State Regulator Takes Control of Signature Bank, Federal Regulators Guarantee Deposits (2 minute read)
On Sunday, regulators seized crypto-friendly Signature Bank to protect depositors, and federal banking regulators also appointed a receiver. This action was similar to the action taken with Silicon Valley Bank on Friday. Regulators issued a joint statement guaranteeing full return of both SVB and Signature Bank customer deposits without taxpayer losses and made an emergency lending backstop available for banks in the event of similar deposit runs. The actions were taken to reduce any spillover effects, and the federal government stressed it was not a bailout. Crypto prices rallied sharply on the news after a tumultuous weekend. |
Stablecoin Issuer Circle Reveals $3.3 Billion SVB Exposure (4 minute read)
USDC, the second-largest stablecoin in crypto, fell well below its intended $1 peg to as low as $0.815 early Saturday following the rapid collapse and seizure of Silicon Valley Bank and Circle's disclosure that they had $3.3 billion of the stablecoin's $40 billion reserves deposited there. Smaller stablecoins such as DAI and Pax Dollar also fell from their pegs, but Tether held at $1. Reacting to the selloff, Coinbase temporarily paused the conversion of USDC into US dollars during the weekend. Circle's management team announced late Sunday evening that 100% of the Company's deposits from SVB are secure and will be available today. |
Brave Browser Now Lets Users Sell Crypto Within the Wallet (2 minute read)
Brave, a privacy-focused web browser, rolled out a new feature on Friday that enables users to buy and sell cryptocurrencies for USD, EUR, and GBP without leaving the Brave Wallet. The feature is powered by crypto on-ramp startup Ramp Network and allows users to sell 38 cryptocurrencies, including Ethereum, Solana, USDC, and Brave's Basic Attention Token (BAT). Brave also recently integrated support for Solana dapps on its iOS and Android mobile browsers, allowing users to connect to platforms like the Solana-centric NFT marketplace, Magic Eden. |
South Korea launches 'Metaverse Fund' to Expedite Domestic Initiatives (2 minute read)
The South Korean government has invested $18.1 million to create a Metaverse Fund of $30.2 million to support the M&A of metaverse-related companies. They will also help local players compete with global players. While many countries and companies have been taking a step back from crypto, South Korea has been digging in deeper. In February, the country even announced its first independent sanctions against North Korean groups and individuals related to cryptocurrency thefts and cyberattacks. |
A Quick 101 on Flash Loans (3 minute read)
This thread breaks down what flash loans are and some common use cases. Flash Loans allow users to borrow assets with no collateral, but the assets must be returned in the same transaction. Smart contracts are created to initiate the flash loan, conduct trades, and pay back the loan with a small fee. Arbitrage and collateral swaps are two use cases of Flash Loans, and they can also be used in self-liquidation. Flash loans can also be exploited by hackers in Flash Loan attacks (e.g. the BeanStalk attack resulted in a $78m profit for the hacker). |
Crush the Crypto Market with These Tools (2 minute read)
This article provides an extensive list of tools and resources to help users navigate both bear and bull markets. These tools, basically the starter pack of crypto, can be used to analyze wallets, tokens, NFTs, track smart money, create dashboards, explore data and trends, discover dapps, visualize blockchain transactions, analyze on-chain data, etc. These resources provide users with data and insights that can help them gain an understanding of what's actually going on in the markets and make decisions for themselves rather than just going off what Crypto Twitter is saying. |
Sowing The Seeds of a Revolution (9 minute read)
In this article, the author discusses the disruption of SVB and the overall reaction of the markets in response to the Federal Reserve's tightening of rates. Taking a step back, the author reminds readers of a series from a year ago titled Macro Cycles, which highlighted the transition from a rising rate environment to a plateauing rate, potentially leading to a "very bullish / meltup incoming" phase. He then goes on to explain the implications of banks running low on cash, forcing them to sell time deposits at a discount. Overall, the article examines the bigger picture of the current market situation and how it may lead to further consolidation in banking and a heightened debt issue. |
In Search of DeFi Fixed Rates (12 minute read)
This article examines the various approaches taken by three protocols to create fixed lending rates, which are commonplace in CeFi but uncommon in DeFi. Notional, Element and Voltz all use different methods to generate fixed rates, with Notional using zero coupon bonds, Element using yield stripping and zero coupon bonds, and Voltz using interest rate swaps. While fixed-rate lending offers unique advantages over variable rates, these protocols have a relatively small TVL as compared to their variable rate alternatives. |
Goerli Shapella Announcement (5 minute read)
The Shapella network upgrade is scheduled to activate on the Goerli network on March 14, enabling validators to withdraw their stake from the Beacon Chain back to the execution layer. This is expected to be the last testnet upgrade before scheduling Shapella for the Ethereum mainnet. |
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