Can the DeFi Crisis Be Contained? 😰

In today's edition: 👨‍⚖️ Court greenlights subpoena against FTX, 🙅 CZ's failed attempt, 👀 SBF's battle for bail, and more!

August 02, 2023

Dive into Overtime, explore your onchain web3 sportsbook. 40+ leagues. Token rewards. Smart contract security. Join thousands and get in the game today.

What’s Poppin’?

by Samyuktha Sriram

Some DeFi traders have come together to buy up CRV tokens from the Curve founder via OTC deals, while others continue to hunt his positions.

Binance.US’ board of directors reportedly could not come to a unanimous decision in favor of liquidating the U.S.-based crypto exchange.

Lawyers for the former FTX CEO argued that the government assertions that he tampered with a witness relied on innuendo, speculation and scant facts.

A judge has granted Terraform Labs permission to access documents in the custody of FTX and its related entities to prepare a defense against a lawsuit from the SEC.

On the Pod…

Show highlights:

  • why Chris and Jake believe that the SEC’s lawsuit against Coinbase is bullish for the industry

  • how institutions have been building during the bear market

  • whether Worldcoin solves the sybil resistance problem in crypto and whether it could become more decentralized than Bitcoin

  • Jake’s response to the criticism surrounding the centralization and privacy issues in Worldcoin

  • the ethical implications of giving free money to people who may not fully understand how their biometric data is being used

  • what the Composite Ether Staking Rate (CESR) is and what are its two main applications

Daily Bits…✍️✍️✍️

  • 📝 Creditors of FTX expressed dissatisfaction with a draft reorganization plan, stating they weren't consulted about it, potentially leading to extended bankruptcy proceedings.

  • 👥 Kyle Davies, cofounder of Three Arrows Capital, claimed he renounced his US citizenship and asserts that U.S. courts no longer have jurisdiction over him amidst a bankruptcy case.

  • 📊 Despite the crypto ban, China is Binance's largest market, accounting for 20% of its global volume.

  • 🔎 An analyst from Wintermute found potential links between Alameda Research and the developer of the Bald memecoin, amid the coin's suspected "rug pull" event.

  • 🚫 Kenya's interior ministry temporarily halted the local operations of the crypto project Worldcoin due to concerns about public safety risks.

  • 👨‍💼 Justin Sun, the founder of Tron, intervened to prevent a potential bad debt situation tied to Curve Finance founder Michael Egorov, by purchasing about 5 million CRV tokens from Egorov's wallet in an over-the-counter transaction.

  • 💰 Egorov initiated a new liquidity pool on his decentralized exchange to help manage his significant loan from FraxLend, backed by the Curve token (CRV), potentially alleviating the market concerns around a potential bad debt situation.

  • 🔒 Due to the potential systemic risk posed by Egorov's borrowing habits, various DeFi protocols are taking active measures to protect themselves.

  • 🔐 Risk management firm Gauntlet suggested that Aave should halt borrowing against curve (CRV) tokens to prevent an ongoing DeFi ecosystem crisis.

  • 🌍 US Democratic presidential candidate and environmental advocate, Robert F. Kennedy Jr., suggests the environmental criticisms against Bitcoin shouldn't obstruct transaction freedom.

  • ⚠️ LeetSwap, operating on Coinbase’s Layer 2 blockchain Base, suspended trading following the extraction of 340 ETH, equivalent to $630,000, from its liquidity provider pairs, prompting an investigation into potential security breaches.

  • 📉 K33 Research indicates that Bitcoin's volatility is at a five-year low, even lesser than traditional assets such as the Nasdaq, S&P 500 and gold, forecasting a forthcoming dramatic fluctuation in price.

  • 🔄 Binance Japan started welcoming users to its new platform, offering features such as spot trading, earn products, and an NFT marketplace.

Today in Crypto Adoption...

  • 🏎️ As part of a partnership with the Williams Racing team, crypto exchange Kraken unveiled promotional sweepstakes where winners can select NFTs to be displayed on Formula 1 cars during the U.S. Grand Prix in October.

What Do You Meme?

Learn 🤓

Learn what Profile Picture (PFP) NFTs are, how they work, and how they differ from other types of non-fungible tokens.

📈 Your Market Update 📉

  • BTC is up 2.1%, trading at $29,522

  • ETH is up 1.3%, trading at $1,858

  • BTC dominance: 46.71%

  • Crypto market cap: $1.23 trillion

*All data as of today, 7:00 am ET

Recommended Reads

ICYMI: On Unchained Premium 💎

⛓️ Join Unchained Premium to get access to:

  • 🎙️ Behind-the-scenes interviews, in which I talk with crypto experts and entrepreneurs to learn all about the latest developments in the industry.

  • 💬 A subscriber-only Telegram group, where you can talk with the other members of the Unchained community, build a network in crypto, and talk directly with me and the Unchained team!

  • 📰 Transcripts of all the shows, for subscribers only.

If You Like What You Read: