🏦 MakerDAO Members Vote On $100M DAI Vault for Bank
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By Samuel Haig
VOTE The MakerDAO community is voting on whether to provide a DAI vault to Huntingdon Valley Bank, a 151-year-old lender in Pennsylvania with $500M in assets.
VAULT A governance proposal for the vault went live on July 4 and will close on July 7. If passed, the vault will enable the bank to draw up to 100M DAI to support existing and new operations.
VERDICT Just 15 voters have cast a verdict so far, with 78% of votes currently in favor of providing the vault to Huntingdon Valley Bank. The proposal is the latest move in MakerDAO’s pivot to embrace real-world assets (RWAs), with the project seeking to diversify its exposure beyond overcollateralized loans taken out against digital assets.
STRATEGIES The proposal comes one day after the Maker community voted to allocate 500M DAI across various RWA investment strategies, with voters backing an 80% allocation to U.S. Short Term Treasuries while 20% will be injected into Investment-Grade Corporate Bonds.
By Samuel Haig
NEWS The decentralized exchange SushiSwap is partnering with blockchain-based carbon credit protocol, KlimaDAO, to allow traders to offset their carbon emissions on the Polygon network.
SUPPORT A SushiSwap governance proposal outlining the partnership closed on July 4 with more than 99% of voters pledging support. The proposal paves the way for Sushi users to offset their carbon footprint via an optional toggle that will be integrated in the exchange’s user interface.
ON-CHAIN KlimaDAO launched on Polygon in October 2021. Its native Base Carbon Tonne (BCT) tokens represent carbon offsets that have been removed from the traditional carbon market and migrated to Klima’s treasury on-chain, with the project bringing more than 18M metric tonnes (19.8M tons) of carbon on-chain.
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PURCHASE FTX, the second-biggest cryptocurrency exchange by trading volume, has signed an option to purchase crypto lender BlockFi for as much as $240M, BlockFi CEO Zac Prince said Friday.
APPROVAL The agreement, which Prince said was signed Thursday, is subject to shareholder approval and would also grant BlockFi a $400M credit line. The deal gives FTX “an option to acquire BlockFi at a variable price of up to $240M based on performance triggers.”
TRIGGERS Prince did not say what those triggers were in a Twitter thread announcing the agreement. As crypto platforms buckle under the pressure of a collapsing market, Thursday’s move may calm BlockFi customers worried the firm would be the next to fall.
By Claire Gu
WINTER It’s no secret that crypto markets can be brutal. In 2018, Bitcoin cratered 80%, and many lesser-known projects didn’t survive. For the next two years, the market endured a crypto winter.
CYCLICAL Forget trying to predict these severe downturns. Timing the market has long been a fool’s errand. It’s wiser to accept the cyclical nature of the market and prepare for a bearish period. To learn how, we draw lessons from the past in the second installment of our Surviving a Bear Market series of guides.
EXPLODED After spending years on the fringe of the financial world, the cryptomarket exploded in 2017 and its market capitalization multiplied 46 times, reaching $829B in January 2018. But that month it suddenly crashed and lost 70% of its value in four brutal months.
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Crypto lender Nexo has started a process to potentially acquire rival Vauld after the latter abruptly halted customer withdrawals on Monday.
American-Israeli crypto lender Celsius laid off some 150 employees as it battles a financial crisis that saw it halt customer withdrawals last month, Calcalist reported over the weekend.
HTC launched metaverse phone “Desire 22 Pro” on Tuesday, which comes with a digital assets wallet and virtual reality (VR) headset pairing feature, as part of the Taiwanese firm’s Web3 expansion.
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Crypto Broker Voyager Suspends Withdrawals and Trading After 3AC’s Loan Default Voyager, a crypto broker, has suspended withdrawals, trading, deposits and loyalty rewards from its app following Three Arrows Capital’s default on its loan.
FTX Reaches Deal to Acquire BlockFi for Up to $240M as CeFi Lenders Buckle Under Market Pressure FTX, the second-biggest cryptocurrency exchange by trading volume, has signed an option to purchase crypto lender BlockFi for as much as $240M, BlockFi CEO Zac Prince said Friday.
Polygon and Fantom Services Restored After Phishing Attack Blockchain networks Polygon and Fantom suffered a DNS attack Friday that directed users to malicious websites created to steal the keys to their digital wallets.
🧑💻 ✍️ Stories in The Defiant are written by Owen Fernau, Aleksandar Gilbert, Claire Gu, Samuel Haig, Jason Levin, and yyctrader, and edited by Edward Robinson, yyctrader and Camila Russo. Videos were produced by Robin Schmidt and Alp Gasimov. Podcast was led by Camila, edited by Alp.
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