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Your DeFi Liquidity Just Woke Up

If you've provided liquidity in DeFi, you know the structure. You deposit tokens into a pool, the pool holds them whether swaps come or not, and the risk stays yours either way. 

1inch Aqua is built differently. It's a shared liquidity layer where tokens stay in your own wallet and one balance backs many positions across pairs and chains. Nothing is deposited. Tokens move only when a swap fills, and a swap your balance can't cover reverts. Aqua has been open to developers since November and audited by six independent firms. 

Providing liquidity carries risk and fees are not guaranteed.

See how shared liquidity works at 1inch.com/aqua.

The SEC proposed Regulation Crypto Assets on Tuesday, its first major rulebook written specifically for crypto offerings, days after canceling the meeting where it planned to unveil it. Two exemptions from Securities Act registration would let issuers raise up to $5 million over four years, or up to $75 million every 12 months with audited financials and ongoing reporting.

The proposed rule also contains a conditional safe harbor. An issuer that certifies it has completed or permanently ceased the managerial efforts it promised investors could have the investment contract deemed to no longer exist, pulling the token out of the definition of a security. State registration rules would be preempted too.

Comments are due 60 days after the proposal hits the Federal Register.

Paul Atkins was clear that this does not replace legislation. The Clarity Act faces a procedural vote in mid-September.

The Financial Accounting Standards Board proposed on Tuesday that stablecoins meeting three tests can sit on corporate balance sheets as cash equivalents, alongside Treasury bills and commercial paper. The token needs an on-demand redemption right directly with the issuer for a known dollar amount, reserves of at least one-to-one in short-term liquid assets, and annual disclosure of what backs it.

The definition of a cash equivalent would not change. FASB is adding illustrative examples so companies stop reaching different conclusions about the same token.

Comments close Nov. 19, and the board will set an effective date afterward. Treasury proposed its GENIUS Act rules a day earlier, so the plumbing and the accounting are moving in parallel.

Citi put a name on its crypto custody plans Tuesday, unveiling Custody+ and disclosing that it expects to go live with digital asset custody later this year, starting with bitcoin. There is still no launch month, no client tier, and no detail on how the bank will hold or insure keys.

The rest of the release is traditional custody plumbing. Citi said more than 80% of its total event volume now processes in real time, voluntary corporate action processing times have fallen by as much as 92%, and the business covers over 100 markets. 

Only bitcoin is in scope at the start, which leaves ether and the rest of the institutional ETF complex outside on day one. BNY already offers crypto custody.

Metaplanet is taking its bitcoin treasury playbook to Nasdaq. The Tokyo-listed company agreed Tuesday to contribute 2,100 BTC, worth about $132.1 million, plus $2.5 million in cash to Super League Enterprise for 44.9 million shares at $3.00 each, preferred stock and warrants. Super League becomes Superplanet and trades as SUPA after closing, with Metaplanet holding roughly 95.7% of the common.

Super League shares jumped as much as 140% from its previous close before settling to close 50% higher. Metaplanet briefly spiked about 4% before shedding all its gains.

The structure is the pitch. Metaplanet used its own bitcoin rather than discounted outside capital, locked its shares up for five years, and ranked its entire position behind any preferred stock Superplanet issues later. It can put in another $210 million through a junior preferred subscription right. Closing is expected in the fourth quarter, subject to a Super League shareholder vote.

No livestream today — we're taking a pause to get you a double header you don't want to miss. Tomorrow, Erik Voorhees and Marc Zeller join Kain Warwick and Taylor Monahan on Uneasy Money, and Arthur Hayes makes an appearance on Unchained.

Tune in tomorrow starting at 4pm ET.