Daily News 19

Category: Coins

Digital assets, cryptocurrencies, blockchain, and currency news.

  • Ledger CTO Warns Bitcoin Quantum Migration Could Take Years as SHRINCS Emerges

    Ledger CTO Warns Bitcoin Quantum Migration Could Take Years as SHRINCS Emerges

    Ledger CTO Analyzes SHRINCS Post-Quantum Signature Proposal for Bitcoin

    Ledger Chief Technology Officer Charles Guillemet published a technical analysis on September 16, 2026, evaluating the SHRINCS post-quantum signature proposal for Bitcoin. The draft Bitcoin Improvement Proposal (BIP) specifies signature sizes ranging from 548 to 5,777 bytes, a significant increase from the 64 to 72 bytes used in current ECDSA and Schnorr schemes.

    Quantum Migration Timeline and Operational Risk

    Guillemet warned that Bitcoin’s quantum migration represents a protracted technical coordination challenge rather than an immediate hardware threat. The evaluation emphasizes that waiting for cryptographically relevant quantum computers to emerge would create substantial operational risk, given the years required for research, testing, and network-wide deployment of quantum-resistant solutions.

    The current Bitcoin custody framework relies on digital signatures vulnerable to quantum attacks. SHRINCS, authored by Conduition, Ethan Heilman, Mikhail Kudinov, Oleksandr Kurbatov, Jonas Nick, and remix7531, addresses this by relying exclusively on SHA-256 hash functions—Bitcoin’s native algorithm—avoiding additional hardness assumptions like lattice-based cryptography while targeting NIST Category 1 security standards.

    Technical Specifications and Trade-offs

    The draft establishes a 48-byte public key. Stateful signatures range from 548 to 4,619 bytes, while the stateless fallback signature reaches 5,777 bytes. This contrasts sharply with Bitcoin’s current space efficiency and introduces unprecedented operational requirements for custodial software and hardware.

    State Management Challenges

    The scheme uses one-time keys structured in a Merkle tree, requiring signers to maintain a persistent counter that never rolls back. Accidental backup restoration or concurrent signing events could trigger cryptographic slot reuse, enabling third-party signature forgery. If state desynchronization or data loss occurs, the seed phrase generates a 5,777-byte stateless signature, shifting the trade-off toward block space consumption rather than fund loss.

    Performance and Compatibility Constraints

    Hash-based key generation and stateless signature computation could take several minutes on contemporary secure hardware devices. The model does not preserve unhardened derivation under BIP32 or compact threshold signature schemes native to Schnorr. However, per-byte verification is computationally lighter than BIP340 Schnorr, consisting primarily of SHA-256 operations.

    Guillemet noted that larger transaction sizes will directly impact network bandwidth, storage overhead, and the ability of everyday users to operate full nodes.

    Governance and Community Consensus

    Beyond algorithmic parameters, the transition presents major community governance dilemmas. Achieving social consensus on the fate of dormant coins whose public keys have never been exposed to the blockchain looms as a more complex hurdle than selecting the mathematical standard itself.

    Ongoing Legal and Technical Context

    Ledger continues to navigate legal challenges from a class-action lawsuit filed August 27, 2026, in the U.S. District Court for the Southern District of New York (Case 1:26-cv-07307-VM), where plaintiffs seek at least $500 million in damages tied to prior data breaches. Technical discussions surrounding the SHRINCS draft will continue across Bitcoin developer mailing lists pending formal reviews of its security proofs.

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  • Lido DAO Proposes Contingent LDO Market-Making Mandate

    Lido DAO Proposes Contingent LDO Market-Making Mandate

    Lido DAO contributors have published a governance proposal authorizing a contingent market-making mandate for the $LDO token on centralized exchanges (CEXs). The measure is designed as a precaution against pair degradation and potential delistings as trading activity declines.

    Proposal Details and Timeline

    The proposal, titled “Authorize a Contingent $LDO CEX Liquidity Market-Making Mandate”, was posted to the Lido Governance forum on September 16, 2026. It has not yet proceeded to a formal vote.

    Why the DAO Is Acting: Declining Liquidity Metrics

    The proposal cites a sharp decline in $LDO trading volume, a trend the Lido Growth Committee says has made organic market making less profitable and left centralized-exchange pairs more vulnerable to exchange reviews. A delegate analysis included in the forum thread highlights the magnitude of the drop:

    • Average daily volume was roughly $96 million a year ago.
    • Over the past three months, that figure has fallen to approximately $33 million.
    • ±2% order-book depth on the $LDO/USDT pair stood at only $50,000–$90,000 per side as of early September.

    The Lido Ecosystem Foundation does not currently engage any market makers on $LDO pairs. The proposal frames the mandate as a preventive measure rather than an immediate commitment to activate a market-making agreement.

    How the Mandate Would Work: Structure and Limits

    If approved, the authorization would carry strict financial and temporal caps:

    • Stablecoin cap: 480,000 USDC.
    • Token cap: Up to $1.5 million in $LDO equivalent, limited to 7.5 million $LDO.
    • Expiration: The mandate expires two years after approval if never activated.

    The proposal favors a fixed-retainer compensation structure over option-based models. Disbursements would be executed through Easy Track motions to the Liquidity Observation Lab multisig.

    Activation Criteria

    Activation is not automatic. It depends on the Growth Committee determining that $LDO liquidity is insufficient or likely to become so. The committee would weigh factors including:

    • Order-book depth
    • Volume trends
    • Signals from exchanges regarding pair status

    If activated, the committee would negotiate with one or more professional market makers, evaluating venue coverage, reliability, creditworthiness, cost, and reporting quality.

    Scope, Governance Controls, and Next Steps

    The mandate does not approve any specific market maker, exchange, call option, or price-support activity. Delegates have pressed for tighter controls before offering support, specifically requesting:

    • Enhanced activation transparency
    • Token-denominated caps
    • Clear recall terms
    • Defined inventory handling procedures

    A pre-approved, capped response aims to avoid rushing governance decisions during a potential venue review or delisting process.

    Lido remains the largest liquid staking protocol on Ethereum, a position reinforced by its V3 mainnet launch. The DAO maintains an active history of treasury motions, as detailed in recent weekly DAO recaps.

  • US Bitcoin Reserve Bill Advances, but Odds of 2027 Law Drop to 6%

    US Bitcoin Reserve Bill Advances, but Odds of 2027 Law Drop to 6%

    The U.S. House Financial Services Committee advanced the American Reserve Modernization Act of 2026 (H.R. 8957) on September 16, marking a procedural milestone for the proposed Strategic Bitcoin Reserve. The legislation passed on a 28-21 party-line vote, with Republicans comprising the majority. Despite the committee approval, prediction markets now assign a 6% probability the bill becomes law by 2027, a sharp decline from the 60% odds recorded in December.

    Bill Overview: From Executive Decree to Legislative Mandate

    In March 2025, President Donald Trump signed an executive decree designating Bitcoin (BTC) as a national reserve asset. Converting that directive into binding federal statute requires congressional passage. H.R. 8957, introduced by Rep. Nick Begich (R-AK), codifies the reserve with the following core provisions:

    • A 20-year lockup period for acquired Bitcoin holdings.
    • An accumulation target of 1 million BTC over five years.
    • Budget-neutral acquisition mechanisms to avoid increasing the federal deficit.
    • Creation of a digital asset stockpile for altcoins alongside the Bitcoin reserve.
    • Mandatory third-party audits at regular intervals.

    Committee Vote and Partisan Dynamics

    The Financial Services Committee GOP confirmed the outcome via social media:

    H.R. 8957, the American Reserve Modernization Act, by @RepNickBegich, passed 28-21. pic.twitter.com/JizEPCA1Fp

    — Financial Services GOP (@FinancialCmte) September 16, 2026

    While framed as a bipartisan initiative, the vote split along party lines, signaling potential difficulty in securing the 60-vote Senate threshold required to overcome a filibuster.

    Key Headwinds Threatening Enactment

    Analysts cite three structural obstacles that explain the collapse in enactment probability:

    1. Legislative Precedent: CLARITY Act Rejection

    The recent failure of the CLARITY Act—despite 18 months of negotiation—demonstrates the difficulty of passing comprehensive digital-asset legislation in the current Congress.

    2. Congressional Calendar and Midterm Pressure

    Floor time is shrinking as leadership prioritizes must-pass spending bills and campaign-season messaging ahead of the 2026 midterm elections.

    3. Inter-Agency Oversight Dispute

    The Department of Justice’s Office of Legal Counsel is mediating a jurisdictional conflict among the Treasury, Commerce, and Justice departments over which agency will administer the multi-billion-dollar digital reserve. Resolution is a prerequisite for operational implementation.

    Bitcoin Market Reaction and Technical Outlook

    Bitcoin traded near $75,719 at press time, down from approximately $79,000 a week earlier. Two macro catalysts are weighing on price:

    • The Federal Reserve’s decision to raise interest rates for the first time since 2023, tightening dollar liquidity.
    • U.S. spot Bitcoin ETF flows turning negative by $450 million on September 15, per CoinMarketCap data.

    Short-Term Technical Levels

    • Immediate resistance: $76,000 – $77,000.
    • Key support: $75,719 (current zone).
    • Downside target on support break: $74,000 – $73,500.

    Traders are monitoring the legislative timeline; any further procedural delays could reinforce bearish momentum, while a surprise floor vote in the House could trigger a short-covering rally toward the $77,000 resistance band.

  • Ripple Legal Chief Offers Bullish XRP Outlook After CLARITY Act Failure

    Ripple Legal Chief Offers Bullish XRP Outlook After CLARITY Act Failure

    The U.S. Senate failed to advance the CLARITY Act on September 15, with a 49–50 procedural vote falling short of the 60-vote threshold required to move the legislation to formal floor debate. The outcome stalls a bill that previously passed the House of Representatives in July 2025 by a 294–134 margin.

    Senate Deadlock Halts Legislative Momentum

    The procedural vote concluded with 49 senators voting in favor and 50 against, preventing the measure from proceeding along its immediate regulatory path. Senate negotiations had stalled over objections surrounding public ethics standards and the regulatory oversight of decentralized protocols, despite the strong bipartisan showing in the lower chamber.

    Ripple Leadership Affirms Legal Standing

    Ripple Chief Legal Officer Stuart Alderoty emphasized that the company and its digital asset operate on established legal ground following the legislative impasse. In a post on his X account, Alderoty stated:

    Don’t forget – Ripple and $XRP stand on settled ground. The 2023 federal Court ruling established $XRP is not a security.
    And in March the SEC and CFTC issued a joint interpretation naming $XRP a digital commodity. SEC Chairman Atkins and a CFTC Chairman Selig understand these… https://t.co/63ML5xmbAP

    Alderoty referenced the 2023 federal court ruling that established programmatic sales of $XRP on exchanges do not constitute securities, effectively decoupling those transactions from classification as investment contracts.

    Market Reaction and Technical Indicators

    Over the past 24 hours, $XRP declined 7.95% to $1.29, according to CoinMarketCap metrics. Technical indicators suggest the breach below the 200-day moving average at $1.355 likely accelerated defensive sell orders following the Senate vote.

    Judicial Precedents and Regulatory Framework

    The company anchors its stance in administrative determinations established prior to the legislative debate. Official March 2026 documentation issued jointly by the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) categorized $XRP among sixteen digital assets recognized as digital commodities.

    According to financial sector reports, this interagency interpretation limits the company’s operating exposure to direct disputes regarding the commercial nature of the asset. Industry representatives note that the absence of comprehensive federal legislation shifts the task of defining operating boundaries back to agency-level technical rulemaking.

    Business Operations Continue Uninterrupted

    Corporate leadership maintains that business operations will proceed without adjustments in the wake of the legislative stall. According to remarks by Chief Executive Officer Brad Garlinghouse, commercial activity and cross-border agreements are maintaining their standard operational momentum.

    The Commodity Futures Trading Commission’s formal roadmap outlines the release of updated regulatory guidance for the spot market toward the end of the fourth quarter, which may provide further clarity on the regulatory treatment of digital commodities.

  • Analyst Predicts Bitcoin Could Surpass $90K by November on This Setup

    Analyst Predicts Bitcoin Could Surpass $90K by November on This Setup

    Bitcoin Analyst Predicts $90K by November Amid Bearish Sentiment

    Trader Matthew Hyland argues that Bitcoin is currently sitting at a daily cycle low with a bullish divergence forming on the charts, forecasting prices above $90,000 by early November. His call comes while BTC trades near $76,000, down sharply after the Senate failed to advance the CLARITY Act, and as the market’s most vocal participants remain predominantly bearish.

    Conflicting Technical Outlooks

    Posting on X, Hyland noted that bears were getting excited at what he considers a daily cycle low, with a bullish divergence setup forming underneath the price action.

    “See ya at $90k+ by early November,” he wrote.

    Swing trader Roman replied, “Yeah, part of me really thinks this was a low,” with Hyland acknowledging that the Relative Strength Index (RSI) could fall further, though he pointed to liquidity clustered around $75,000.

    “So far it was just a liquidity grab IMO,” he stated, adding that there was “not really much liquidity below” that level.

    Hyland added that current prices look solid to him, even though most bears still aren’t buying the bottom narrative and are hoping for a much deeper decline.

    That view contrasts sharply with more pessimistic calls on X. Analyst Ted Pillows highlighted that BTC has lost its 50-week Exponential Moving Average (EMA) and wrote:

    “a drop to $70K-$72K zone is highly likely before any reversal.”

    Fellow market watcher Crypto Patel has been tracking the bearish move since Bitcoin fell from $82,500 to roughly $74,900 following a rejection near an $83,000 bearish order block on the daily chart. He maintains a $50,000 target unless Bitcoin closes above $83,000 on a higher timeframe.

    On-Chain Data Points to Mid-Cycle Floor

    Taking a different approach, CryptoQuant contributor IT Tech focused on Bitcoin holdings rather than price structure. They observed that the 6- to 12-month supply band has climbed to 30.8% of realized cap, up from 16.2% in December last year—a pattern that aligned with the last three Bitcoin bottoms.

    The analyst characterized this as a bullish setup but stopped short of declaring it the cycle low outright, noting that the original cryptocurrency is still down nearly 40% from its peak.

    “this reads as mid-cycle floor building, not the cycle low.”

    CLARITY Act Failure Triggers Capitulation

    At the time of writing, BTC was trading near $76,000, down about 1.5% in 24 hours and nearly 5% over the past week, though still up close to 19% across the last 30 days.

    The decline follows Tuesday’s Senate vote, where cloture on the CLARITY Act failed to secure the 60 votes required to advance the legislation. As reported earlier by CryptoPotato, Bitcoin short-term holders sent more than 23,000 BTC to exchanges at a loss in the aftermath, totaling nearly $1.8 billion and marking the largest capitulation event in approximately a month.

  • Bitcoin Unable to Activate Soft Forks Currently, Drivechain Creator States

    Bitcoin Unable to Activate Soft Forks Currently, Drivechain Creator States

    Bitcoin Soft Fork Failures Signal Frozen Upgrade Process, Drivechain Creator Warns

    Bitcoin has not activated a single proposed soft fork since Taproot went live in November 2021, a trend that LayerTwo Labs CEO and Drivechain creator Paul Sztorc says points to a fundamental inability to approve consensus changes for the foreseeable future. Speaking to crypto.news, Sztorc framed the recent collapse of BIP-110 as evidence of a systemic coordination failure that extends well beyond one disputed upgrade.

    “All soft forks since Taproot have failed to activate, and this was no exception,” Sztorc said.

    BIP-110 Collapse Illustrates Miner Signaling Deadlock

    BIP-110, formally known as the Reduced Data Temporary Softfork, sought to impose seven temporary consensus restrictions for roughly one year (52,416 blocks). The rules included an 83-byte cap on OP_RETURN outputs, a 256-byte limit on certain data pushes, and constraints on some Taproot functions. Supporters such as Bitcoin Knots maintainer Luke Dashjr argued the measures would curb arbitrary data storage linked to inscriptions and keep Bitcoin focused on monetary transactions. Critics including Strategy Executive Chairman Michael Saylor and Blockstream co-founder Adam Back countered that the proposal could undermine Bitcoin’s neutrality by rejecting transaction structures the network currently accepts.

    The proposal’s voluntary activation mechanism required 55% of blocks in a difficulty period to signal support. By August 2, that threshold had become mathematically unreachable: only 28 of the first 1,108 blocks had signaled, yielding a support rate of roughly 2.53%. When the mandatory signaling period began at block 961,632 on August 8, nodes enforcing BIP-110 began rejecting non-signaling blocks. Most miners continued building on the dominant chain, causing the minority branch to stall after producing just two blocks.

    By August 9, the minority chain remained frozen at block 961,633 while the main chain advanced 111 blocks. OCEAN’s BIP-110 endpoint showed approximately 257 petahashes per second assigned to the minority branch, while Saylor estimated that 99.85% of Bitcoin’s hash power stayed with the dominant chain. The stall was exacerbated because the minority branch inherited Bitcoin’s mining difficulty of 127.48 trillion; without sufficient computing power, its miners could not quickly produce the blocks needed to trigger a difficulty adjustment.

    Consensus Barrier Extends to OP_CAT and Other Proposals

    Sztorc emphasized that BIP-110 is not an isolated case. Since Taproot activated at block 709,632 via the Speedy Trial process, numerous proposals — including OP_CAT, BIP-360, and others — have remained in discussion without achieving activation. OP_CAT, a 13-line opcode originally present in Bitcoin’s codebase before being disabled by Satoshi Nakamoto in 2010, has garnered developer support for enabling covenants, vaults, and programmable spending conditions. Yet Sztorc argues it faces the same insurmountable coordination hurdle.

    “Nothing can — not even OP_CAT, which is just 13 lines of code and was in the original software and had lots of support,”

    he said when asked how BIP 300 could overcome resistance to consensus changes.

    “Bitcoin cannot activate any soft forks, for the foreseeable future.”

    Other proposals confront identical obstacles. BIP-360 proposes a new output type for post-quantum signatures via soft fork, offering a path for users to migrate funds to quantum-resistant addresses. Its activation would require the same broad network agreement that Sztorc believes Bitcoin can no longer achieve.

    Drivechains Aim to Shift Experimentation Off the Base Layer

    Drivechains, specified in BIP 300 and BIP 301, are designed to let developers test new rules and applications on opt-in sidechains rather than repeatedly seeking changes to Bitcoin’s base layer. Under the two-way peg design, users could move BTC between Bitcoin and independent sidechains, each with its own rules for privacy, smart contracts, faster transactions, or other functions. Sidechains would maintain separate brands and software, similar to existing systems like Liquid and Lightning.

    “Each Drivechain will have its own brand, same as Liquid, Lightning, etc.,”

    Sztorc said, comparing the model to developers launching separate altcoins.

    However, Drivechains themselves require a consensus change on Bitcoin to deploy the proposed withdrawal system. Without activation, BIP 300 cannot move forward.

    “It cannot,”

    Sztorc said when asked how BIP 300 could overcome the resistance that stopped other proposals.

    Miner-Controlled Withdrawals Remain Central Security Debate

    BIP 300 assigns Bitcoin miners a pivotal role in approving withdrawals from Drivechains. Withdrawal requests would remain pending while miners vote through Bitcoin blocks; a request receiving sufficient support over the voting period could release BTC from the sidechain peg. Sztorc argues security depends on the economic value a popular sidechain creates for miners.

    “If the chain is popular, it will be generating fees for miners. If this fee revenue is large, relative to the number of circulating coins on the L2, then it will be secure.”

    Users would need to evaluate the relationship between sidechain fee revenue, miner incentives, and the value of BTC locked in the peg. Critics warn that miners could collude to approve invalid withdrawals, while supporters contend that attacking a profitable sidechain would destroy future fee income and damage system confidence.

    U.S. Mining Operations Highlight Governance Risks

    The BIP-110 episode demonstrated how American mining operations can become directly involved in Bitcoin governance disputes. Foundry USA Pool asked its mining customers to vote on BIP-110 signaling before the mandatory period, while Strategy — a U.S.-listed company and one of the largest corporate Bitcoin holders — publicly opposed the proposal through Saylor.

    The failed fork also created practical risks for holders. Because BIP-110 lacked automatic replay protection, Bitcoin developer Kevin Loaec warned that a transaction sent on one branch could potentially be copied to the other, putting pre-fork coins at risk if users attempted to move or sell assets on the minority chain without first separating them. Meanwhile, BIP-110 supporters prepared code for a possible proof-of-work change that would allow the stalled branch to abandon Bitcoin’s existing mining algorithm, though developer Chris Guida described it as a contingency with no activation date set.

  • Fed Decision to Determine Gold’s Next Move: XAUUSD Risks $4,355 Rejection or Eyes $4,388 Breakout

    Fed Decision to Determine Gold’s Next Move: XAUUSD Risks $4,355 Rejection or Eyes $4,388 Breakout

    Fed Rate Decision Looms as Key Catalyst for Gold Price Direction

    The Federal Reserve’s September 16 interest rate decision stands as the pivotal event for gold markets this week, with traders closely monitoring XAUUSD for signs of a decisive breakout or rejection following the FOMC announcement. Gold has rebounded from the $4,300 level to trade between $4,335 and $4,345 as markets price in a widely anticipated 25-basis-point rate hike.

    The central question for gold traders centers on whether Fed guidance, U.S. dollar movements, and Treasury yield reactions will push prices below the $4,355 resistance or provide sufficient momentum for a sustained break above $4,388.

    FOMC Meeting Schedule and Market Expectations

    The Federal Reserve’s September 15–16, 2026 FOMC meeting concludes with a policy announcement at 2:00 PM ET on Wednesday, September 16. The release will be followed by the Summary of Economic Projections (SEP), the updated “dot plot,” and a press conference with Chair Kevin Warsh at 2:30 PM ET.

    Markets are assigning approximately a 92% probability to a 25-basis-point rate increase, suggesting the immediate rate decision itself is unlikely to drive significant XAUUSD volatility. Instead, the gold price trajectory after the Fed decision will depend heavily on how the U.S. dollar and Treasury yields respond to the central bank’s forward guidance on the future policy path.

    Why Fed Guidance Drives Gold Price Action

    Gold’s price sensitivity to real interest rates and the U.S. dollar remains the fundamental driver. As a non-yielding asset, gold’s opportunity cost rises when real yields surge and the dollar strengthens. A hawkish surprise from the Fed could push yields higher and firm the dollar, pressuring XAUUSD lower. Conversely, a restrained or “one-and-done” policy message could ease yield and dollar pressures, supporting a relief rally in gold.

    At press time, spot gold was trading at $4,341.50, with traders awaiting either a rejection of the $4,355–$4,388 resistance zone or a move higher. The initial market reaction may involve a liquidity sweep near Monday’s $4,355 peak before a clearer directional move emerges. Key support levels to monitor if gold reverses include $4,304, $4,292, and $4,253.

    Dot Plot and Chair Warsh’s Commentary in Focus

    The updated dot plot will be scrutinized for any indication of a higher median rate path through 2026–2027. If projections signal continued tightening, or if Chair Warsh emphasizes persistent inflation risks and a readiness to hike further, Treasury yields could climb and the dollar could strengthen, creating headwinds for gold. More restrained forecasts, however, could alleviate yield and dollar pressures, allowing XAUUSD to stabilize or recover.

    Resistance Zone Analysis: $4,355–$4,388

    A Fed-driven strengthening of the U.S. dollar or rise in Treasury yields following the announcement could trigger a rejection of XAUUSD from the $4,355–$4,388 resistance zone. A price move above $4,355 that fails to hold above that level would constitute a liquidity sweep rather than a genuine breakout.

    Should rejection occur below $4,355, the resistance zone remains intact and exposes the aforementioned support levels at $4,304, $4,292, and $4,253. However, a sustained break above $4,388 would invalidate the rejection scenario and shift market attention toward the $4,443 target.

    Identifying a Liquidity Sweep vs. True Breakout

    A move above $4,355 signals a liquidity sweep rather than a legitimate gold breakout if XAUUSD quickly falls back below the level. In the event of a Fed-triggered reversal, traders should monitor $4,304, $4,292, and $4,253 as critical XAUUSD support levels.

    Conversely, sustained acceptance above $4,388 would confirm stronger upside momentum and shift the gold price forecast higher, with $4,443 becoming the next technical target. The $4,355 and $4,388 levels therefore represent the critical inflection points for gold prices following the Fed decision.

    Source: TradingView

  • JUICED Announces Loop Sunset with Key Changes for Users

    JUICED Announces Loop Sunset with Key Changes for Users

    JUICED Announces Loop Feature Sunset by End of September

    JUICED has confirmed significant changes to its Loop feature, with a complete retirement scheduled for the end of September. The announcement, shared via a tweet from @JupiterExchange, outlines reduced borrow limits to halt new looping activity and the conclusion of all associated incentives.

    Key Changes for JUICED Users

    • Loop retirement: The JUICED Loop feature will be fully retired by September 30.
    • Borrow limits reduced: New looping positions will be prevented through lowered borrowing thresholds.
    • Incentives ending: All Loop-related incentives will cease at the end of September.
    • Action required: Users with active JUICED loops are advised to close positions before the deadline to avoid additional fees.
    • Spot holders unaffected: Users simply holding JUICED tokens do not need to take any action.

    Fee Magnifier Coming Soon

    A fee magnifier will be applied to remaining Loop positions later this month, increasing urgency for users to unwind their positions. This measure aims to accelerate the wind-down process ahead of the final retirement date.

    Market Context and Token Metrics

    The announcement arrives amid mixed signals across the broader crypto market. JUICED’s trading activity currently shows minimal movement, with a 24-hour volume of $0 and no reported price changes. This dormancy reflects the current uncertainty as users reassess strategies in response to the new limitations.

    JUICED is a yield-focused token that previously offered various earning opportunities through its Loop mechanism. The decision to sunset this feature signals a strategic shift in the protocol’s operations, likely influenced by evolving market conditions and user feedback regarding Loop functionality.

    What Traders Should Monitor

    Market participants should watch the JUICED ecosystem closely as the Loop sunset progresses. Given the current lack of trading activity, any changes in user engagement could trigger volatility in the token’s performance. Key factors to monitor in the coming weeks include:

    • Liquidity shifts as users exit Loop positions
    • Overall market sentiment toward the protocol
    • Potential new feature announcements or strategic pivots
    • Trading volume recovery post-September deadline

    As users adapt to the new rules, the overall impact on liquidity and market sentiment will be crucial indicators of JUICED’s trajectory heading into the final quarter of the year.

  • Aave Plans RWA Hub on Avalanche with USA₮ Support

    Aave Plans RWA Hub on Avalanche with USA₮ Support

    Aave Launches Dedicated RWA Credit Market on Avalanche via V4 RWA Hub

    Aave is preparing to launch a dedicated real-world asset (RWA) credit market on Avalanche through its upcoming Aave V4 RWA Hub. The new infrastructure will enable institutions to borrow against tokenized assets without liquidating their underlying positions, marking a significant step in bridging traditional finance with decentralized lending protocols.

    USA₮ Stablecoin to Serve as Initial Borrowing Asset

    The RWA Hub will debut with support for USA₮, Tether’s dollar-backed stablecoin issued by Anchorage Digital Bank. This integration provides institutions with access to on-chain dollar liquidity while using tokenized assets as collateral. USA₮ offers a federally regulated digital dollar option for borrowing and settlement within the new market structure.

    Built on Aave V4’s Hub and Spoke Architecture

    Leveraging Aave V4’s existing Avalanche deployment, the RWA Hub employs a Hub and Spoke architecture that creates specialized credit markets with independent collateral rules and risk parameters. These individual markets remain connected to Aave’s broader liquidity network, allowing risk isolation while drawing from shared liquidity pools.

    Aave indicated the structure could support a diverse range of tokenized assets, including:

    • Tokenized Treasuries
    • Money market funds
    • Private credit
    • Real estate
    • Corporate bonds

    Rapid Growth in Tokenized RWA Market

    The launch coincides with substantial growth in the tokenized real-world asset sector, which has expanded approximately 40% this year to exceed $51 billion in total value. Avalanche currently hosts more than $3.4 billion in tokenized assets, positioning the network as a key infrastructure layer for institutional adoption.

    Moving Beyond Issuance to Active Utility

    Aave founder Stani Kulechov stated the new market is intended to move tokenized assets beyond issuance and allow institutions to use them directly as collateral in credit markets. This approach helps institutions access capital without having to sell tokenized holdings, preserving long-term positions while unlocking immediate liquidity.

    Part of Broader Aave V4 Rollout

    The RWA Hub launch extends Aave’s existing presence on Avalanche and forms part of the broader rollout of Aave V4, which is designed to support specialized lending markets for different asset classes. The upgrade introduces modular architecture that enables customized risk parameters and collateral configurations for specific institutional use cases.