Lido Introduces 1.3 ETH Solo Staking Requirement

Lido Finance introduced its Community Staking Module (CMS) on mainnet to make Ethereum solo staking more accessible, lowering entry requirements from 32 ETH to just 1.3 ETH (2.4 ETH for the first validator). Approved by Lido DAO members, the CMS first supports early adopters, including Ethereum and Gnosis solo stakers and Obol Techne credential holders.

CMS aims to address centralization concerns, with advocates like Vitalik Buterin supporting solo staking to enhance Ethereum’s security. Lido sees CMS as a move toward decentralization, with over 370 node operators joining its testnet since June. A DAO vote with 60 million LDO tokens passed the CMS launch, with only one dissenting vote cast.

As of now, Lido has $24.11 billion total value lock in it and has paid almost $1.9 billion in rewards to stakers since 2020.

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Tether CEO Defends Reserves Amid Investigation Claims

At Lugano’s PlanB event, Tether CEO Paolo Ardoino revealed the reserves backing of Tether’s USDT stablecoin. Ardoino shared that Tether holds approximately $100 billion in US treasuries, 82,000 Bitcoin valued at around $5.5 billion, and 48 tons of gold. He dismissed a Wall Street Journal article that claimed US authorities are investigating Tether for money-laundering and sanctions violations.

Calling the claims “regurgitating old noise,” Ardoino stated there’s no indication of an investigation and praised Tether’s work with law enforcement to fight fraud. Tether has reportedly helped in recovering $109 million tied to illicit activities since 2014. With USDT’s market cap at $120 billion, Ardoino is optimismtic that US regulatory attitudes toward crypto may improve after the 2024 election.

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Polymarket Trader Briefly Spikes Trump Odds to 99%

Speaking of elections, a trader on Polymarket caused Trump’s winning odds to briefly spike to 99% by buying over 4.5 million shares, leading to significant price slippage. This high-volume purchase of over $3 million led to mispricing, filling a $275,000 tranche at 99%, despite market odds being closer to 63%. The temporary odds spike highlighted how large trades can disrupt prediction markets.

Polymarket’s blockchain-based order book adjusts prices dynamically, making it vulnerable to fluctuations from major trades. The 2024 Presidential Election market, now Polymarket’s most active, has seen over $2.2 billion in trading volume. As of now, Trump leads with 63% odds, while Kamala Harris holds a 36% chance.

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FTX Estate Agrees to $228 Million Bybit Settlement

The FTX bankruptcy estate settled a $228 million lawsuit with Bybit, allowing FTX to withdraw $175 million and sell $53 million in BIT tokens. Pending court approval, this settlement is intended to recover funds for FTX creditors without lengthy litigation. FTX initially alleged that Bybit and its affiliate, Mirana Corp., exploited VIP status to withdraw $327 million ahead of FTX’s collapse.

This lawsuit is one of many efforts by the FTX estate to reclaim assets post-bankruptcy. Judge John Dorsey recently approved FTX’s reorganization plan, and FTX investors dropped a lawsuit against its former legal counsel. A court hearing to finalize the Bybit settlement is scheduled for November 20, 2024. FTX's FTT token briefly spiked amid the news before returning to $1.82.

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Data of the Day

Coinbase’s Layer 2 network Base briefly led all blockchains in stablecoin volume on October 26, accounting for 30.06% and surpassing Solana, Ethereum, and Tron. That same day, Base saw a record 5.6 million transactions, a 20% increase in network activity within 30 days. Circle CEO Jeremy Allaire suggested this trend could boost USDC's usage to a projected $6.6 trillion annual run rate.

USDC led stablecoin transactions with 62% of volume, followed by Tether at 30% and DAI at 7.4%. Although Solana previously dominated stablecoin transactions, Base has gained ground in October. As of now, Base holds a 20.8% stablecoin volume share, close to Solana’s 20.6%, while Ethereum leads the month with 25.6%.

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More Breaking News

• Retail investors account for 80% of spot Bitcoin ETF assets, shifting funds from digital wallets to ETFs for regulatory protection.
• The Netherlands launched a consultation on crypto tax reporting rules requiring providers to share user data with tax authorities to prevent evasion.
• Coinbase’s new “Based Agent” tool allows users to create AI-driven crypto agents with wallets to manage trades and staking.
• A US government wallet drained of $20 million received $19.3 million back, though some funds sent to exchanges remain missing.
• AI-run fund by ai16z briefly hit a $100 million valuation on Daos.fun after a mention by Marc Andreessen, though it’s now at $50 million.
• Jarett Dunn withdrew his guilty plea for the $2 million Pump.fun hack, with his legal team stepping down as he faces new risks.
• Farcaster’s October revenue dropped 96% from its February peak, as the decentralized social media platform faces challenges retaining engagement.

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