The Defiant

Loading...

💣Potential CRV Liquidations Threaten DeFi Lenders

The Defiant

DeFi Daily

Together with

Together with

GM Defiers!

DeFi lending markets are on edge as the founder of Curve looks to stave off potential liquidations. Meanwhile, the SEC has filed a lawsuit against crypto-entrepreneur Richard Heart and his enterprises alleging misuse of investor funds.

We also unpack the effects of Litecoin's third block reward halving event and what this means for its miners and the overall network. Finally, USDT issuer Tether continues to profit from its massive holdings of US Treasury Bills.

✍️ In today’s newsletter:

  • Curve founder scrambles to shore up CRV-backed loans
  • SEC goes after Richard Heart
  • Litecoin completes third halving
  • Tether reports $850M Q2 profit

📈 Markets in last 24 hrs:

TickerValue24h
BTC$29,233 -0.15%
ETH$1,857 -0.25%
S&P 500$4,577 -0.27%
GOLD$1,941 -1.51%
Arch WEB30.90pts +0.57%
FINANCE0.97pts 1.21%
INFRA0.81pts 0.23%
CONSUMER1.03pts -0.63%
Arch WEB3

Learn more about Arch Indices here.

🎬 WATCH

Watch our video on the SEC's lawsuit against Richard Heart and HEX. And check out our podcast with Aya Kantorovich, the co-CEO and co-founder of Fractal.


THANKING OUR NEWSLETTER SPONSORS

| Newsletter continues below |

Welcome to a new era of Ethereum scalability. Build faster, more user-friendly Ethereum dapps with Linea's developer-ready zkEVM rollup. Explore 100s of partner creations and start your own journey today at linea.build

Bumper’ your assets to defend them from price drops without losing upside exposure. Smarter than a stop loss, cheaper than options, protocol going live in August.

Stader's ETHx is now live on mainnet. Designed to keep Ethereum decentralized by being accessible, reliable and rewarding. Stake now and PowerUp your ETH with ETHx.


DeFi Lending

Large CRV-backed Loans Threaten to Destabilize DeFi

TLDR Michael Egorov, co-founder of Curve Finance, has over $90M in outstanding loans across DeFi lending platforms, backed by CRV tokens. The recent exploit of the Curve exchange and the ensuing price drop of CRV has put Egorov's positions at risk of liquidation if prices fall much further. He has been selling off significant amounts of CRV and created a new incentivized pool on Curve to reduce the utilization of FRAX lent against CRV on Fraxlend.

SO WHAT Egorov's predicament underscores the need for effective risk management strategies from DeFi lending protocols when dealing with relatively illiquid collateral assets like CRV.


SPONSORED POST

DeCommas Introduces Mission Control API for Web3 Developers.

DeCommas has been building Web3 and DeFi products since 2021, launching products like defi Strategies, cross-chain swap, portfolio-tracking and recently the revolutionary “Pathfinder feature”. In order to realize these tools a tremendous web3 toolstack has been developed. Today, DeCommas is announcing it’s making these tools available to Web3 builders across the globe!

DeCommas’ “Mission Control API” is a developers toolstack that offers a wide range of capabilities web3-, web3-curious and web2 developers build a multitude of web3 applications and features, such as portfolio trackers, web3 searchbars, asset swap features and activity feeds.

With response times under 250ms and a free tier allowing for up to 10,000,000 Computing Units the API is both the fastest and the most cost-efficient option available

Get free access, read documentation or learn more about Mission Control here: https://build.decommas.io/


Regulation

SEC Alleges Richard Heart Used Investor Funds To Fuel Shopping Spree

TLDR The SEC has filed a lawsuit against Richard "Heart" Schueler and his crypto startups, Hex, PulseChain, and PulseX, alleging multiple unregistered securities offerings amounting to over $1 billion. The SEC accuses Heart of using investor funds for personal luxury purchases and manipulating the market through 'recycled' transactions.

SO WHAT This case underscores the growing regulatory scrutiny in the crypto industry and signals the SEC's ongoing commitment to enforce securities laws in the crypto space.


Markets

Litecoin Completes Third-Ever Block Reward Halving

TLDR Litecoin, one of the earliest blockchain networks, has completed its third block reward halving. This event has reduced the mining reward from 12.5 to 6.25 LTC for every block. Although LTC saw a slight dip following the event, it had rallied 30% in the six weeks preceding the halving.

SO WHAT This halving event underscores the built-in deflationary mechanisms of cryptocurrencies, aimed to curb inflation and potentially spur price appreciation. The event also sets the stage for a transition in Litecoin's network from block rewards to transaction fees as a primary incentive for miners, which could impact its future security and performance.


Stablecoins

Tether Reports $850M Profit In Second Quarter

TLDR Tether, the issuer of the USDT tablecoin, reported $850M in profits for Q2, largely from its Treasury bill holdings, which constitute about 64% of its assets. Despite the bear market, Tether has seen a robust year, with the circulating supply of USDT up 27% to $83.8B.

SO WHAT While Tether's financial growth appears strong, it's worth noting a few contentious points. The company's cash reserves have significantly dwindled, raising concerns among some critics. Although the company is making profits and expanding its investments, the lingering concerns about transparency and the solidity of its reserves could impact its future standing in the crypto market.


🔎 OUR REPORTERS ARE WATCHING


🌍 ELSEWHERE

  • Gaming Giant Bandai Namco Launches AI Virtual Pet NFT Game ( Decrypt)
  • Beeple Goes Punk With $208K NFT Purchase ( Coindesk)
  • MicroStrategy’s Saylor Expects to Retain Appeal Even If Bitcoin ETF Is Approved ( Bloomberg)