🌉LayerZero In Hot Water Over stETH Bridge Deployment

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LayerZero is copping backlash for launching a bridge allowing stETH transfers to Avalanche, BNB Chain, and Scroll via its OFT protocol. Many in the Lido community are outraged that the deployment happened without approval from the Lido DAO.

Vodafone Digital Asset Broker announced the execution of a proof of concept in partnership with Chainlink. The Vodafone subsidiary also joined Chainlink as a node operator.

The supply of Liquidity's LUSD stablecoin is down 25% since early August amid the surge of redemptions. Researchers attributed a recent acceleration in the trend to arbitrage bots taking advantage of spreads between LUSD and sDAI.

Arbitrum launched Orbit, a tech stack allowing users to build bespoke chains leveraging Arbitrum's Layer 2 infrastructure. The move follows similar product deployments from rival Ethereum scaling teams Optimism and ZkSync.

Polygon launched migrations from MATIC to its new POL token. The token will serve as the basis of Polygon's forthcoming revamped staking layer, which is set to support restaking.

Plus, Cami gives us her reaction to Bloomberg's new documentary looking into the fraud perpetrated by Sam Bankman-Fried.

✍️ In today’s newsletter:

Tempers flare over LayerZero's stETH bridge deployment
Vodafone subsidiary onboarded as Chainlink node operator
LUSD supply shrinks 25% in three months
Arbitrum Orbit opens doors to mainnet deployments
MATIC to POL token migrations are live
Bloomberg's SBF documentary falls flat

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DeFi

LayerZero Deploys stETH Bridge Without Approval From Lido Governance

TLDR LayerZero's move to launch a bridge facilitating cross-chain stETH transfers to Avalanche, BNB Chain, and Scroll has attracted the ire of Lido's community. While LayerZero pitched the bridge as a proposal on Lido's governance forum, it also said the protocol is live on social media.

SO WHAT Many community members slammed LayerZero for front-running Lido governance, calling for the bridge to be taken down in the mean time. Concerns cited include security risks and liquidity fragmentation, with LayerZero already moving to scale back its services for Scroll due to its Layer 2 architecture.

Business

Telecom Giant Vodafone's Digital Asset Division Becomes Chainlink Node Operator

TLDR Vodafone Digital Asset Broker completed a proof-of-concept with partners including Chainlink and Sumitomo Corporation. The project leveraged Chainlink's Cross-Chain Interoperability Protocol (CCIP) and IoT devices to improve the efficiency of data transfers in the context of global trade.

SO WHAT The proof of concept with Vodafone DAB is the latest example of major institutions leveraging Chainlink's technology to explore distributed ledger technology. On Aug. 31, Swift released findings from a pilot using CCIP to transfer tokenized assets between blockchains.

Stablecoins

LUSD Supply Shrinks As Redemption Woes Continue

TLDR Liquity's LUSD stablecoin is suffering from an accelerating increase in its supply, with 1.6% of LUSD removed from circulation on Oct. 24 alone. A quarter of the token's supply was redeemed since the start of August.

SO WHAT LUSD promised to rival DAI as the leading decentralized stablecoin, briefly boasting a supply of $1.5B one month after its April 2021 launch. However, LUSD now ranks as just the 12th-largest stablecoin by market cap.

Arbitrum’s Orbit Is Ready For Mainnet Deployment

TLDR Arbitrum launched Orbit, a tech stack allowing developers to permissionlessly deploy chains leveraging an Arbitrum-powered custom blockchain solution.

SO WHAT The move follows similar deployments from rival scaling teams Optimism and ZkSync, each of which recently rolled out techn stacks allowingg builders to launch bespoke Layer 2 networks.

Tokens

Polygon Launches MATIC To POL Token Migrations

TLDR Polygon enabled migrations for MATIC holders to convert their assets to its freshly-launched POL token. The launch comes one day after Polygon deployed POL on Ethereum.

SO WHAT The move is a major milestone in the project's Polygon 2.0 overhaul, paving the way for a new staking layer supporting restaking. POL stakers will be able to simultaneously perform multiple tasks for different Polygon chains to earn extra rewards via its forthcoming restaking mecahnism.

NFTs

Bloomberg's SBF Documentary Just Dropped and It Could Have Been So Good

TLDR Bloomberg's new documentary "RUIN: Money, Ego and Deception at FTX," boasts production value that rivals an HBO film, a grabby story line, and a resonable overview of Sam Bankman-Fried's downfall.

SO WHAT However, the film does not probe deep enough into the fraud perpetrated by SBF, and includes interviews from questionable sources.

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🌍 ELSEWHERE

Ethereum’s Dencun Upgrade Is a Step Toward a Scalable Settlement Layer: Goldman Sachs (CoinDesk)
Kraken to share user data with IRS next month following June court order (The Block)
Yuga Labs wins $1.6M in Bored Apes trademark infringement case (CryptoSlate)