🙇🏻♂️ Crypto Lawyers Unpack Contradictions and Challenges in Senate Mega-Bill
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DeFi in Washington
NO PROHIBITIONS When Sen.Cynthia Lummis (R-Wy.) and Sen. Kirsten Gillibrand (D-NY) dropped their crypto mega-bill earlier this week, crypto natives breathed a sigh of relief. There were no sweeping prohibitions or bans embedded in its 69-pages of legislation, nor draconian measures that would further damage confidence in a sector struggling to weather a grinding bear market.
INFEASIBLE Then, as everyone read the fine print, came the head-scratching. Some of its provisions appear to be “technologically infeasible,” in the words of one crypto lawyer.
CHANGES The Responsible Financial Innovation Act is the most comprehensive and important piece of proposed legislation on crypto to hit Capitol Hill to date. Even as lobbyists, lawyers, and legislators digest and analyze its measures, a bevy of potential changes have already made headlines.
COSTLY For starters, the bill would classify most cryptocurrencies as commodities, rather than securities, potentially saving the industry from the U.S. Securities and Exchange Commission’s hard line toward the industry and costly reporting and registration requirements.
Soaring Fees in Otherdeeds Land Sale Drives Community to Layer 2s
VOTE In a victory for Layer 2 blockchains, the community for ApeCoin, the governance token of the Bored Ape Yacht Club, ecosystem, has narrowly voted to not expand outside of Ethereum.
MOBILIZED Following a six-day voting period, 53.6% of members voted to stick with Ethereum exclusively. More than 7M APE tokens mobilized for the voting, equal to 2.4% of ApeCoins circulating supply.
COMMUNITY The result means the community will likely look to Ethereum’s Layer 2s such as leading rollups providers Arbitrum and Optimism, or NFT-focused Immutable X, for scalability, rather than alternative low-cost Layer 1s or its own chain.
DeFi Saver, a fan-favorite app for creating, tracking, and managing Ethereum DeFi positions, is now live on two leading optimistic rollup networks: Aribtrum and Optimism.
Having provided users with liquidation protection and innovative management features for a growing number of lending protocols on the mainnet ever since 2019, DeFi Saver is now looking to provide their power tools to a broader audience on much more accessible L2 networks.
To kick things off, they’ve prepared a full-fledged Aave v3 dashboard on both networks, with their signature 1-tx leverage management options, while liquidation protection options are currently in the works. For users who’ve never moved funds from the mainnet, there’s also a new Bridging dashboard powered by a DEX and bridge aggregator LI.FI.
Note that the beloved Simulation mode is also available on all networks and lets you test and verify any actions before making the final decision.
Check out this essential piece of anyone’s DeFi toolkit on Arbitrum and Optimism today at DeFiSaver.com.
By Jason Levin
MOBILE It’s 2022 and your mobile carrier might be going crypto. There is a growing movement around building crypto-incentivized peer-to-peer mobile networks.
HOTSPOTS “What if we put Bitcoin mining in IOT hotspots to provide coverage?” a Helium engineer asked half a decade ago. As of June 2022, Helium now has 845,000+ hotspots around the globe providing data coverage in 63,000+ cities. Originally founded in 2013 with the goal of building a decentralized on-ramp to the internet, Helium launched its own blockchain and HNT token in August 2019.
SENSORS To earn the HNT token, users can install a WiFi hotspot created by manufacturers in the Helium ecosystem. Like the Ethereum network, companies can build applications on top of the Helium blockchain with use-cases ranging from smart agriculture sensors to supply chain sensors.
A Month of Manic Mints is the Focus of The Defiant's Inaugural Weekly NFT Dispatch
GLOBAL MARKET Non-fungible tokens, or NFTs, are so hot right now. Still. In the last 18 months Bored Apes and Mutant Apes and Art Blocks wonders and Space Doodles have come out of nowhere and formed a global market with an estimated $40B traded in 2021.
PHENOMENON While there’s been a slow down in the grinding bear market of 2022, the space continues to leap forward at breakneck speed, with new trends popping up (and dying off) every other week. If that’s not a cultural-technological phenomenon then what is?
ZANY We at The Defiant thought it was high time to chronicle the madness with a weekly column. We want to take aim at all the good, bad, and downright zany developments in NFT land.
By Samuel Haig
NEWS Ethereum has completed The Merge on a public testnet for the first time, comprising a major milestone in its roadmap towards Proof-of-Stake.
CONSENSUS On June 8 at 1210pm ET, Ropsten transitioned from Proof-of-Work consensus to Proof-of-Stake, unifying the testnet’s existing execution layer with the Ropsten Beacon Chain’s PoS consensus layer.
LIVESTREAM Ethereum developers celebrated the Merge on a livestream hosted by ETHStaker and will now monitor the blockchain for any inconsistencies.
OFFLINE Osmosis, a decentralized exchange in the Cosmos ecosystem, was taken offline on Jun. 8 after hackers drained an estimated $5M from its liquidity pools.
STOLEN Osmosis co-founder Sunny Aggarwal said four attackers were responsible for stealing at least 95% of the money. Two have already said they will return the money they had stolen, Aggarwal added.
BUG Osmosis, an inter-chain automated market maker, had approximately $212M in total value locked as of Wednesday afternoon. The hackers exploited a bug in Osmosis, according to posts from a moderator in the project’s Discord.
By Owen Fernau
A wallet containing 20M OP, the governance tokens of Ethereum Layer 2 scaling solution Optimism, has been exploited. The exploit was disclosed by the Optimism Foundation on Twitter.
The foundation employed Wintermute, a market maker, to provide initial liquidity for OP. Deeper liquidity means less volatility, and so Optimism loaned Wintermute the 20M OP as part of a deal to smooth the launch of the OP token.
Wintermute confirmed that it had received two test deposits to its Optimism wallet, after which the Optimism Foundation sent the full 20M OP tokens. At this point, Wintermute discovered that they couldn’t actually retrieve the tokens, because the market maker hadn’t yet deployed what’s called a Gnosis Safe to their address on Optimism.
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Anchor protocol was originally designed to offer an interest rate of 3.6%, but this was dialed up to 20% just a week before release to attract more investors, a core developer alleged in an interview with Korean media outlet JTBC.
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🔗 South Korea Investigates Terra Labs for Alleged Bitcoin Embezzlement Following UST Collapse: Report: CoinDesk
South Korean law enforcement agencies are investigating Terraform Labs following last month's collapse of their controversial algorithmic stablecoin, TerraUSD (UST), according to a report by the Financial Times.
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Digital Fashion and Identity in The Metaverse With The Fabricant Co-Founder Adriana Hoppenbrouwer-Pereira is the co-founder and CMO of The Fabricant, a digital fashion house for the metaverse founded in 2018.
This has been a rough year for DeFi, with large sums of capital being withdrawn from most of the sector’s top protocols. Even so, liquid staking providers are among the few DeFi projects to post consistent growth.
New Scam on Opensea: How to Not Get Rekt There is a new type of scam emerging on OpenSea. In this video we’ll show what behind it and how to avoid getting rekt.
🧑💻 ✍️ Stories in The Defiant are written by Owen Fernau, Samuel Haig, Jason Levin, DeFiDad, Aleksandar Gilbert, and yyctrader, and edited by Edward Robinson, yyctrader, and Camila Russo. Videos are produced by Robin Schmidt, Alp Gasimov and Daniel Flynn. Podcast is led by Camila, edited by Alp.
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