Research Summary
This report covers a range of developments in the digital asset space. Key topics include a governance proposal by Maker to double T-Bill allocation, the hacking of HTX and Mixin Network, MicroStrategy’s acquisition of additional Bitcoin, the upcoming Celestia airdrop, Circle’s plan to launch USDC on Polygon, the launch of a non-custodial wallet service by MoneyGram, Binance’s reopening in Belgium and burning of $wBETH, and the performance of various digital assets.
Key Takeaways
Maker’s Governance Proposal
- Debt Ceiling Adjustment: A poll has been posted to Maker’s governance board to reactivate the Debt ceiling instant access module, which would allow users to adjust the debt ceiling of their real world asset vaults within constraints. If successful, this would double Maker’s allocation to T-bills, resulting in a significant increase in Maker revenue.
- Impact on MKR: The proposal could lead to a large MKR buyback and LP, given that the Smart burn engine has already bought back and LP’d 11,802 MKR.
- Next Steps: If the poll is successful, it will move to an executive vote.
Security Breaches
- HTX Hacked: HTX was hacked for $8 million worth of ETH. The exchange has covered the losses and continues to operate as usual. HTX has identified the hackers and offered a $400,000 white-hat bounty and a job as a security advisor to incentivise the return of the stolen ETH.
- Mixin Network Hacked: Mixin Network was hacked for $200 million. The founder has stated that they can only guarantee 50% of user assets and are considering launching bond tokens for the rest. The hack was blamed on the compromise of a third-party cloud database.
Asset Acquisitions and Airdrops
- MicroStrategy Acquires More Bitcoin: MicroStrategy has purchased an additional $149 million worth of Bitcoin, bringing their total Bitcoin holdings to 158,245 BTC, equivalent to $4.68 billion.
- Celestia Airdrop: Celestia, a modular blockchain network, has announced their upcoming Genesis drop which will distribute 60 million $TIA to eligible addresses. $TIA will be used by developers to pay for blobspace on Celestia’s chain and for governance of the network.
Platform Developments
- Circle to Launch USDC on Polygon: Circle will be launching native $USDC on Polygon, replacing bridged $USDC which has facilitated $475 billion in volume across 230 million transactions on the Polygon chain.
- MoneyGram Launches Wallet: MoneyGram will be launching a non-custodial wallet service leveraging stablecoin technology. The service is set to release in the first quarter of 2024.
- Binance Reopens in Belgium: Binance has re-opened access to their exchange for Belgian users through the entity, Binance Poland. Binance has also burned $500 million of $wBETH.
Actionable Insights
- Monitor Maker’s Governance Proposal: The outcome of the proposal could have significant implications for Maker’s revenue and the value of MKR.
- Review Security Measures: The hacks of HTX and Mixin Network highlight the importance of robust security measures in the digital asset space.
- Investigate the Potential of Celestia: The upcoming airdrop could increase interest in Celestia and its native token $TIA.
- Consider the Impact of Platform Developments: The launch of USDC on Polygon, the introduction of MoneyGram’s wallet service, and Binance’s reopening in Belgium could influence the dynamics of the digital asset market.
