Get the latest crypto updates in Datawallet's Daily Dose: Polygon aids UK regulators, Level Finance hack, Sotheby's NFT expansion, and ByBit's lending services.
Polygon Helps UK Regulators, Level Finance Exploited 💥

Polygon Helps UK Regulators, Level Finance Exploited 💥

May 3, 2023
| Issue

Hello hello, crypto fans and DeFi aficionados! Welcome to another issue of Datawallet’s Daily Dose, the only place for crypto-related news you’ll ever need. Regardless if you’ve already spent someone’s yearly salary on a rock NFT or are just beginning to venture into the uncharted waters that crypto is - we have something for you.

Our mission is to keep you informed and on your toes on all things crypto, so without further ado, let’s get this show on the road. Here’s what we lined up for you today:

Polygon Labs lends a helping hand to UK’s regulators

Polygon Labs has heeded the UK government’s call to assist in building out a legal framework for crypto-oriented companies. In February this year, His Majesty’s Treasury (HM Treasury) asked blockchain- and crypto-related businesses to respond to its Consultation & Call for Evidence as it sought to establish a solid regulatory regime for the industry. 

Late last night, Polygon Labs submitted its response. You can find the document (PDF) on this link.

As per a blog post published on the Polygon website, HM Treasury’s Consultation is a “comprehensive, thoughtful proposal” that is based on a thorough analysis and good understanding of the crypto industry. The Consultation aims to first focus on centralized and custodial intermediaries in crypto-assets (CeFi), as well as companies issuing their own tokens. Apparently, the framework shouldn’t be too dissimilar to what the European Union is working on. 

“The Call for Evidence asks for input regarding novel applications of blockchain technology such as decentralized finance, mining & validation and sustainability,” Polygon Labs concluded in its writeup.

Level Finance hacked, close to $2 million taken

Level Finance, a crypto-company describing itself as a decentralized perpetual exchange with functional risk management and innovative liquidity solutions has been breached and its funds siphoned. 

As per the company’s announcement late Monday night on Twitter, the attackers targeted its smart contracts and managed to get away with 214,000 LVL tokens. Just before news of the breach broke, the price of one LVL was $8.4, meaning the crooks got away with $1.8 million.

However, in the hours following the news, the price plummeted by 50%, reaching a price of $4.2 before rebounding. At press time, LVL costs $7.7.

The team also explained that the threat actors swapped the token for BNB tokens, and that other smart contracts were unaffected by the exploit. Liquidity pools, as well as the DAO treasury, are also unaffected by the event, the team further stated. A fix to the flaw was issued some 12 hours following the breach.

Sotheby’s expands its NFT sales

You can now explore Sotheby’s NFT collection in the most futuristic way possible - via the metaverse. One of the world’s most popular (and biggest!) brokers of art, jewelry, and collectibles published a Twitter thread in which it announced the “next evolution of #SothebysMetaverse”, and described it as “the most trusted and dynamic destination to collect, buy and sell remarkable digital works.”

The offering will feature a rotating, curated selection of art, picked by Sotheby’s specialists. For each piece of art, there will be unique guidance and context, which includes thematic presentations, artist spotlights, and more.

For starters, Sotheby’s picked a number of popular NFT artists, including Xcopy, Tyler Hobbs, and Claire Silver. 

Ethereum and Polygon chains will be executing the sales, it was said. Artist resale royalties will be honored directly on-chain through marketplace smart contracts, with a seller fee of 2.5%. 

The responses on the thread have been overwhelmingly positive, with some people calling it an “amazing step for artists and collectors”. 

Sotheby’s is located in 40 countries around the world, in which it maintains 80 locations. Among the younger generations, Sotheby’s is known for hosting the shredded Banksy’s art auction. 

ByBit starts offering lending services

At a time of a complete and utter meltdown of crypto lending businesses, one company is headed in the opposite direction - ByBit. This Dubai-based exchange platform announced it will start rolling out an in-house crypto lending service to its users on May 2. 

Users that decide to deposit their crypto funds on the platform can expect to earn yield, including hourly interest payments in various lending pools. On the other end, the borrowers can take out a loan on the platform, by placing an equal, or larger amount, of crypto, as collateral. 

In a press release published by the company, its CEO and co-founder Ben Zhou said users can expect “attractive returns on idle cryptocurrencies” 

"This is another step on our mission to making the world of Web3 more accessible and uncomplicated."

Last year, some of the biggest crypto lenders, including Genesis, and Celsius, filed for bankruptcy, following the demise of the TERRA/Luna protocol. Other platforms, such as Binance and Nexo, still offer similar services.

Other breaking news

Wrapping Up

Today’s issue of the Datawallet Daily Dose covered all the biggest news to hit the crypto market today. From Polygon’s filing to Sotheby’s Metaverse, to ByBit joining the lending industry, we continue to feel the pulse in one of the world’s most active industries. 

Stay tuned for more, as tomorrow we’ll bring more of the same!