Edgen Crypto·Nov 04 2025, 13:46
[1] CME: October Crypto Contract Average Daily Trading Volume Reached 379,000 Contracts, Nominal Value of $15.3 Billion (https://www.techflowpost.com/newsletter/detai ...)[2] Dune Analytics: Bitcoin (BTC) Volume (https://dune.com/coinglass/bitcoin-btc-volume ...)[3] CME Group October Volume Hits New Record of 26.3 Million Contracts, Up 8% Year Over Year - PR Newswire (https://vertexaisearch.cloud.google.com/groun ...)
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Nov 06 2025, 04:28
Notional V3 Ceases Operations Following Balancer Vulnerability, Incurring 721.6 ETH Bad Debt
## Executive Summary Notional V3, a decentralized finance protocol, is commencing a gradual shutdown across its Ethereum mainnet and Arbitrum operations. This decision follows the incurrence of approximately 721.6 ETH in bad debt, directly attributed to a vulnerability within the Balancer protocol. The event has led to substantial financial repercussions for specific user groups, necessitating a strategic cessation of the protocol's activities to manage outstanding liabilities and mitigate further risks. ## The Event in Detail The Notional V3 protocol confirmed a bad debt total of approximately 721.6 ETH as a direct consequence of a Balancer vulnerability. This figure is segmented, with 641.4 ETH attributed to the Ethereum mainnet and an additional 80.2 ETH incurred on Arbitrum. The vulnerability in Balancer, a multi-chain automated market maker, resulted in an estimated $128 million in overall losses across various chains, impacting liquidity pools. As a direct result of Notional V3's exposure, users holding affected Balancer/Aura leveraged vaults are projected to experience a 100% loss of their assets. Furthermore, ETH lenders and liquidity providers on both Ethereum mainnet and Arbitrum will face significant reductions in their account values, including some users who utilized ETH as collateral for borrowing. To address ongoing risks and facilitate an orderly wind-down, Notional plans to release a detailed asset withdrawal strategy. For users engaged in cross-currency lending, positions will be automatically migrated to Aave, a move designed to prevent potential liquidation risks during the shutdown process. This migration leverages Aave's capabilities, allowing users to transfer loans and collateral, a mechanism previously utilized for moving positions from Aave V1 to V2. ## Market Implications The shutdown of Notional V3 due to a Balancer vulnerability carries significant implications for the broader decentralized finance (DeFi) ecosystem. The incident underscores the inherent interdependencies within DeFi, where a vulnerability in one protocol can trigger cascading financial distress across connected platforms. This event is likely to impact user confidence in the security and stability of complex DeFi instruments, prompting increased scrutiny of smart contract audits and risk management practices within the space. The total loss faced by leveraged vault users and substantial write-downs for ETH lenders highlight the acute risks associated with certain DeFi investment strategies. ## Expert Commentary The incident underscores the inherent risks within decentralized finance protocols, particularly those involving complex financial instruments and inter-protocol dependencies. Market analysts frequently highlight the potential for cascading effects when vulnerabilities in one protocol impact others within the broader Web3 ecosystem. This event serves as a significant case study regarding the due diligence required in DeFi investment and protocol integration, reinforcing calls for robust security measures and comprehensive risk assessments across the industry. ## Broader Context This event occurs within a challenging period for the crypto lending market. As of Q4 2024, the total size of the crypto lending market stood at $36.5 billion, representing a 43% decline from its all-time high of $64.4 billion in Q4 2021. This contraction has been largely driven by the bankruptcies of major lenders such as Genesis, Celsius Network, BlockFi, and Voyager, which collectively erased substantial market value. The Notional V3 shutdown, while specific to a protocol vulnerability, contributes to the ongoing narrative of volatility and risk within the DeFi lending sector, further emphasizing the need for robust infrastructure and transparent risk disclosure.
Nov 06 2025, 03:59
Monad Sets November 24, 2025 Mainnet Launch; Japan Embraces Government-Backed Bitcoin Mining; US Crypto Legislation Faces Delays
## Executive Summary Monad, a new Layer 1 blockchain, has scheduled its mainnet launch and native token distribution for November 24, 2025. Concurrently, Japan has emerged as the eleventh nation to officially support **Bitcoin** mining, marking a significant development in global digital asset adoption. In the United States, however, efforts to establish comprehensive cryptocurrency market structure legislation face potential delays due to the prospect of a government shutdown, raising concerns about regulatory certainty. ## The Event in Detail ### Monad's Mainnet Launch and Technological Advancements **Monad** is set to launch its Layer 1 blockchain and distribute its native **MON** token on November 24, 2025. The platform aims to address scalability challenges prevalent in existing **EVM**-compatible blockchains through a custom parallel execution engine and **MonadDb** system. This architecture is designed to achieve sub-second finality while maintaining full **EVM** compatibility. The testnet, launched in February 2025, has processed over 2.44 billion transactions, demonstrating a target throughput of 10,000 transactions per second (TPS). Key differentiators include a 400ms block time and 800ms finality. Over 225,000 verified crypto users and 5,500 **Monad** community members are eligible for the initial token distribution. Market interest is evident in the active speculation on the unlaunched **MON** token via the **MON-USDC** hyperp contract on **Hyperliquid**. ### Japan Embraces Government-Backed Bitcoin Mining Japan has become the eleventh country to support **Bitcoin** mining with official resources, as reported by VanEck’s Matthew Sigel. This initiative follows a strategic deal between **Canaan**, a prominent **Bitcoin** mining hardware company, and a Japanese utility provider. The partnership will utilize **Avalon** mining rigs to efficiently manage regional grid load. The utility plans to operate these rigs during periods of excess electricity generation, thereby stabilizing the grid while simultaneously mining **Bitcoin**. Following this announcement, **Canaan's** stock (**CAN**) surged by 14.5%, trading at $1.42, with daily trading volume reaching 24 million shares. ### US Regulatory Landscape and Legislative Delays The U.S. government
Nov 06 2025, 02:59
City Protocol and Mocaverse Launch $MOCASTR to Tokenize IP and Drive NFT Market Growth
## Executive Summary City Protocol and Mocaverse have officially launched **$MOCASTR**, a tokenized strategy asset, marking a significant development in the financialization of intellectual property (IP) within the Web3 ecosystem. This collaboration aims to establish a self-sustaining financial cycle for high-value IP assets. Following its launch on the **Solana** blockchain on October 29, 2025, the initiative resulted in a 15% increase in the **Mocaverse NFT** floor price within 48 hours and delivered an annualized yield of approximately 20% in its first operational cycle. ## The Event in Detail **Mocaverse**, initially an 8,888 PFP NFT collection, has evolved into a comprehensive ecosystem encompassing **Mocas NFT**, **Moca ID**, and the **Realm Network**, alongside the **Moca** token. With approximately 1.5 million minted Moca IDs, Mocaverse’s mission is to foster interoperability across the Web3 space. **City Protocol** has been at the forefront of "on-chain IP financialization," developing the Digital Asset Treasury (DAT) architecture. Backed by investments from **Jump Crypto**, **Dragonfly**, and **CMT Digital**, City Protocol aims to cultivate a $100 billion IP capital market on the blockchain. The **$MOCASTR** token operates through a strategy-driven treasury mechanism. It implements a 2.5% transaction fee, which is then utilized to fund **NFT** buybacks and resales. This model generates profits for token holders and provides direct cash flow support for the token's value. In its inaugural cycle, the treasury successfully completed the buyback of 40 **Mocaverse NFTs**, directly contributing to the notable increase in the collection's floor price. ## Market Implications This initiative introduces a structural innovation to **NFT** markets, directly addressing the prevalent liquidity challenges faced by digital assets. By enabling **IP** assets to generate continuous value through on-chain financial mechanisms, **$MOCASTR** facilitates a shift from short-term speculation to long-term value accumulation for projects like **Mocaverse**. The model presents a potential new paradigm for **Web3 IP**, moving beyond static speculative assets towards sustainable, revenue-generating economies. The success of **$MOCASTR** could pave the way for broader corporate adoption of similar tokenization strategies for intellectual property. ## Expert Commentary Tyler Durden, Head of **Mocaverse**, has emphasized the project's philosophy, stating, "We believe the project's NFT holders are also its co-founders," highlighting a community-centric approach. The collaboration between **Mocaverse** and **City Protocol** strategically positions **Mocaverse** as the cultural asset and market draw, while **City Protocol** provides the algorithmic engine and capital management infrastructure. Future directions for **City Protocol** include optimizing strategy treasury execution parameters, enhancing cross-IP collaboration capabilities, and increasing on-chain governance participation. ## Broader Context **City Protocol** envisions a comprehensive ecosystem for **IP** growth, encompassing verification, growth engines, and on-chain launchpads, with an ultimate goal of unlocking trillions in value by decentralizing **IP** management. Its AI-driven growth scaling engine, powered by tools such as **City ID**, **Viral City**, and **The Totem Toy City**, is designed to amplify **IP** impact, drive viral distribution, and extend virtual IPs into real-world brands. While the **Web3** space continues to navigate regulatory uncertainties and challenges in protecting **IP** rights on decentralized networks, City Protocol's framework aims to provide a structured and financially viable solution. This is further underscored by **Mocaverse**'s partnership with **SK Planet**, aiming to onboard 28 million KYC'd members to **Web3** by integrating **Mocaverse**'s Realm SDK into **SK Planet**'s digital ecosystem.