Research Summary
The report covers a wide range of topics in the crypto space, including DeFi news, governance proposals, and general news. Key entities include BlackRock, Grayscale, dYdX Chain, Arbitrum, Pyth Network, OKX, Jupyter Exchange, JP Morgan’s Onyx, Parallel, CowSwap, Raft Protocol, DWF Labs, Vertex Protocol, Alfred, Poloniex, Pika Protocol, Near Protocol, Polygon Labs, Filecoin, Ankr, Sushi, Raft Protocol, $ATOM, Synthetix Spartan Council, 1inch DAO, Lido DAO, Lyra DAO, Hashdex, BlackRock, China’s biggest game and board company, Taproot Wizards, Ryan Wyatt, Celsius, $FTT, Circle, Certik, Hex Trust, UBS, Fnality, HSBC, Binance, and FTX.
Key Takeaways
DeFi Developments
- BlackRock and Grayscale’s Ethereum ETF: Both BlackRock and Grayscale have filed for a Spot Ethereum ETF, with Coinbase appointed as the custodian by BlackRock. This indicates a growing institutional interest in Ethereum.
- dYdX Chain’s Beta Launch: Following the launch, it was announced that $DYDX stakers will receive all dYdX V4 trading fees, strengthening its position as a DeFi blue chip.
- Arbitrum Proposal Approval: The proposal to backfund successful STIP proposals that weren’t initially eligible for the grant was approved, with a total of 21.4M $ARB to be distributed among 26 projects.
- Pyth Network’s Retrospective Airdrop: The network increased its airdrop coverage to DeFi users with 55M additional tokens from the previously announced 200M $PYTH tokens.
- OKX’s X1 Network Announcement: OKX announced X1 Network, an ETH L2 built on Polygon’s CDK with $OKB as its native token to pay for gas fees.
Security Incidents
- Raft Protocol’s $6.7M Hack: An attacker minted uncollateralized $R stablecoin and swapped it to $ETH. However, the funds were sent to the null address, effectively burning them.
- Poloniex’s $125M Hack: The exchange, owned by Justin Sun, was hacked for $125M. Affected users will reportedly be fully reimbursed.
Partnerships and Collaborations
- DWF Labs’ Partnerships: DWF Labs partnered with multiple crypto projects such as Gala Games, Kava Chain, Polytrade Finance, and Litentry.
- Near Protocol’s Partnership with Eigenlayer: The partnership aims to create a fast finality layer for Ethereum Rollups with up to 4000x lower transaction costs.
Product Launches and Updates
- Vertex Protocol’s Liquidity Boostrapping Auction Program: The program marks the official launch of its $VRTX token.
- Alfred’s Announcement: Alfred, a Telegram bot for executing token swaps on Ethereum, was announced by a co-founder of Flashbots.
- Polygon Labs’ Polygon Village 2.0: The $100M grant program is aimed at supporting crypto startups.
Regulatory and Legal Developments
- Spot Bitcoin ETF Applications Delayed: The applications were delayed, with expectations of batch approvals by January 10.
- HSBC’s Tokenized Securities Custody Service: HSBC announced the service for institutional clients, indicating a growing acceptance of crypto assets in traditional finance.
- FTX’s Lawsuit Against Bybit: FTX sued Bybit Crypto Exchange to recover assets worth $953M.
Actionable Insights
- Investigate the Potential of Ethereum ETFs: The filings by BlackRock and Grayscale for a Spot Ethereum ETF indicate a growing institutional interest in Ethereum. This could potentially lead to increased liquidity and price appreciation for Ethereum.
- Monitor the Impact of dYdX Chain’s Beta Launch: The announcement that $DYDX stakers will receive all dYdX V4 trading fees could potentially increase the demand for $DYDX and positively impact its price.
- Assess the Implications of Security Incidents: The hacks on Raft Protocol and Poloniex highlight the importance of robust security measures in the crypto space. These incidents could potentially impact investor confidence and the price of the affected tokens.
- Explore the Impact of Partnerships and Collaborations: Partnerships such as those by DWF Labs and Near Protocol could potentially lead to synergies and growth opportunities for the involved entities.
- Consider the Effects of Regulatory and Legal Developments: The delay in Spot Bitcoin ETF applications and FTX’s lawsuit against Bybit could potentially impact the broader crypto market and specific tokens.
