Hi May is finally behind us and summer is getting dangerously close. Historically, June has been the month when the crypto market picks the pace up, so let’s see if anything changes this year! For today, we prepared a couple of exciting stories for crypto fans, both newbies and veterans, so let’s get this show going.
Here are today’s stories:
Ethereum LSD Centralization Risk with Lido
The Ethereum community is voicing concerns about the risk of centralization posed by the staking protocol Lido, which currently controls a significant percentage of Ethereum's total staked value. According to one alarmed investor, Lido manages over 36% of all Ethereum staked, more than twice that of its nearest competitor. The protocol also leads the Ethereum network as the largest with a Total Value Locked (TVL) of over $13 billion, which accounts for nearly 6% of all Ether in existence.
This dominance extends to its control of validators on the Ethereum network, where Lido is used by over 32% of all validators. This exceeds Ethereum founder, Vitalik Buterin's recommended limit, which suggests no single entity should control more than 15% of all validators. Despite these figures, the investor laments the lack of community initiative to curb Lido's influence, pointing to the successful reduction of Prysm's share in the consensus client market as a model. With Lido's influence continuing to grow, Ethereum investors and stakeholders are being called to action to preserve the decentralized ethos of the platform.
Here is a tweet touching on this issue from Anthony Sassano, a prominent Ethereum educator.
Many of my fellow Ethereans are going to hate me for this tweet, but it needs to be tweeted.— sassal.eth 🦇🔊 (@sassal0x) June 1, 2023
Centralization concerns around LSD's are well-founded and I agree with a lot of them but the solutions presented often leave a lot to be desired (particularly putting too much emphasis…
Sui signs a multiyear deal with Oracle Red Bull Racing F1
Layer 1 blockchain Sui has signed a multiyear agreement to be the official blockchain partner of Formula 1’s Oracle Red Bull Racing team. In a tweet announcing the news, the team did not hide their excitement, describing the move as “huge news”.
The details are scarce, but the company did state that F1 fans will get new ways to connect with Oracle Red Bull Racing, as the team will be working on a new way to “build immersive digital experiences.”
🤩Huge news: We’re officially teaming up with @redbullracing!— Sui (@SuiNetwork) June 1, 2023
As the team’s Official Blockchain Partner, this multi-year partnership means that fans will have even more exciting ways to connect with Oracle Red Bull Racing. 🏎️ pic.twitter.com/7Gw8mbT3XH
Mercedes announces a new NFT collection
German powerhouse in the automotive industry, Mercedes, recently announced its new NFT collection on Twitter. In a series of posts, the company introduced “Maschine” - an art collection built by generative artist
Harm van den Dorpel and art collectors FingerprintsDAO. What makes this collection unique is the fact that van den Dorpel used generative AI, and created and trained a neural network to “identify and select” generated outputs. “Maschine“ will be available on Fingerprints DAO’s website, exclusively, on June 7, so if you don’t want to miss it, make sure to check the website out at 18:00 CET.
1/ We can finally announce our inaugural core collection, co-created with generative artist @harmvddorpel and art collectors @FingerprintsDAO. We’re excited to work with giants in this space and would like to share what “Maschine” is all about 🧵 pic.twitter.com/9iOFUxefpr— Mercedes-Benz NXT (@MercedesBenzNXT) May 30, 2023
Y2K Finance hits V2
Y2K finance, a structured products suite built for exotic peg derivatives, has hit V2. Announcing the news via Medium, the protocol provided its users with both a YouTube and Medium user guides, as well as a detailed explanation of how to participate.
The second version of the protocol brings “powerful upgrades”, the developers wrote in the blog post, including interacting with three initial V2 markets (MAI .9630, USDD .9700, and USDC .9970), and a linearly increasing deposit fee.
1/ Y2K is proud to announce that...— Y2K Finance (@y2kfinance) May 31, 2023
🎉🎉 V2 IS OFFICIALLY LIVE!!! 🎉🎉
💥 You can check it NOW at: https://t.co/2aAS4Ka9wg
📰 Medium user guide: https://t.co/rZh0DHnAAp
📺 Youtube user guide: https://t.co/bsO5UV8bE0
How do you participate? Check it out below 🧵👇: pic.twitter.com/MpYlgvfek3
Shanghai police detain stablecoin issuers
Shanghai law enforcement has detained the crew developing CNHC and HKDC, two stablecoins pegged to the values of the offshore yuan and the Hong Kong dollar, respectively. As reported by the local news media outlet, PANews, the Trust Reserve team was apprehended on Monday by the police, which also seized the company’s office.
At press time, we still don’t know the reasons why the team was detained. Generally speaking, China is known for its strict policies toward cryptocurrencies. The industry was “banned” multiple times, and even today, trading cryptocurrencies is forbidden in mainland China.
According to a PANEWS, the offshore CNY stablecoin CNHC and the HKD stablecoin issuer Trust Reserve team were taken away by the Chinese police for investigation. The office has been seized by the judiciary. https://t.co/zUKOnTW8c8 pic.twitter.com/GK4vLJzWb5— Wu Blockchain (@WuBlockchain) May 31, 2023
Other breaking news
- The number of divorces including digital assets on the rise
- Qredo reveals new self-custody wallet platform
- Multichain suspends multiple cross-chain services
- LayerZero rolls out zkLightClient
- Elon Musk sued for alleged Doge insider trading
June greets us with an exciting mix of developments in the crypto world. Concerns around Ethereum's centralization, Sui's collaboration with the Oracle Red Bull Racing F1, and Mercedes' AI-powered NFT collection all highlight the dynamism of this space. Regulatory actions in Georgia and China emphasize the evolving landscape, while Y2K Finance's upgrade showcases constant technological advancements.
Stay informed and engaged as we navigate this fascinating digital frontier together. See you in the next issue for more crypto updates.