Daily Edition · Page 6

THE DAILY INDEX

Technology, AI, software, security, crypto and business

MARKETS & BUSINESS

TLDR Crypto

BANCOR SUES UNISWAP FOR PATENT INFRINGEMENT OVER DEX SMART CONTRACT TECH

Bancor's Bprotocol Foundation and LocalCoin Ltd. have filed a lawsuit against Uniswap Labs and the Uniswap Foundation, alleging unauthorized use of Bancor's patented constant product AMM (CPAMM) technology first introduced in 2016. The suit claims Uniswap's original 2018 protocol infringes on Bancor's 2017 patents covering the automated, permissionless onchain swap mechanism foundational to DEXs.

ALPENGLOW: A NEW CONSENSUS FOR SOLANA

Solana's Alpenglow consensus mechanism replaces TowerBFT and Proof-of-History with Votor for concurrent one- and two-round voting finality and Rotor for erasure-coded, single-hop data dissemination, foregoing gossip. Simulations based on current stake distribution show median finality latency of ~150 ms (as fast as 100 ms), down from ~12.8 s under the legacy protocol. Alpenglow's “20+20” resilience tolerates 20% adversarial and 20% non-responsive stake, while Rotor maximally leverages network bandwidth to minimize leader bottlenecks.

MEV EXPLAINED

Maximal Extractable Value (MEV) is the profit block producers and searchers capture by strategically ordering, including, or excluding transactions beyond standard rewards, arising from information asymmetries in public mempools. Common forms include frontrunning lottery claims, backrunning AMM arbitrage, sandwich attacks on trades, and speculative transaction retries at low fees. Unchecked MEV can drive up gas costs through spam, incentivize consensus-layer forks, and centralize power among proficient extractors. Mitigation approaches range from offchain and order-flow auctions and single-slot finality to application-specific designs, fair-ordering protocols, and encrypted mempools, helping align incentives and reduce harmful externalities.

MAKING SENSE OF STABLECOIN RATINGS

Stablecoins employ diverse collateral and algorithmic mechanisms, creating distinct risk profiles that frameworks like Bluechip's SMIDGE, which assesses stability, management, implementation, decentralization, governance, and externals, help illuminate. Traditional agencies such as S&P and Moody's are now applying securities-style analyses, reflecting growing institutional scrutiny of stablecoin infrastructure. Tether's low rating for transparency yet dominant liquidity and PYUSD's strong reserve backing offset by high centralization exemplify these trade-offs. Users must therefore align stablecoin choices and ratings with their own priorities, understanding that no single rating captures every dimension of risk.

BEST WALLET CONNECTION IS NO WALLET CONNECTION

ERC-7946 proposes a new model where dApps suggest transactions via QR code or NFC without accessing the user's wallet address, significantly improving privacy. Instead of connecting wallets directly (an increasingly risky and exclusionary practice), this standard treats dApps as composable interfaces for crafting transactions, not identity checkpoints. If adopted, it would prevent dApps from blocking users based on wallet history (e.g. Tornado Cash usage) and reduce third-party data leaks, enabling a new class of privacy-first, even offline, Ethereum applications.

COINBASE POWERING WEBULL'S CRYPTO EXPERIENCE

Coinbase's Crypto-as-a-Service will power Webull Pay's crypto services – trading, custody, staking, and USDC – starting June. This partnership ensures deep liquidity, institutional-grade security, and compliance. Webull Pay customers will access Coinbase's advanced infrastructure and income-earning crypto features, positioning the platform for scalable growth. Webull Pay is also exploring global expansion to offer branded crypto experiences across markets.

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