Ethena $USDe Hits $3 Billion in Supply

Biden Vetoes | UNI Postpones Vote

Marco Manoppo & Karon Pangestu
June 03, 2024

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Good Morning.

The market is flip-flopping as usual, which is perhaps an appropriate reaction to the Biden administration's move in recent weeks. While the future of crypto in the US will be in constant limbo at least until November, ETH ETF trading will start in a few weeks.

Time to lock it in.

In Today's Email:

What Matters: Biden reactivates SAB 121 👴
Product: USDe $3B supply 🚀
Charts: DMM $305M hack, UNI down 13.6% 📉

Narratives: ETH beta still.

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WHAT MATTERS

Biden Vetoes House Resolution to Repeal SEC Accounting Bulletin 121

Bloomberg

State of play: Joe Biden vetoed a House resolution to repeal the SEC's Staff Accounting Bulletin 121, stating he would not support “measures that jeopardize consumers and investors”.

SAB 121 is a controversial SEC guideline requiring financial institutions to list crypto assets held for customers on their balance sheets.
Critics argue the requirement complicates working with crypto companies.
Biden stated that the resolution would constrain the SEC’s ability to set appropriate guardrails and address future issues, potentially undercutting the SEC’s broader authority on accounting practices.
The veto followed letters from banking groups and Congress urging Biden to overturn SAB 121.
The banking groups argued the guidance blocks regulated banks from offering custody services.

What’s next: In his statement, Biden reiterated his desire to work with Congress on digital asset market legislation. Lawmakers asked Biden to work with the SEC to rescind the guidance if he intended to veto the resolution.

Our take: The flip flop is a clear sign that crypto will become a partisan issue in the US, at least for the foreseeable future until the election in November.

For builders and investors: This is an important macro news to be aware of, but there’s no immediate impact unless you’re building something in the RWA/TradFi-crypto hybrid space.

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PRODUCT OF THE WEEK

USDe Surpasses $3B Supply in Four Months

The Block

The USDe stablecoin by Ethena Labs reached a $3B supply in just four months, making it the fastest USD asset to hit this milestone, according to Ethena founder Guy Young.

Since April 5, the USDe stablecoin's supply has grown by $1B, reaching $3B.
USDe is now on track to challenge DAI as the largest algorithmic stablecoin, needing another $2B to do so.
USDe holds the fourth-largest share of the stablecoin market at 3.3%.

Other cool products:

Totemancer, a P2E game on TON.
Cryppe.io, a crypto chart and volume screener.
SafeTrending, an Ethereum trends explorer platform.
TokenIgnite, a multi-chain simple token creation platform.
upcomingmeme, a directory for upcoming meme coins on Solana, Ethereum, and Base.

CHARTS OF THE WEEK

DMM Bitcoin Hit by $305M Hack

Blocksec - MetaSleuth

State of play: DMM Bitcoin, a Japanese exchange, reported a loss of 4,502.9 BTC (~$305M / ¥48B) due to a hack on 31st May. DMM has restricted all spot buys and noted that Japanese yen withdrawals may experience delays.

DMM claimed that it has implemented measures to prevent further unauthorized outflows.
Security firm Blocksec's data reveals that the hacker split the stolen bitcoin into 10 wallets in 500 BTC batches.
DMM guarantees the full amount and plans to procure the equivalent amount of BTC to cover the outflow.

Our take: The DMM incident has pushed the total crypto losses from hacks and rug pulls in 2024 YTD ($773M) past the amount lost during the same period in 2023 ($595M).

UNI Falls as Foundation Delays Vote

UNI/USD - CoinGecko

State of play: UNI dropped 13.6% in the last 7 days to ~$9.6 as of the time of writing as the Uniswap Foundation postponed the vote for staking and delegation rewards planned for Friday.

The postponement was prompted by a stakeholder raising concerns with the Foundation, leading to further review.
The proposal was introduced in February. It aims to reward committed Uniswap stakers and delegates for their high-quality participation.
The Uniswap Foundation said they “will keep the community apprised of any material changes and will update you all once we feel more certain about future timeframes.”

Our take: The market rightfully criticized this move from the Foundation as it’s clear that there are offchain conversations between stakeholders and tokenholders that aren’t communicated in the public forum.

QUICK BITES

Tether buys $100M worth of Bitdeer.
DMM Exchange suffers a $305M hack.
CZ begins the 4-month prison sentence.
FTX offloads remaining Anthropic shares.
Uniswap postpones protocol upgrade vote.
\Velocore addresses $7M hack in postmortem.
Biden vetoes resolution overturning SEC guidance.
Binance CZ begins his four-month prison sentence.
Franklin Templeton discloses the fee of its spot Ethereum ETF.
$100M token unlocks from Arbitrum, Aptos, APE, OP, and more.
Bybit confirms executive shake-up after Notcoin deposit delays.
Ark Invest stops partnering with 21Shares for the spot ETH fund.

NOTEWORTHY READS & MEME

0xKyle’s read on playing the long game in crypto.
Knower’s read on what he has been seeing in crypto lately.
Joel John’s read on using tokens as a retention/governance tool.

At least these celebrities didn’t do points systems
— Gwart (@GwartyGwart)
5:53 PM • Jun 2, 2024

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Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.