every balance on the ledger can be redeemed. In the past day, three projects disclosed that their two records had come apart, each in a different way. Is there one check that would have caught all three?
Backbone Labs runs bOSMO, a liquid staking token for Osmosis. Each token stands for OSMO staked on the holder's behalf and can be redeemed for it. Since at least April, the contract paid about 1.676 OSMO per bOSMO at redemption. The stated rate was about 1.117. The contract counted OSMO staked with Backbone's own validator twice. On Oct. 9, the Osmosis community pool redeemed 776,000 bOSMO and received about 1.3 million OSMO. That is roughly 433,000 OSMO more than the stated rate allowed. The remaining holders were left with backing of about 0.06 OSMO per token.
NEAR Intents runs cross-chain swaps against an internal ledger on NEAR. An attacker made 23 deposits through a contract built to fail. The token contract refunded each deposit, but the ledger kept the credit. Between Sept. 29 and Oct. 1, the attacker withdrew $3.8 million against those credits, and later returned it in full. The postmortem published today says the monitoring compared assets across chains. It never compared users' total internal balances with the tokens the contract held.
Pirate Chain, a privacy blockchain, said on Oct. 15 that a validation bug let someone create about 39.8 million ARRR. That is about 20% of the supply, and it is worth roughly $9.9 million at today's price, by our arithmetic. The new coins went straight into a shielded pool, where their movement cannot be traced.
All three failures miss the same test: total claims on the ledger must not exceed the assets behind them. NEAR Intents has now added that comparison, with an automatic pause when the numbers diverge. Jupiter's new YOLO product, our lead story below, takes the opposite approach. Its rules tell traders up front that the house pool may not cover a winner's profit. That profit then waits in a queue that "may never pay out." That rule states the gap before anyone trades. The bOSMO, NEAR Intents and Pirate Chain users learned of their gaps only after the money had moved.
Read more below!
As of 21:02 UTC, Oct. 16. Data: CoinGecko, Aave, Hyperliquid. Full list
Ledger Was Hacked — Who Do You Trust With Your Keys Now?
Camila Russo talked with Pablo Sabbatella, founder of security firm Opsek, about the tampered Ledger wallets. Ledger now says an organized group ran the campaign for months. Watch the full conversation.
Jupiter Says YOLO Hit $1 Billion in Volume in Under 24 Hours
Jupiter said its YOLO product recorded $1 billion in volume in under 24 hours after its Oct. 15 beta launch. YOLO offers up to 1,000x leverage on SOL, BTC and ETH, so the figure counts the notional size of positions. Deposits are far smaller. At 1,000x, 10 JupUSD of collateral opens a $10,000 position, and a 0.1% move against it wipes it out. Trades never reach a market; a single house pool funded by losers pays winners. Jupiter has not disclosed total collateral, the pool balance or whether any profits are queued.
MSCI Adopts Rules Putting Strategy and Metaplanet at Risk of Index Removal
MSCI adopted rules that exclude non-operating companies from its main indexes, which puts Strategy and Metaplanet at risk of removal after the Nov. 30 close. Companies without substantial operating assets face five financial tests, and four flags make them ineligible. Existing members leave only after failing in two straight annual periods. Strategy says MSCI-linked funds hold about 13 million of its shares, or 3.1% of the total. MSCI will publish the final list on Nov. 11. Strategy argues its bitcoin treasury is an operating business.
NEAR Intents Postmortem Links $3.8 Million Exploit to Deposit Bug
NEAR Intents published its postmortem on the $3.8 million deposit-notification exploit. A fix went out on Oct. 2, but a second critical report in the same feature led the team to remove it entirely on Oct. 7, and the researcher received $300,000. A similar bug-bounty report in January had been fixed before anyone exploited it. The team has now added a check that pauses the contract when user balances and held tokens diverge. The postmortem does not name affected solvers or count affected users.
Aave V4’s Arc Markets Connect Dollar-Euro Loans to Shared Liquidity
Aave V4 runs two lending markets on Circle's Arc that draw on one shared liquidity hub. The Forex market lets users pledge USDC to borrow EURC, or EURC to borrow USDC, so euro holders can borrow dollars without selling. The Main market takes USDC, wrapped ether and cirBTC as collateral, but not EURC. Aave said the Arc deployment passed $300 million in deposits on Oct. 12. Forex launched with tighter caps, such as 9 million EURC of borrowing, because EURC has thin secondary-market liquidity.
AMC CEO Says Company Won’t Consent to Robinhood Stock Tokens in US
AMC CEO Adam Aron said the company will not consent to Robinhood stock tokens of its shares in the U.S. Under the SEC's Sept. 17 exemption, a company that objects within 30 days blocks trading on the notified venue, though not Robinhood's offshore tokens. Nine companies, including CoreWeave and Broadcom, have now objected to OKX-ICE's planned venue. The market keeps growing anyway: DWF Labs counts $3.8 billion in tokenized equities, up 483% since January, with BNB Chain now ahead of Ethereum in share.
Other Stories Worth Your Time
Solana's Shanghai Event Halted With Officers Present, Attendees Say — Lily Liu later said the event was postponed after registrations quadrupled.
Celestia’s TIA Climbs 59% in Four Weeks as Blob Demand Slips — blob data posted to Celestia fell over the same period.
Google Cuts Quantum Magic-State Errors 40-Fold on Willow — the result supports an error-reduction technique; it demonstrates no attack on crypto keys.
Karpelès Reports Ledger Implants in Devices From Two More Resellers — Ledger says inspections of its German stock found no tampering.
Judge Rejects Gemini-CFTC Bid to Lift Settlement Restrictions — the exchange's 2025 settlement restrictions stay in place.
Nasdaq-Listed Perpetuals Files to Trade Tokenized US Stocks Under SEC Exemption — it published a Tokenized Securities Venue Notice on Oct. 14.
Deutsche Bank Plans Crypto Custody Launch Within Weeks — also, Mizuho, MUFG and SMBC finished a yen stablecoin pilot and Coinbase and Marqeta plan enterprise stablecoin cards.
Binance.US Seeks Up to $100 Million at $1 Billion Valuation, Bloomberg Reports — the exchange restored dollar services in 2025.
SEI Perpetual Futures Trade on CFTC-Regulated OG.com Markets — separately, INJ rose 27% in 24 hours, outpacing NEAR and SEI.
Filecoin Plans to Shift Block Rewards Toward Paid Storage — FIP-0118, still a draft, favors services with paying customers.
Network School Takes Over Farcaster With New Posting Rules — it adds a social smart contract and AI-assisted moderation.
Unagi Puts Persona and Ultimate Champions Up for Sale in Liquidation — offers for the games and UNA assets are due Nov. 2.
STRK’s L1 Bet: Eli Ben-Sasson on Starknet’s Exit Plan — our livestream on Starknet's plan to leave Ethereum, now as a podcast.
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