Trump Family Crypto Project Based on a $2M Hacked Protocol

Donald Trump's upcoming crypto project, World Liberty Financial, has raised concerns due to its ties to Dough Finance, a DeFi platform hacked for $2 million in July. Four team members involved in both projects have fueled speculation that the new initiative may reuse or repurpose code from Dough Finance, though it is unclear if vulnerabilities persist.

Adding intrigue, the project plans to launch WLFI, a governance token that users cannot trade freely, a move that may discourage speculation. The Trump family has been promoting this crypto venture, although details remain sparse. Complicating matters further, the X accounts of Trump’s daughter-in-law Lara and daughter Tiffany were hacked to promote a fake token associated with the project.

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Polygon Begins Token Swap from MATIC to POL

Polygon is set to replace its long-standing MATIC token with the new POL token as part of a broader upgrade aimed at improving its blockchain network. The transition is a key step in the Polygon 2.0 roadmap, which also introduces new tokenomics, including a 2% annual emission rate to support validators and community growth.

The changeover is particularly noteworthy because MATIC holders will automatically swap their tokens for POL, potentially impacting a large portion of crypto portfolios given its position as the 13th largest token by market cap. POL will not only serve as a gas and staking token but will also play a critical role in broader ecosystem activities, such as zero-knowledge proof generation and decentralization.

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Ripple to Bring Smart Contracts to the XRP Ledger

Ripple is planning to enhance the XRP Ledger (XRPL) by introducing smart contract capabilities, aiming to attract developers and broaden its blockchain's use cases. The new feature, expected to go live on an Ethereum Virtual Machine (EVM) sidechain, will allow developers familiar with Ethereum-based tools to build decentralized applications (DApps) on XRPL.

Ripple’s move signals a strategic push to compete with other major blockchain platforms like Ethereum, Solana, and Avalanche, which already support smart contracts. While the smart contracts will initially be tested on a sidechain, Ripple plans to eventually implement them on the XRPL mainnet. The company has also invited developers to collaborate and provide feedback.

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Ethereum's Lending Markets Hit by Massive Liquidations

Ethereum’s onchain lending markets saw their second-largest liquidation month in history during August, with over $436 million liquidated, largely driven by a 22% drop in ETH prices. The majority of these liquidations occurred on Aave, which accounted for 66% of the total, as the falling ETH value forced collateralized loans to fall below the required thresholds.

This liquidation event follows the steep decline in the value of ETH, which dropped by as much as 35% at its lowest point during the month. The cascading effect from liquidations created a feedback loop, amplifying the volume of liquidations and further straining the market. Overall, August marked a brutal month for many in the Ethereum ecosystem as activity, gas fees, and other sectors faced downturns.

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Data of the Day

Solana network transactions dropped sharply in August, with non-vote transactions falling by 63% from July's high of 1.31 billion to just 485 million, marking a multi-month low. The downturn in transaction volume brought activity to levels not seen since September 2023, raising concerns about declining interest in the network.

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More Breaking News

• Binance will launch a new Solana staking product, BNSOL, allowing users to earn rewards while keeping their collateral liquid and usable across DeFi platforms.
• Ethena’s USDe will be available for deposit on Ether.fi in exchange for eUSDe, a dollar-pegged liquid restaking token used within EigenLayer.
• The FBI warns that North Korean hackers are increasingly using sophisticated social engineering tactics to target Web 3 employees and steal crypto.
• Oregon man Sam Ikkurty is accused of running a Ponzi-like crypto hedge fund, leading the CFTC to recover $18 million in defrauded assets.
• Galois Capital, a hedge fund hit by the FTX collapse, will pay the SEC $225,000 for misleading investors and mishandling customer assets.
• Crypto lender Nexo resumed onboarding UK clients after upgrading its platform to meet Financial Conduct Authority compliance standards.

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