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THE DAILY INDEX

Technology, AI, software, security, crypto and business

MARKETS & BUSINESS

TLDR Crypto

ETHENA PARTNERS WITH SECURITIZE TO LAUNCH CONVERGE

Ethena and Securitize have joined forces to launch Converge, a new blockchain ecosystem where Ethena's USDe stablecoin and Securitize's tokenized RWAs (including BlackRock's BUIDL) can coexist, enabling both permissionless DeFi and compliant onchain finance. The goal is to bring institutional capital and real-world assets onchain using Ethena's existing integrations and Securitize's relationships with major asset managers.

FIRST PRINCIPLES - COMPOUNDERS, L1S, IR, BUYBACKS

Crypto has a chronic issue with short-termism, and builders should instead focus on “compounders”—long-term, revenue-generating assets like Jito ($900M annualized) and Uniswap ($700M)—by fostering high-integrity leadership and products with clear profitability paths to counter memecoin fatigue. Similarly, generalized layer 1s are failing, while those in specific verticals (e.g., Hyperliquid's perp trading) drive ecosystem demand. Liquid token projects should adopt investment relations (IR) roles and quarterly reports to build investor trust while dismissing buybacks in favor of reinvestment in growth.

THE L2 VS L1 BATTLE THAT NOBODY IS TALKING ABOUT

L2s hold a structural advantage over L1s in supporting decentralized applications by using centralized block producers to quickly implement fee-sharing and MEV taxes, augmenting app revenue while minimizing costs. L1s are constrained by validator profitability whereas L2s only carry the sequencer's expense with no capital requirements. This competition drives a shift toward profit-driven, long-term crypto apps, aligning with positive regulatory clarity for DeFi and increasing institutional interest.

BURNING QUANTUM-VULNERABLE BTC IS THE BEST OPTION

Instead of allowing quantum computers to recover lost Bitcoin and undermine the network's core principles, vulnerable BTC should be burned to protect its integrity. Quantum recovery would redistribute wealth to those with advanced quantum technology, posing a significant threat to the network's integrity and fairness. Debates are ongoing about how legitimate the threat of quantum computing is to Bitcoin and when the network will need to take a hard stance.

US COURT ALLOWS 3AC TO EXPAND FTX CLAIM TO $1.5 BILLION; FTX ARGUES REORGANIZATION PLAN AT RISK

The U.S. Bankruptcy Court for the District of Delaware ruled in favor of Three Arrows Capital (3AC), allowing it to increase its claim against FTX from $120 million to $1.53 billion, despite FTX's objection that the motion was untimely and would disrupt its reorganization plan. The court found that FTX's delays in sharing records, not 3AC's diligence, caused the delay. 3AC's claim stems from its 2022 collapse amid liquidity issues following the Terra-Luna ecosystem's implosion.

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