Market Summary

Bitcoin Price: US$ 31,125.33  (-0.79%)
Ethereum Price: US$ 1,813.33 (-2.50%) 

Oasis TVL

• TVL on Oasis Network, a privacy-enabled layer-1 blockchain built using the Cosmos SDK plunged -46% in the last 24 hours due to stablecoin depegs on the blockchain.
• According to Wu Blockchain, USDC and USDT have depegged on the Oasis Network, with USDT falling as low as $0.12.
• The depegging seems to stem from the undercollateralization of EVODefi bridge assets. A report shows that the bridge protocol has minted more USDC and USDT on the Oasis blockchain than there is backing it on the origin chain.
• EVODefi is the only bridge that users can use to bridge USDT onto the Oasis Network. At the time of writing, EVODefi has not shown proof of the funds causing the discrepancy.
• According to the EVODefi’s Twitter, the team isn’t claiming any wrongdoing, although both Oasis Foundation and BNB Chain have warned their community of the high risks involved with interacting with the bridge.

Airdrops, Auto-Compounding, Lending & Staking on Optimism

• Lens Protocol has allowed PoolyNFT holders to mint Lens profiles who may be eligible for a future airdrop.
• Astroport has released an overview of addresses qualified for the airdrop here, with ASTRO tokens and emissions now being live on Terra 2.0. You can now claim ASTRO on the app.
• Mars Protocol has completed a snapshot for a future airdrop. MARS holders on Terra Classic as of the snapshot dates will inherit governance power over Mars’ new Cosmos blockchain, Mars Hub.
• Aura Finance recipients can check allocations here. There are two choices for eligible airdrop recipients. You can lock AURA for the aforementioned exclusive governance benefits and claim in full or withdraw AURA to Ethereum and pay a no-lock penalty.
• Velodrome is an AMM designed to provide deep liquidity, low swapping fees, and low slippage. As a public good, it supports the development and growth of the Optimism ecosystem. The team behind Velodrome previously launched veDAO and has since developed expertise on both Solidly, the veNFT primitive, and the ve(3,3) mechanism.
• ZipSwap is a more gas efficient, optimistic rollup native swap. Based on a modified UniswapV2 codebase, the goal of ZipSwap is to provide users with the lowest fees possible on Optimistic Rollups. ZipSwap is available on both Optimism and Arbitrum.
• Tarot is a decentralized lending protocol on Fantom and now Optimism, where users can participate as lenders or borrowers in isolated lending pools. Lenders can supply tokens to any lending pool in the Tarot protocol to earn passive yield without impermanent loss. Borrowers can deposit LP tokens in a lending pool to borrow additional tokens in the token pair. This enables borrowers to leverage their LP tokens for even more LP tokens, allowing more leveraged yield farming and enhanced LP rewards.

Lummis-Gillibrand bill establishes SEC-CFTC balance of power over crypto markets

• The long-awaited Responsible Financial Innovation Act to create a regulatory framework for digital assets was introduced in the United States Senate on Tuesday. The official text of the 69-page document was also released. 
• The bipartisan bill, sponsored by Senators Cynthia Lummis of Wyoming and Kirsten Gillibrand of New York, “addresses CFTC and SEC jurisdiction, stablecoin regulation, banking, tax treatment of digital assets, and interagency coordination,” according to a statement. The statement continues, “Understanding that most digital assets are much more similar to commodities than securities, the bill gives the CFTC clear authority over applicable digital asset spot markets.”
• The senators appeared on CNBC Tuesday morning, and a large part of the interview revolved around splitting responsibilities between the SEC and CFTC.
• “We’re trying to just fit the digital asset world into our current regulatory framework. […] We spent a lot of time on the definition of the modern Howey test,” Lummis added. She said that she was meeting with SEC chairman Gary Gensler that day, and Gillibrand had met with him the day before. She added:
• “We’re going to continue to work with both the CFTC and the SEC to make sure that we both have found the right mix of using the Howey test to sort out which of those agencies best can regulate. We think that, because we’re using the Howey test, it’s going to come out just fine.”

PayPal enables transfer of digital currencies to external wallets

• After rolling out the ability to buy and sell crypto on its platform in October 2020, PayPal is finally allowing users the ability to natively transfer, send and receive digital assets between PayPal and other wallets and exchanges. As of Tuesday, the feature is available to select U.S. users, with the feature expanding to all eligible U.S. users in the coming weeks. The first batch of supported coins consists of Bitcoin (BTC), Ethereum (ETH), Bitcoin Cash (BCH) and Litecoin (LTC). 
• In addition, customers who transfer their crypto onto PayPal can spend it via Checkout at millions of merchant terminals. The company has been granted a full Bitlicense by the New York Department of Financial Services for the conduct.
• Users would simply need to log in to their accounts and enter the crypto section of the application to start transferring transfer coins. Users are generally required to complete a one-time ID verification before the procedure.
• Crypto transfers to recipients outside of PayPal would incur a network fee based on their respective blockchains, but transfers between PayPal users will not incur such fees. To protect users’ privacy, the firm generates a new recipient address for each transaction into one’s PayPal account. PayPal will also not charge fees for incoming transfers,

Aurora pays $6M bug bounty to ethical security hacker through Immunefi

• On Tuesday, Ethereum (ETH) bridging and scaling solution Aurora announced it had paid out a $6 million bounty to ethical security hacker pwning.eth, who discovered a critical vulnerability in the Aurora Engine. The exploit allegedly placed over $200 million worth of capital at risk. The sum was paid in collaboration with Immunefi, a leading platform for Web 3.0 bug bounties, with more than $145 million bounties available and over $45 million bounties paid out.
• On April 26, Immunefi received a report from pwning.eth about a critical flaw in the Aurora Engine that would have enabled the infinite minting of ETH in the Aurora Ethereum Virtual Machine to drain and siphon the corresponding nested ETH (nETH) pool on NEAR. At the time of discovery, the pool contained more than 70,000 ETH, worth at least $200 million.
• Mitchell Amador, founder and CEO at Immunefi, said: “Hats off to Aurora and pwning.eth for the flawless overall processing of the report. The bug was quickly patched, with no user funds lost.” Aurora had launched a bug bounty program with Immunefi just one week before discovering the security vulnerability. Meanwhile, Frank Braun, head of security at Aurora Labs, commented: “We look at the bug bounty program as the last step in a layered defense approach and will use this bug as a learning opportunity to improve earlier steps, like internal reviews and external audits.

Binance fires back at Reuters’ money laundering allegations

• Crypto exchange Binance published a lengthy response to an article published by Reuters that claims that the exchange has been a “hub for hackers, fraudsters and drug traffickers,” saying that there’s at least “$2.35 billion in illicit funds” laundered within the exchange. 
• In a blog post, Binance addressed the issue and noted that the article’s allegations are not only untrue but are also attempts by certain interested parties to “mislead the general public” by spreading disinformation. Binance wrote:
• “We highly suggest you ignore those authors and pundits who cherry-pick data, rely on conveniently unverifiable “leaks” from regulators, and feed into the cult of crypto paranoia for fame or financial gain. Instead, just look at the facts.”
• The exchange also pointed out that traditional finance platforms are more tainted with illicit funds than crypto, which is transparent in nature. Moreover, the exchange cited statistics from the United Nations that 2%–5% of fiat money is associated with illicit activities.
• Lastly, within the blog post, Binance published its email correspondence with Reuters. This includes Binance’s complete responses to Reuter’s inquiries before it published the article that criticized Binance.

FTX will not freeze hiring amid layoffs at other crypto firms, CEO states

• Amid unfavorable market conditions, some cryptocurrency-related firms decided to cut their workforce or freeze hiring. However, crypto exchange platform FTX will continue hiring new personnel as the crypto winter continues. 
• In a Twitter thread, FTX CEO Sam Bankman-Fried explained that the exchange will continue to “keep growing,” explaining that they will onboard new staff just as they have done on the market’s better days.
• Bankman-Fried noted that in February the company slowed down hiring. However, he said that this is not due to a lack of funds. The move was done to make sure that team members can have enough time to properly mentor new employees before adding more.

Crypto.com’s Cronos launches $100M accelerator for DeFi and Web3

• Cronos, a blockchain ecosystem built by major crypto exchange Crypto.com, announced the launch of an accelerator program to fast-track advancements across the decentralized finance (DeFi), Web3 and Metaverse space, among others. 
• Driving the initiative, the Cronos Accelerator Program is backed by $100 million to help crypto projects in the seed and pre-seed stages seeking mentorship, funding and growth. According to the announcement, projects shortlisted for the accelerator program will be matched with compatible mentors.
• Some of the prominent investment partners backing the Cronos Accelerator Program include Mechanism Capital, Spartan Labs, IOSG Ventures, OK Blockchain Capital, AP Capital, Altcoin Buzz and Dorahacks. Cronos plans to onboard other partners in the future. Providing further clarity into the program, Cronos managing director Ken Timsit added:
• “In the current climate, it is more important than ever to put our heads down and start building aggressively.”
• Timsit aims to enhance the potential of projects by providing end-to-end support across the project’s operations. As part of this initiative, Cronos’ Web3 startup accelerator arm Cronos Labs conducts weekly workshops that cover various aspects of building crypto projects.

Cybersecurity firm supports Bitcoin ‘mission,’ converts balance sheet to BTC

• Another business jumps aboard the Bitcoin bandwagon. Octagon Networks, a global cybersecurity network company with over 20 employees announced on Monday that it had “finished the process of converting its liquid assets and entire balance sheet into Bitcoin (BTC).” 
• The group will also “start accepting Bitcoin payments for all of our services, with a 50% discount when paid in Bitcoin.”
• Cointelegraph spoke to the Ethiopian cofounders of Octagon Networks, who preferred to remain anonymous. They explained that adopting Bitcoin was driven by a belief in Bitcoin and volition to support the network:
• “We are large proponents and believers in Bitcoin. We believe in a truly decentralized form of money that can be transferred at the speed of light.”
• They added that the “$25,000 area” could be the bottom of the bear market, while qualifying that the Bitcoin they have accumulated “doesn’t affect our operating costs as everyone who works here is a sole believer in the mission of Bitcoin.”

Kazakhstan’s central bank ‘isn’t going to ignore’ the crypto market

• While Kazakhstan’s government is catching up with the tremendous volume of crypto mining in the country by introducing new taxes and regulations, the local central bank intends to explore the possibilities that crypto offers. 
• During the press conference held on Tuesday, June 7, the chairman of the Kazakhstan National Bank Galymzhan, Pirmatov, stated that the nation aims to extract the profit from technologies the cryptocurrency market could provide. He emphasized the attractiveness of innovations and made reservations about the risks to macroeconomic stability. The official doesn’t think that the bank is late to the game:
• “I don’t think that the National Bank is a latecomer. Like many other banks and financial regulators across the globe, we’re watching closely and researching the question.”
• Pirmatov didn’t give away any details on the bank’s possible stance on crypto and warned that it is too early to speak about legalization, although consultations with market participants are planned:
• “The approach is very simple: We aren’t going to ignore this market. We want to extract the maximum profit from the innovative potential these technologies give us.”

Iota Foundation joins Dell to develop real-time carbon footprint tracking

• Iota Foundation, a nonprofit distributed ledger technology ecosystem provider, has partnered with tech giant Dell Technologies to develop a data-driven solution for the real-time tracking of carbon footprints. 
• Dell’s edge solutions team announced the onboarding of Iota, climate change-focused technology company ClimateCHECK and BioE to develop a solution on top of Dell’s in-house Data Confidence Fabric (DCF) and Project Alvarium initiatives.
• Iota has been an active participant in Project Alvarium, which Dell first conceptualized in 2019 to utilize vetted data from the DCF, or “trust fabric,” across heterogeneous systems. Mathew Yarger, head of sustainability at the Iota Foundation, stated:
• “Transparency and trust in data is paramount for addressing the global issues of climate change and transitioning to climate action.”

Leaked copy of US draft bill shows DeFi and DAOs under regulatory lens

• A leaked copy of a United States draft bill concerning cryptocurrency started doing the rounds on Twitter earlier on Tuesday. The 600-page copy of the leaked bill highlights some of the key areas of concern for regulators including decentralized finance (DeFi), stablecoins, decentralized autonomous organizations (DAOs) and crypto exchanges.
• User protection seems to be the primary focus of regulators, with policies intended to require any crypto platform or service provider to legally register in the U.S, be it a DAO or DeFi protocol.
• This could highly curtail chances for anonymous crypto projects to progress in the United States. Any crypto platform not registered in the country would be liable for taxes, and the definition of DeFi still seems vague.
• The leaked draft bill also tries to offer more clarity on securities laws as they relate to digital assets, a demand that has been persistent from the crypto community and lawmakers alike. According to the Commodity and Futures Trading Commission’s definition of a commodity, if there is any debt, equity, profit revenue or dividend of any variety, then it is expressly not a digital asset commodity.

New Japanese law may allow seizure of stolen crypto

• Japan’s Justice Ministry is reportedly considering a revision of an asset seizure law relating to organized crime to include a stipulation that crypto can be commandeered in such instances.
• If the reports are found to be true, a potential revision of the Act on Punishment of Organized Crimes and Control of Proceeds of Crime (1999) would enable law enforcement officers and courts to take control of crypto assets used in criminal activity such as money laundering.
• According to reports from local media outlets such as the Yomiuri Shimbun on Saturday, the Justice Ministry will first need to engage in talks with the Legislative Council on the issue before proceeding forward. While it will also need to iron out important details such as how officers can go about obtaining a criminal’s private keys.

Fed forgets long-term dollar devaluation when pricing eggs in BTC

• The St. Louis Federal Reserve stirred up a mix of amusement and curiosity from the crypto community on Tuesday, May 7, after publishing a post showing how the cost of eggs in Bitcoin (BTC) has fluctuated over the last 14-months compared to the U.S. dollar. 
• On Monday, the Fed research arm posted a blog post titled “Buying eggs with bitcoins — A look at currency-related price volatility.”
• The post initially features a graph showing the historical price of eggs in U.S. dollars for every month since January 2021, noting that the prices fluctuated between $1.47 and $2.52 over the 14-month period.
• It then follows this up with a graph showing how Bitcoin has behaved in the same time period, noting that the price fluctuated “much more than it did for the U.S. dollar price.” 
• The report did not stipulate whether the price of eggs had increased or the dollar had devalued, or both, as causes for the trend.