A version of this article appeared in Us Decentralization Newsletter on August 13. Sign up Here.
GM, Tim Here.
Here's what caught my DeFi-eye recently:
Why a MakerDao Advisor Worries About Wrapped Bitcoin The reason is that Coinbase's Cbeth supply has dropped by $2.4 billion. Athena extended her synthetic dollar to Solana.Wrapped Bitcoin concerns
MakerDao advisor BA Labs has warned that an upcoming change in management for wrapped Bitcoin, or WBTC, poses a serious threat to the protocol.
On August 9, the owner of WBTC was BitGo Announced The crypto custody platform plans to transfer production control to a joint venture with Bit Global.
BA Labs concern? The change comes with links to Tron founder Justin Sun.
BA Labs addresses the situation with dollar stablecoin Truus.
In 2023, Chinese conglomerate Tecterix took control of TrueSD. A lot has gone wrong since then. So far:
Join the community to get our latest articles and updatesTruesed's previous management team has resigned. It has stopped its real-time proof of reserve. Its liberation has seen many dipegs caused by service interruptions.The Sun has denied any involvement with Truesed or TextTex.
Batgo CEO Mike Belshe responded to concerns over Surya's involvement.
“He was not on Bit Global's management team, nor did he have access to key material. But he was physically involved,” Belshey said.
BA Labs Proposed That manufacturer and its lending protocol Spark will take immediate steps to limit the growth of WBTC exposure.
If BitGo cannot prove that WBTC will be secure, BA Labs said, it will consider recommending the asset entirely to the manufacturer.
WBTC is a version of the top cryptocurrency that can be used in DEFI.
Users can deposit Bitcoin to receive an equivalent amount of WBTC on Ethereum, Tron, or one of the many other blockchains.
There is $9 billion worth of WBTC in circulation.
MakerDAO still has time to discuss the issue.
The transfer of control from BitGo to Bit Global will not happen until October 8.
Cbeth Redemption of 2.4 billion CBETH
Defi sleuths have long wondered why Coinbase's liquid-staking token—Sibeth—has plunged more than 50% in recent months.
Despite the concerns, the answer may be quite mundane: a planned infrastructure upgrade implemented in June.
“We have updated the total reserve pool volume to streamline our infrastructure,” a Coinbase spokesperson said. News.
“The decrease in cbETH supply is an intentional result of these updates.”
What happened is that Coinbase changed the way it calculates the staked Ether backing for Cbeth.
As such, Coinbase felt it necessary to adjust the token supply.
“The new total supply figure is now closer to the circulating supply, in line with market liquidity requirements,” a Coinbase spokesperson said.
Extends to Athena Solana
Solana users can now create Athena's USDE synthetic dollar with Sol tokens.
The USDE's latest initiative to increase its $3 billion supply is part of Athena's mission to be a major player in the stablecoin market.
says Guy Young, founder of Athena News This action will facilitate an additional $600 to $900 million in USDE creation.
Extending USDE to another backing asset also helps spread the risk of something unforeseen happening to one asset, Young said.
It is not without risk.
Athena has chosen LayerZero Crypto Bridge to facilitate cross-chain USDE transactions to and from Solana.
The bridges between Ethereum and Solana have been attacked before.
In 2022, the wormhole crypto bridge connecting Ethereum and Solana was hacked for $326 million, contributing to 8 1.8 billion bridge hacks that year.
Weekly data
LayerZero's Stargate Crypto Bridge processed 31.3 billion worth of transactions last month, amid an increase in bridge activity.
USDC stablecoin issuer Circle's cross-chain transfer protocol came in second with just under 2 1.2 billion.
Cosmos' inter-blockchain communication protocol has processed approximately 50 850 million.
This week on DeFi Governance
Vote: ARB holders will soon be able to stake their tokens
Vote: Jupiter will reduce the JUP token supply by 30%
Vote: For Uniswap Gnosis chain, 000 votes on 250,000 onboarding package
Post of the week
It's official: Betting on the newly created Solana Memecoins has terrible odds.
Only 1.4% of those created on pump.fun are on decentralized exchanges. Of those, 0.6% have a long time to be listed on Koingeco.
Pumpfun Gambling is the worst odds from any gambling game. Casino lol .1.4% bot to go tokens. pic.twitter.com/kCf9rUOJhb
— Bastille (@BastilleBtc) August 11, 2024Pumpfun Gambling is the worst odds from any gambling game. Casino lol .1.4% bot to go tokens. pic.twitter.com/kCf9rUOJhb
— Bastille (@BastilleBtc) August 11, 2024What we see
Over 70% of Cardano nodes have been upgraded to the latest software version, meaning the network is ready to launch its Chang Hark fork.
Chang will transfer control of the $11 billion blockchain to ADA holders.
Got a tip about DeFi? arrive at [email protected].
Related TopicsMakerJustin Sun
