↕️Two-Way Volatility Drive Heavy Crypto Liquidations

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TLDR More than 100,000 traders were liquidated amid violent volatility yesterday. Most leading assets quickly recovered following a weekend retracement and Monday capitulation, wiping out $230M worth of positions from bulls and bears alike.

SO WHAT The heavy liquidations served to flush leverage out of the markets, with many investors entering into debt-fueled positions amid the recent sustained rally. While longs represented the majority of liquidated positions, Bitcoin bears accounted for more than two-thirds of BTC margin calls as Bitcoin's dominance extended.

READ MORE: Uptick In Crypto Volatility Drives $230M In Liquidations

TLDR Institutional investors are taking profits, with CoinShares reporting the first week of outflows from institutional crypto products for the first time in more than two months.

SO WHAT Traders pulled $16M from institutional products this past week, reversing an 11-week run of inflows — the longest stretch on inflows for 2023. Institutional investors accumulated $1.6B worth of BTC exposure throughout the year.

Read More: Institutions Break 11 Straight Weeks Of Buying Crypto

TLDR EigenLayer, the pioneering restaking protocol, increased its deposit limits for liquid staking tokens alongside launching support for six new LSTs. Users have already tipped 88,000 ETH worth of LSTs following the increase, leaving a little over 400,000 ETH worth of capacity unfilled.

SO WHAT LST holders have previously missed out on restaking via EigenLayer, with the protocol's liquid staking pools quickly reaching their limits with previous cap increases. EigenLayer's decision to support a wide variety of LSTs demonstrates the project's desire not to drive liquid staking centralization amid concerns over Lido's dominance.

Read More: EigenLayer Raises Deposit Cap To 500,000 ETH

TLDR Coordinape launched CoLinks, a professional networking application seeking to leverage on-chain reputation. Reputation is established through the on-chain interactions associated with their wallet, in addition to by linking their account to profiles on Twitter or LinkedIn.

SO WHAT Coordinape is seeking to showcase web3 social applications offering utility beyond the ponzinomics associated with the recent SocialFi boom driven by Friend Tech and copycats. However, CoLinks also borrows the key speculation mechanism pioneered by Friend Tech.

Read More: Coordinape Launches ‘CoLinks’ Professional Social Network For Crypto

TLDR Aurory, a Solana-based web3 game inspired by Pokemon, has become the latest crypto project to fall victim to a bridge exploit. Hackers compromised Aurory's marketplace and bridge, leading to a loss of $830,000 from team-controlled wallets.

SO WHAT The Aurory team used its market maker to purchase all of the stolen funds back from the attacker via the Arbitrum-based Camelot DEX. Aurory said no user funds were impacted, and took its bridge protocol offline to address the vulnerability.

Read More: Hacker Steals $830,000 From Cross-Chain Bridge of Solana Game Aurory

TLDR Boring Security, a crypto security firm funded by the ApeCoin DAO, announced that it recovered 38 Bored Ape and 18 Mutant Ape NFTs following negotiations with a hacker. The NFTs were stolen from NFT Trader, and peer-to-peer marketplace, on Saturday alongside other high-value tokens.

SO WHAT Hack victims can now open a support ticket via Boring Security's Discord to initiate proceedings to recover their tokens. The NFTs were returned in exchange for a bounty equating to 10% of the stolen assets' floor price.

Read More: Boring Security Rescues 38 Apes Stolen In NFT Trader Exploit

TLDR Web3 industry leaders have pooled $78M to support pro-crypto politicians through the Fairshake Super Political Action Committee (PAC) ahead of the 2024 election.

SO WHAT Fairshake will support U.S. House and Senate candidates from any party who champion policies supporting web3 innovation. The news comes after Elizabeth Warren, a notorious crypto skeptic, drafted a bill seeking to impose stringent KYC requirement on users across the web3 sector, including non-custodial wallet users.

Read More: Crypto Leaders Raise $78 Million to Support Pro-Innovation U.S. Politicians

• Curve governance backs reimbursing hack victims
• Hackers breach website of crypto security firm CertiK
• Friend Tech teases v2 iteration

• Elizabeth Warren Pushes Back at Blockchain Lobbying Efforts (CoinDesk)
• Zcash founder Zooko Wilcox steps down from Electric Coin CEO role (The Block)
• UK Treasury unveils sandbox rules for digital asset innovation (CryptoSlate)