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Cryptocurrency exchange Coinbase acquired a minority stake in Circle Internet Financial, causing the dissolution of their Centre Consortium venture, responsible for issuing USD Coin (USDC). Despite this, Circle plans to continue in-house issuance and governance of USDC, which is expanding its support network to include six additional blockchains. Notably, no cash was involved in the transaction between Coinbase and Circle.

Michael Egorov, founder of DeFi protocol Curve, employed a strategy to settle his extensive obligations on Aave. He deposited millions of CRV as collateral on a lending platform, and borrowed Curve’s crvUSD stablecoin, which he exchanged for USDT to clear his Aave debt. Despite significant outstanding debt across several DeFi platforms, Egorov has been proactive in lessening his debt and usage rate.

“Michael Egorov, founder of Curve Finance, reduced his debt to $42.7M through repayment on Aave’s DeFi platform and other key protocols. Despite the near $100M debt risk and a $47M loss from a security vulnerability that caused a CRV token price crash, Egorov continued to decrease his debt, offering a cautionary tale on DeFi debt and blockchain security risks.”

“In response to a $62 million hack, Curve Finance is assessing each impacted user for potential reimbursement. In contrast, the DeFi protocol Zunami Protocol suffered a $2.1 million loss via an attack on its ‘zStables’ pools. On a positive note, ConsenSys launched its Ethereum scaling rollup Linea, bridging over $26 million in ETH.”

“USDT, a widely used stablecoin, saw a significant discharge from crypto traders’ wallets, especially on Curve Finance and UniSwap exchanges. This event caused USDT’s price to drop below its usual $1 peg. This indicates that under certain circumstances, investors may prefer holding DAI or USDC rather than USDT.”

After an exploit saw Curve’s native token CRV plummet, market makers at Binance upped their buy orders within 2% of the mid-price from 500,000 to over 1 million CRV. This unusual response to a falling currency is seen by many as a strong supporting move that may have prevented widespread fallout in the decentralized finance market. Despite this, CRV fell by over 14%, sparking alarm across the sector.

“The DeFi segment suffered a setback when Curve Finance, an Ethereum-based decentralized exchange, was hacked, leading to a 20% price drop in its token (CRV). Founder Micheal Egorov’s substantial loans backed by CRV triggered a panic-induced price drop. However, Egorov’s partial loan repayments and an intriguing pattern in the derivatives market suggest a potential near-term rally for CRV.”

Michael Egorov, creator of Curve, has introduced a new liquidity pool, crvUSD/fFRAX, on his decentralized exchange to mitigate potential debt crisis and repay a curve token (CRV)-backed loan. The pool, bolstered with 100,000 CRV rewards, is aimed at decreasing the utilization rate to prevent unsustainable interest charges, attracting more liquidity into the system and providing respite from daunting debt levels.

“MEV rewards for Ethereum validators surge after an exploit on Curve Finance triggers a torrent of transactions on the blockchain. The increased transaction rate, due to concerns about crypto asset safety, leads to higher transaction fees and a subsequent rise in MEV, a form of gain from rearranging or adding transactions in a data block.”

Curve DAO’s governance token CRV suffered a 12% drop as founder Michael Egorov took risky loans on Aave, depositing 431 million CRV and borrowing $101.5 million stablecoins. A $107 million liquidation threat looms if CRV falls below $0.37, sparking a proposal to freeze Egorov’s loans and prevent further CRV loans. The negative bets on CRV create an opportunity for a potential quick upside move.

Tether (USDT) experienced a slight depegging from its 1:1 ratio with the US dollar, coinciding with AAVE’s decision to freeze Curve (CRV) use as collateral for loans. This prompted whales and investors to capitalize on arbitrage opportunities, leading to Tether’s depegging at $0.996.

Tether’s USDT stablecoin lost its dollar peg, leading to an imbalance in stablecoin trading pools as traders exchanged USDT for USDC and DAI. This resulted in USDT balances on Curve’s 3pool rising to over 70%, straying from the intended equal distribution among the three stablecoins.

Whales offloading substantial amounts of Tether (USDT) have caused a surge in its dominance within the Curve 3pool liquidity pool, raising concerns about the stablecoin’s stability and potential USDT depegging. This recent sell-off significantly impacts the pool’s composition and sparks apprehension regarding Tether’s long-term trustworthiness.

Millions worth of USDT stablecoins sold off on Uniswap and Curve pools, raising concerns among traders and suggesting a preference for DAI and USDC over Tether. This could indicate a diverse and competitive stablecoin market, benefiting users while reflecting potential regulatory concerns.

Speculation mounts that Tether’s USDT stablecoin may be under pressure, with liquidity pools on Uniswap and Curve protocols flooded with USDT sellers. A potential USDT depeg could be catastrophic for the crypto economy, raising concerns over its liquidity and stability amidst growing market share.

Coinbase has increased its debt repurchase initiative to $180 million indicating financial strength, despite reporting a net loss of $430 million in Q1 2022. Meanwhile, Visa expands its support for USDC settlements on Solana blockchain, potentially revolutionizing cross-border transactions despite potential risks.

Despite substantial withdrawals from the DeFi sector and major crypto exchange meltdowns, Ethereum staking through platforms like Lido and Coinbase has surged. However, the value locked in DeFi protocols has dropped significantly from a peak of $178 billion in November 2021, to under $38 billion today. Staking services are becoming increasingly attractive to investors due to potential profitability and decreased protocol risks.

A $10 billion injection possibly from crypto whales propelled a 1% Bitcoin surge, sparking speculation. Analysts suggest these moves might be influenced by Jerome Powell’s monetary policy hints amid inflation concerns. A significant BTC purchase linked to Robinhood suggests a shift in investment dynamics, impacting both market vulnerability and retail investor influence.