💰Victims Of Major CeFi Insolvencies To Receive Payouts

The Defiant

The Defiant Daily

GM Defiers!

The major CeFi insolvencies of the 2022 bear trend are beginning to yield compensation for users. Celsius began distributing $3B in crypto and fiat to customers on the same day that a U.S. bankruptcy court approved FTX's plan to pay $7B to users.

However, FTX clients are unhappy the payouts are based on the value of account balances from November 2022.

In related news, a Singapore court backed DeFiance Capital's claim that its $140M in assets should be treated separately from Three Arrows Capital — the $10B failed VC firm.

Plus, Protocol Guild wants Ethereum ecosystem projects to donate 1% of their tokens' supply to support future development, Blast is facing renewed controversy after allegedly dishonestly altering Optimism's code, and Vector Reserve has launched a new token backed by liquid staking and restaking tokens.

✍️ In today’s newsletter:

  • Celsius and FTX's creditor payouts progress
  • DeFiance Capital secures win against 3AC
  • Protocol Guild rallies Ethereum teams to support development
  • Blast in hot water over codebase
  • Vector Reserve's staking derivative token



Check out our guide to launching asset-backed stablecoins using Reserve Protocol. Also watch our podcast with Mustafa Al-Bassam, CEO and Co-Founder of Celestia Labs, to learn more about modular blockchain architecture and data availability.


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Celsius Begins Asset Distributions To Customers As Court Approves FTX’s Repayment Plan

TLDR Celsius has begun distributing $3B worth of fiat and crypto to its customers. The news came on the same day that a U.S. bankruptcy court backed FTX's plan to pay $7B to its creditors.

SO WHAT The news follows the spectacular collapse of both CeFi giants during the 2022 bear trend. However, FTX creditors are unhappy that payouts will be determined based on account balances when the exchange filed for bankruptcy in November 2022.

READ MORE: Celsius Begins Asset Distributions To Customers As Court Approves FTX’s Repayment Plan


DeFiance Capital Scores Win in Singapore Dispute Against 3AC

TLDR DeFiance Capital secured a key victory in its dispute against Three Arrows Capital — the notorious failed venture capital firm. A Singapore court ruled that DeFiance Capital's $140M in assets should be separated from Three Arrows Capital's estate.

SO WHAT The ruling protects DeFiance Capital's assets from Three Arrows's liquidators as Singapore's legal system deals with the fallout from the VC firm's failure.

READ MORE: DeFiance Capital Scores Win in Singapore Dispute Against 3AC


Shell Protocol has launched its stakeable SHELL governance token. Airdrop recipients can check their eligibility through the Shell app. This token launch coincides with DeFi unifier Shell v3, which natively integrates Balancer and Curve pools in one single interface.

Shell aims to ultimately unify DeFi with a single app for NFTs and one-to-many swaps across every major protocol. Shell was created by Cowri Labs, a Hawaii-based DeFi development team, and has grown to a user base of 45,000.

Shell has received pushback from airdrop farmers for its sybil-resistant reward scheme. The SHELL token is currently trading through the Shell app. As for Cowri Labs, the team is already planning future integrations, with Uniswap and Aave on the near horizon.

Read More:


Ethereum Projects Urged To Donate 1% Of Token Supply To Support Development

TLDR Protocol Guild, a collective of core Ethereum contributors, is calling for ecosystem projects to donate 1% of their native tokens' supply to support the ongoing development and maintenance of the Ethereum mainnet.

SO WHAT Protocol Guild warns that without expanded funding, Ethereum's security and future development could become reliant on small group of underpaid developers. The guild's call-to-action has already garnered support, with EtherFi pledging 1% of its soon-to-be released token, and VanEck promising 10% of profits from its pending Ether ETF.

READ MORE: Ethereum Projects Urged To Donate 1% Of Token Supply To Support Development


Blast Accused Of Dishonestly Forking Optimism’s Code

TLDR Blast is facing renewed criticism after screenshots circulated on social media appearing to show that the team dishonestly altered Optimism's codebase and claimed it as its own. The apparently minimal changes made to Optimism's code include changing its open-source license.

SO WHAT Blast has garnered controversy from its inception in November, with the project enticing more than $1B in deposits with yield and points despite not launching its network until later this month. Further, its deposit contract is secured by nothing more than a three-of-five multisig account.

READ MORE: Blast Accused Of Dishonestly Forking Optimism’s Code


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Vector Reserve Introduces ‘Liquidity Position Derivative'

TLDR Vector Reserve launched vETH, a "liquidity position derivative" backed by a basket of liquid staking and restaking tokens. The token's collateral includes Lido's stETH, Renzo’s ezETH, EtherFi’s eETH, and KelpDAO’s rsETH.

SO WHAT The token comes amid the explosive growth of liquid restaking tokens, with the burgeoning sector amassing more than $900M TVL in a matter of months. Vector's vETH token attracted a $5.2M market cap within five days of launching.

READ MORE: Vector Reserve Introduces ‘Liquidity Position Derivative'



  • Jupiter registers nearly $1.4 billion in daily volume amid token launch (The Block)
  • Polygon Labs Cuts 19% of Staff, 60 Roles, for 'Enhanced Performance' (CoinDesk)Coinbase and Its CEO Prep ‘War Chest’ for Pro-Crypto Politicians (Bloomberg)