Hello, crypto faithfuls. We’ve managed to arrive at the midpoint of the week, and we here at Datawallet are once again bringing you the latest news from the world of crypto. Regardless of your expertise level, we’re sure that you will find something interesting among the topics below.
Today’s drop will cover these key daily news items:
Prime Protocol live, set to change DeFi forever
Unlocking the power of cross-chain communication, Prime has harnessed Axelar's Generic Message Passing to provide users with the ultimate borrowing experience. By harnessing this innovative protocol, users can now seamlessly cross-margin their entire asset portfolio and borrow against their on-chain assets across multiple platforms, including Ethereum, Moonbeam, Arbitrum, and Avalanche - without the need for any pesky token bridges.
To ensure a smooth and efficient experience for users, Prime resolves all infrastructure issues, enabling quick and easy access to liquidity, regardless of where collateral is locked up. Once a deposit is made, Axelar swings into action, sending a message and recording the transaction on Moonbeam. And when users wish to withdraw or borrow funds, they can do so using any chain available through the Prime protocol. Once again, Axelar works its magic, facilitating messages and distributing tokens to the user's preferred network.
In contrast to token bridges, which are susceptible to security breaches and hacker attacks, Prime offers a safe and secure platform that users can trust. With Prime and Axelar, users can finally unlock the full potential of their assets and experience the true power of cross-chain communication.
German Unstoppable Finance to launch EUs first “DeFi-native bank”
As the EU's new Markets in Crypto Assets (MiCA) bill is barely dry, one European crypto company is already stoking the fires of innovation. Berlin-based fintech startup Unstoppable Finance, famous for its self-custodial crypto wallet called Ultimate, is set to unveil Europe's first DeFi-native bank, along with a fiat-backed Euro-pegged stablecoin in compliance with MiCA's guidelines.
Unstoppable Finance's founder, Timo Grosskopf, previously launched Germany's first regulated crypto exchange, and his team's Ultimate DeFi wallet empowers users to interact with Ethereum and Solana protocols, self-custody assets, and trade crypto from their smartphones. Grosskopf also warned of the recent liquidity crises that plagued several banks, which briefly depegged Circle's native stablecoin USDC, further emphasizing the need for innovative solutions that protect user assets.
Maker launches Spark Lend
MakerDAO, the mastermind behind the top-notch decentralized stablecoin DAI, has set forth Spark Protocol, an innovative lending platform that intends to invigorate DAI's prowess.
With Spark Lend as its debut offering, on-chain users can lend or borrow ETH, stETH, DAI, and savings DAI at competitive interest rates. Savings DAI (sDAI), a spanking new yield-generating token, denotes DAI deposited in Maker's DAI Saving Rate (DSR) module, similar to staked ETH with Lido.
Spark Protocol signifies the first stage of Maker's Endgame initiative, a scheme that envisions multiple subDAOs with their unique governance tokens. To supplement the launch of Spark, savings DAI (sDAI) has been introduced, an interest-bearing DAI token that embodies DAI deposited in Maker's DSR.
Crafted as a soft fork of Aave V3 by the wizards at Phoenix Labs, Spark Protocol plans to distribute 10% of its profit to AaveDAO for the initial two years.
“Sandwich Attack” drained $40 million from over 100,000 victims
In the year 2023, on the auspicious day of February 27th, the sandwich bot was brought to life by its ingenious creators. But it wasn't until the 17th of April that the bot truly emerged from its technological cocoon, captivating the public's attention and igniting intense debates.
During this epoch of enlightenment, the sandwich bot's transactions accounted for a whopping 60% of all blocks, resulting in a surge in Ethereum's gas fees.
It wasn't until the 17th of April that the bot's profit margins began to resemble the staggering heights of the Burj Khalifa. A popular trend of trading altcoin tokens had emerged, and the sandwich bot was quick to capitalize, amassing a colossal $2.7 million in just one week. And the rest, as they say, is history.
Fast forward to May 8th, and the sandwich bot's profits have eclipsed the $35 million mark, leaving its competitors in the dust. The bot's uncanny ability to hold a massive number of tokens in its account has propelled it to the forefront of sandwich attacks, with over 7,000 tokens in its arsenal.
But the sandwich bot isn't content with just being a one-trick pony. It's also adept at holding onto altcoins during back-run transactions, generating even more profits. And to ensure that its transactions are always included in the block, the bot isn't shy about paying premium gas fees.
But don't think for a moment that the sandwich bot is a pushover. It doesn't dish out extra tips to the builders and is unbiased when it comes to selecting its builders. The bot is laser-focused on the MEV searcher side, always on the prowl for the next big opportunity to strike.
Other breaking news
- Blockworks raises $12 million
- US inflation rate drops, BTC continues to chop
- Chronos DEX attracts $230 million
- CFTC Chair says Tether is a commodity
- UK police confiscate $6 million in crypto from drug dealer
Wrapping up
And with that we end another Datawallet newsletter. Wednesday was no slouch, with CPI data in the US finally showing signs of slowing down, which propelled BTC, while a new development in DeFi space aims to change it forever. If you’re a fan of sandwiches, the sandwich bot might give you a reason to dislike them, as the bot managed to drain over $40 million from users in an attack/hack that took place over a few months. Stay informed and ahead of the game with our daily crypto scoop. See you tomorrow!
