Explore Circle's new USDC trading option for BlackRock funds, Pac Finance's $26M liquidation, and Ether.Fi's $500M Oracle deal.
Circle Enables Trading of BlackRock Tokenized Funds for USDC

Circle Enables Trading of BlackRock Tokenized Funds for USDC

Explore Circle's new USDC trading option for BlackRock funds, Pac Finance's $26M liquidation, and Ether.Fi's $500M Oracle deal.

Apr 13, 2024
| Issue

Welcome to the final edition of Datawallet Daily for the week. As always, we’ve curated the must-know crypto stories from the last 24 hours just for you:

Circle Enables Trading of BlackRock Tokenized Funds for USDC

Circle has introduced a smart contract that facilitates the trading of BlackRock's tokenized BUIDL fund for USDC stablecoins, enhancing liquidity and simplifying transactions on secondary markets. This feature enables holders to convert fund shares directly into digital dollars, streamlining transactions and reducing barriers within traditional finance frameworks.

This initiative extends the partnership between Circle and BlackRock, bolstered by BlackRock's strategic investment in Circle’s 2022 funding round. The BUIDL fund, primarily investing in U.S. Treasury bills, has already amassed over $150 million in assets, demonstrating robust investor interest. Jeremy Allaire, CEO of Circle, emphasized the transactional speed and cost efficiency of this onchain solution, offering instant USDC access to investors and highlighting the benefits of blockchain in minimizing transactional costs.

As BlackRock expands its blockchain efforts with offerings like the BUIDL fund and the IBIT bitcoin ETF, Circle’s integration of USDC support is a critical infrastructure enhancement in the cryptocurrency landscape, aligning with both companies' goals to innovate within the financial sector.

Blast Lender Pac Finance Faces $26M in Liquidations

Pac Finance, an Aave fork operating on the Blast network, unexpectedly lowered the liquidation threshold for ezETH loans on April 11, resulting in $26 million in liquidations. This sudden adjustment was made without prior notification or a timelock, leading to significant financial losses among users. 

Stani Kulechov, the founder of Aave, publicly criticized the move, highlighting the risks associated with modifying crucial protocol parameters without a comprehensive understanding of the software’s intricacies. Further analysis revealed that 93% of these liquidations were executed by a single address, which profited by 244 ETH.

Pac Finance acknowledged that an unexpected change to the liquidation threshold led to recent user liquidations. The platform stated that this occurred without the knowledge of their team and that they are now in contact with affected users to develop a mitigation plan.

Ether.Fi Signs $500M Deal with RedStone Oracles

Ether.Fi has committed $500 million under a deal with RedStone Oracles to secure their data oracles, which relay information between blockchains and external sources. This partnership leverages EigenLayer’s restaking protocol that allows to “borrow” Ethereum’s security.

Over 20,000 Ether.Fi node operators will manage RedStone’s Actively Validated Service using eETH tokens, ensuring protection against network disruptions and economic attacks. Ether.Fi, a significant player in liquid restaking, currently controls $3.8 billion in EigenLayer, providing users with derivative tokens, Ether.Fi ETH (eETH), which earns interest and can be traded.

Sam Bankman-Fried Appeals Conviction and Sentence

Sam Bankman-Fried, the former CEO of FTX, has filed an appeal against his conviction and 25-year sentence, confirmed by his attorney on April 11. Bankman-Fried was found guilty on seven felony charges related to the collapse of the cryptocurrency exchange FTX. His legal team announced plans to appeal during his sentencing on March 28, where Judge Lewis Kaplan also ordered the forfeiture of $11 billion. 

The appeal was filed in the United States District Court for the Southern District of New York, with the case likely advancing to the Second Circuit Court of Appeals for further proceedings.

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