TLDR Index
TLDR Crypto

TLDR CRYPTO 2024-05-27

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01MARKETS & BUSINESS

THE UNINTENDED CONSEQUENCES OF FIT21'S CRYPTO MARKET STRUCTURE BILL

Though FIT21 is a momentous step forward for legitimizing the crypto industry, issues with its current form must be addressed in Senate negotiations. The bill's bifurcation of cryptocurrencies into “restricted digital assets” and “digital commodities” ignores tokens' global and fungible nature, leading to fragmentation and regulatory arbitrage. Lawmakers should refine the bill to unify spot markets for tokens that are not otherwise securities.

coindesk.com5 min read

02INNOVATION & LAUNCHES

FANTOM FOUNDATION CREATES SONIC FOUNDATION LABS

Fantom has announced it will create the Sonic Foundation and Sonic Labs to support "Sonic", a new blockchain that will connect to the Ethereum ecosystem via a layer-2 bridge. The Fantom Foundation has successfully raised $10 million to bolster Sonic's ecosystem growth. It expects Fantom users to completely migrate from the Fantom chain to the Sonic chain (due to higher security and speed).

coindesk.com2 min read

ETHERFI UNVEILS PLANS FOR CREDIT CARD TIED TO RESTAKING HOLDINGS

Leading restaking protocol EtherFi has announced EtherFi Cash, a new credit card associated with an onchain account. Users can pay using USDC holdings or borrowing USDC against their EtherFi portfolio. Any interest accrued can be paid off using eETH staking rewards. Card pre-orders will be available in July and shipped in September.

threadreaderapp.com3 min read

ETHEREUM'S NEXT UPGRADE: PECTRA

Ethereum's next hard fork, Pectra, consists of updates to the Prague execution layer and Electra consensus layer. It will be released in Q1 2025 and feature PeerDAS data availability sampling to improve rollup scaling and upgrades to the EVM Object Format (EOF) to support a better UX. It should help to alleviate pressure on the networking layer and support increased blob demand.

threadreaderapp.com1 min read

03GUIDES & TUTORIALS

USE CASES FOR ZK

Thus far, ZK is used for efficient signature verification, storage proofs, proving transactions, and bridging – all parts of the modern modular stack. Going forward, ZK could solve open problems around avoiding redundant compute and preserving privacy.

threadreaderapp.com1 min read

ARGUMENTS AGAINST FIT21

The Financial Innovation and Technology for the 21st Century Act (FIT21) fails to adequately protect DeFi developers and DAOs from the CFTC's expansive authority, despite appearing to offer exemptions for "decentralized governance systems." The act contains numerous contradictions and ambiguities, particularly around its definitions and the registration requirements for commodity pool operators and decentralized systems, leading to concerns that it will not resolve the ongoing regulatory uncertainty in the crypto sector.

threadreaderapp.com3 min read

04MISCELLANEOUS

USING TORI FOR HIGH APYS

Aave's high APY of over 17% for lending USDC is driven by strong demand to borrow USDC. Using Aave requires depositing collateral (like ETH), borrowing against it, and paying interest, which is distributed to lenders. Aave is managed by blockchain smart contracts for transparency and reduced risk.

threadreaderapp.com2 min read

DEVELOP A TOKEN WITH LONG-TERM HOLDING VALUE

Traction is crucial for startups to succeed and retain investor interest. Founders who strictly focus on initial liquidity without building longer-term value will see their token's price plummet because market dynamics will favor established leaders. Efficient markets quickly reprice assets based on real value, and crypto regulatory pressures will require exchanges to push for more rigorous metrics before listing tokens. This paradigm shift emphasizes the importance of genuine user engagement and practical utility in the crypto sector.

threadreaderapp.com3 min read