Symbiotic Restaking Debuts Devnet to Rival EigenLayer

Symbiotic, a restaking protocol, has successfully launched its development network (devnet) on the Ethereum Holesky test network (testnet) in preparation for its mainnet release scheduled for later this quarter. The platform allows users to deposit assets to secure third-party protocols using a shared security model, placing itself as a competitor to EigenLayer, the first restaking protocol on Ethereum.

Unlike EigenLayer, Symbiotic supports a variety of ERC-20 tokens beyond ether and includes a unique slashing mechanism to enforce honest behavior among node operators. With over $1 billion locked in deposits and several projects already exploring the platform, Symbiotic is looking to make some noise upon its full debut, pending security audits from multiple firms.

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SEC Charges NovaTech for Alleged Pyramid Scheme

NovaTech Ltd., founded by Cynthia and Eddy Petion, is facing charges from the US Securities and Exchange Commission for allegedly operating a pyramid scheme that raised over $650 million in cryptocurrency. The SEC claims the Petions misled investors by promising returns from crypto and forex markets while using new investors' funds to pay off earlier investors and enrich themselves.

More than 200,000 investors worldwide, including many from the Haitian-American community, were affected by the scheme, which collapsed in May 2023, leaving most investors unable to withdraw their funds. The case highlights the SEC's ongoing efforts to hold both the scheme's architects and promoters accountable for defrauding thousands of victims globally.

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Optimism's Interoperability Plans for Layer 2 Chains

Optimism developers have announced plans to enhance interoperability across various Layer 2 chains in their ecosystem, including OP Mainnet, Zora, Base, and others. The initiative aims to unify these chains, known collectively as the Superchain, by implementing a message-passing protocol, a universal token standard (SuperchainERC20), and a fault-proof system for secure asset transfers.

This development seeks to create a streamlined experience for users, assets, and developers, allowing them to move freely across the Superchain as if it were a single blockchain. By standardizing cross-chain interactions, Optimism hopes to address fragmentation and improve the user experience across the Ethereum ecosystem.

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Coinbase Challenges SEC's Rule on DEXs

Coinbase's Chief Legal Officer, Paul Grewal, has called for the US SEC to withdraw a proposed rule that would require decentralized exchanges (DEXs) to register as alternative trading systems. Grewal argues that the SEC's assumptions that DEXs can comply like traditional exchanges are flawed, as DEXs operate without centralized management.

The proposed rule, initially introduced in January 2022 and reopened for comments in April, has faced criticism from various stakeholders, including lawmakers and industry leaders. Grewal's letter to the SEC highlights concerns about the rule's feasibility and potential compliance costs, urging the agency to reconsider its approach in light of recent legal precedents.

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Data of the Day

Decentralized Finance (DeFi) dominance has fallen to its lowest level since early 2021, dropping from 3.82% to 2.84% of the global crypto market capitalization last week. This decline reflects a broader trend since September 2022, as DeFi tokens have struggled to maintain investor interest amid the rise of meme coins and the introduction of Ethereum and Bitcoin ETFs.

The lack of interest in DeFi can be attributed to high fully diluted valuations, concerns about future token inflation, and the presence of private investor unlocks that may disadvantage retail investors. Despite some exceptions like Maker (MKR), which experienced temporary outperformance, most DeFi projects have underperformed against Bitcoin this year.

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More Breaking News

• Elon Musk’s interview of Donald Trump on X began 30 minutes late due technical glitches (possible DDoS attack), but crypto's volatility didn't spike.
• Polymarket experienced its largest single-day decline in open interest last week, losing $25.7 million, a 28.4% drop from $90.3 million.
• Solana's DEX trading volume decreased by over 10% last week, while Ethereum, Base, and Sui saw increases of 12%, 11%, and 77% respectively.
• An early ETH investor deposited 5,000 ether, worth $13.2 million, to OKX, following previous deposits totaling $154 million over the past month.
• Marathon Digital plans a $250 million private offering of convertible senior notes to purchase more Bitcoin and support general corporate activities.
• Thailand's SEC has launched a crypto sandbox to support innovation, allowing experiments for exchanges, brokers, custodial wallet providers.
• The daily ETH burn rate hit a yearly low with only 210 ETH burned as gas fees fell to between 1 and 2 gwei, down from 5,000 ETH in August 5.

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