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Bermuda is moving government payments onto Stellar, piloting USDC‑based rails with Circle and Coinbase as it chases a fully on‑chain national economy and cheaper cross‑border flows.

Summary

Bermuda’s government is migrating parts of its payments infrastructure to the Stellar blockchain as it pursues a fully on-chain national economy. The move builds on Bermuda’s digital asset strategy and Premier David Burt’s engagement with U.S. policymakers at the DC Blockchain Summit. It coincides with Stellar’s push as a stablecoin settlement layer, reinforced by a new integration with crypto payments network Mesh. The government of Bermuda is moving elements of its public payment infrastructure onto the Stellar blockchain, advancing its ambition to become the world’s first fully on-chain national economy, according to an official government announcement.

Bermuda deepens on-chain economy bet with Stellar The British Overseas Territory said government agencies will “begin piloting stablecoin-based payments,” with financial institutions integrating tokenization tools and residents transacting via digital wallets as part of a “modern, efficient” on-chain economy.

Unveiled at the World Economic Forum in Davos, the plan aims to “make the British Overseas Territory the world’s ‘first fully on-chain national economy’,” as reported by GlobalGovernmentFinance. Bermuda is partnering with Circle, issuer of the USD Coin (USDC) stablecoin, and crypto exchange Coinbase to deliver the digital asset infrastructure, with government agencies piloting on-chain payments and local financial institutions “integrating tokenisation tools” into their services.

Authorities argue that embedding blockchain-based payments directly into day-to-day economic activity is a response to structural constraints faced by small island economies, including high transaction costs and limited access to global banking networks. The government said the transition to an on-chain economy is expected over time to deliver “lower transaction costs” and “greater access to global finance through modern digital wallets,” while keeping “economic value circulating locally,” according to its statement.

Premier David Burt has been actively selling that vision abroad, most recently at the DC Blockchain Summit in Washington, where he met U.S. policymakers and industry leaders to discuss “stablecoin frameworks, tokenised markets, digital asset insurance and financial market integrity,” the government said in a separate update. Burt has pointed to Bermuda’s 2018 Digital Asset Business Act and the island’s regulatory regime as examples of how “responsible digital asset innovation and regulation” can co-exist, positioning the country as a testbed for on-chain public finance.

At the same time, Stellar is consolidating its role as a stablecoin settlement layer, with crypto payments network Mesh announcing that it has integrated Stellar as a “core settlement layer across the Mesh ecosystem,” according to a PRNewswire release. “Stellar has been running the financial rails that institutions trust for over a decade, with the uptime, fiat connectivity, and cross-border reach that serious payment flows demand,” Mesh co-founder and CEO Bam Azizi said, adding that the partnership “creates a framework for deeper collaboration as demand for stablecoin payments continues to grow.”

With stablecoin market capitalization on Stellar recently surpassing $400 million, driven largely by USDC, the network is proving its ability to handle real-world payment flows, according to coverage from altFINS. For Bermuda, anchoring government payments and future public services to that infrastructure is a bet that blockchain rails can cut fees, speed up settlement and widen access to dollar liquidity for residents and businesses alike.

In brief Anthropic admitted its invisible LLM-development safeguards were "the wrong tradeoff" and will replace them with visible fallbacks to Claude Opus 4.8, starting this week. Flagged requests on the API will now return a reason for their refusal, rather than silently delivering a degraded answer. Making the safeguards visible means they'll be easier to work around. Anthropic spent about 48 hours as the AI industry's villain of the week before blinking.

The company launched Claude Fable 5 this week to immediate backlash over a safeguard buried in its 319-page system card: The model, the first of the company’s new Mythos class, would secretly degrade its own responses for users it suspected were building competing AI models—no warning, no fallback message, just quietly worse output. By Thursday, Anthropic was apologizing.

We’re rolling out changes to make Fable 5’s safeguards for frontier LLM development visible.

Starting this week, flagged requests will visibly fall back to Opus 4.8—the same as our safeguards for cyber and bio. You will see this every time it happens. On the API, any flagged…

— ClaudeDevs (@ClaudeDevs) June 11, 2026

"Invisible safeguards can be targeted more narrowly, allowing us to ship quickly with very few false positives. We went with invisible safeguards for this reason—and that was the wrong tradeoff," the company posted on X. "You should have visibility into the safeguards we have in place, and why.”

“We're sorry for not getting the balance right."

Starting this week, flagged requests will visibly route to Claude Opus 4.8, a less capable model, instead of silently delivering degraded Fable output. API users will receive a stated reason when a request gets refused. Anthropic says server-side fallback notifications will roll out in the next few days.

What was actually happeningFor non-technical readers, here's what the controversy was actually about. Claude Fable 5 already had visible safeguards for cybersecurity and biology research—if you asked something that tripped those filters, you'd get a notification that your request was being rerouted to the older Opus 4.8 model. You knew something had changed. You could adjust your prompt or use a different tool.

However, these safeguards were too extreme, some bio researchers noted.

The LLM-development safeguard, however, worked differently. If Fable 5 detected you were working on things like pretraining AI systems, building distributed training infrastructure, or designing machine learning chips, the model would silently alter its own behavior—through prompt modification, steering vectors, or parameter tweaks—to give you a worse answer without telling you. You'd get a response. It just wouldn't be from the Fable 5 you paid for.

Fable 5 is billed as the public face of Anthropic's most capable Mythos-class model, and researchers using it for legitimate machine learning work had no way to know their results were contaminated. A failed experiment looks the same whether your hypothesis is wrong or the model was quietly told to underperform. That's the reproducibility problem that sent the AI research community into full meltdown mode.

The problem was the classifier wasn't that precise. AI research firm SemiAnalysis was among the first to publicly call them out after seeing their GPU inference research get flagged.

BREAKING NEWS: Anthropic's latest model will NOT help you if it thinks your ML research/ML engineering is interesting, and/or will secretly degrade its IQ so that the average engineer won't notice. We are already seeing Anthropic's latest model's moderation filters our GPU… pic.twitter.com/9sa95cCSvS

— SemiAnalysis (@SemiAnalysis_) June 9, 2026

The catch in the fixAnthropic's reversal comes with a direct admission of the tradeoff it's accepting. Making safeguards visible makes them easier to bypass, which means the classifier has to cast a wider net to remain effective.

More false positives—legitimate machine-learning work that gets caught and rerouted—are coming while the company tunes its systems. Anthropic said it's working to reduce false positives "as fast as possible" but offered no timeline.

The company is also applying the same cleanup to its biology and cybersecurity classifiers, which had drawn their own complaints about flagging harmless research prompts.

That said, the remaining concern is that Anthropic isn't dropping this category of restrictions—it's only making them visible. For those who believe the restrictions themselves are wrong, Thursday's apology is a partial fix. Fable 5 remains free on Pro, Max, Team, and Enterprise plans until June 22, after which it shifts to API usage credits only

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In brief A federal judge dismissed xAI's trade secret lawsuit against OpenAI without leave to amend. Judge Rita Lin found xAI failed to show OpenAI induced a former xAI engineer to disclose trade secrets. The ruling follows Musk's loss in a separate lawsuit accusing OpenAI of abandoning its nonprofit mission. A federal judge has dismissed xAI's trade secret lawsuit against OpenAI, finding that Elon Musk's AI company—which he’s since folded into SpaceX—failed to show that the ChatGPT maker improperly obtained confidential information related to its Grok chatbot.

In a court order on Monday, U.S. District Judge Rita Lin granted OpenAI's motion to dismiss without leave to amend, concluding that xAI failed to prove OpenAI encouraged a former xAI engineer to disclose trade secrets during the recruiting process.

“xAI insufficiently pled inducement in the prior complaint because it offered no nonconclusory allegations allowing a reasonable inference ‘that OpenAI told or encouraged’ xAI’s former employees to exfiltrate its confidential information,” the order said.

The decision is the second defeat that Musk—who co-founded OpenAI before departing in 2018—has suffered in his ongoing feud with OpenAI and CEO Sam Altman.

Last month, a federal jury rejected Musk's $150 billion lawsuit alleging that OpenAI, Altman, and co-founder Greg Brockman abandoned the organization's founding nonprofit mission by shifting toward a commercial structure and deepening its relationship with Microsoft.

This latest lawsuit centered on a presentation Xuechen Li, a former xAI engineer, gave while being recruited by OpenAI, which xAI alleged the ChatGPT developer targeted because of his work on Grok 4's reinforcement learning and post-training systems. The complaint accused OpenAI of knowingly seeking confidential information about those efforts.

Lin rejected that argument, writing that "merely asking Li to discuss his previous work—a routine part of the hiring process—does not allow a plausible inference that OpenAI induced Li to reveal anything confidential or secret about that work." She added that accepting xAI's theory could "potentially expose employers to liability any time they inquire about a candidate's past work."

The judge also found that xAI failed to show OpenAI knew or should have known Li disclosed trade secrets during the presentation.

“These allegations are insufficient to support a reasonable inference that OpenAI knew or should have known that Li disclosed xAI trade secrets during his presentation,” Lin wrote. “It is not clear how much detail Li shared about xAI's reinforcement learning techniques. Similarly, while xAI does not allege that Li actually displayed the slide deck during his presentation, even assuming he did, the level of detail contained in the slides remains unclear.”

The decision also comes as Musk became the world's first trillionaire following SpaceX's record-breaking IPO, which valued the company at around $1.77 trillion and cemented the rocket company's position as one of the world's most valuable firms.

SpaceX (SPCX) shares continued to soar Monday amid a broader market surge following the announcement of a ceasefire between the U.S. and Iran, rising nearly 20% by close to finish the day at $192.50. That gives the firm a valuation above $2.5 trillion.

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DOJ Backs xAI in Pollution Lawsuit, Raising Stakes for SpaceX Shares

TLDR Table of Contents

TLDRNew Security Capabilities Introduced for IBM Z PlatformAI-Powered Database Tool Joins Z PortfolioStock Pressure Persists Despite Mainframe InnovationGet 3 Free Stock Ebooks Shares of IBM dropped 5.05% even as the company rolled out new Z platform security solutions. The zSecure Detection tool focuses on identifying ransomware threats and unusual system patterns. IBM’s zSecure Secret Manager streamlines certificate lifecycle processes on z/OS systems. The Z Database Assistant leverages agentic AI technology to assist database administrators. IBM’s stock price settled at $249.10 following a decline from the $262 level. Shares of IBM (IBM) experienced a notable decline on Thursday, closing down 5.05% at $249.10 despite the tech giant’s announcement of an expanded software suite for its Z mainframe platform. The stock had traded above $262 earlier in the session before selling pressure intensified. The downward movement persisted even as IBM rolled out new capabilities designed to enhance security monitoring and database management for enterprise customers.

International Business Machines Corporation, IBM

New Security Capabilities Introduced for IBM Z Platform IBM revealed the general availability of three software solutions targeting its Z mainframe ecosystem. The new offerings concentrate on threat detection, automated certificate lifecycle management, and database optimization. According to the company, these tools respond to escalating security challenges facing organizations operating mission-critical infrastructure.

The zSecure Detection solution enables security teams to identify potential ransomware attacks and anomalous system behavior across IBM Z environments. It provides investigation capabilities and incident response features specifically designed for z/OS platforms. Consequently, organizations can enhance their security posture for mainframe workloads without migrating to alternative systems.

Meanwhile, IBM zSecure Secret Manager addresses certificate governance challenges across both IBM Z and LinuxONE platforms. Leveraging IBM Vault Self-Managed for Z technology, the solution automates certificate lifecycle monitoring and management. The tool specifically tackles complications arising from shortened certificate validity periods and dispersed management frameworks.

AI-Powered Database Tool Joins Z Portfolio IBM simultaneously introduced the Z Database Assistant designed to support database administration teams. This solution incorporates agentic AI capabilities to streamline routine database management workflows. The objective centers on enhancing system performance while maintaining data integrity and availability.

IBM framed the software releases within its comprehensive hybrid cloud and security vision. The technology provider noted that enterprises increasingly operate sensitive applications under stringent regulatory frameworks. Accordingly, IBM emphasizes its commitment to developing solutions that support resilient enterprise technology foundations.

The company also referenced connections to its Project Glasswing and Project Lightwell initiatives. These programs focus on security research advancement and open-source security community contributions. Nevertheless, these positive developments failed to prevent the stock’s decline as broader market dynamics outweighed the product announcements.

Stock Pressure Persists Despite Mainframe Innovation IBM has consistently promoted its Z platform as a highly reliable enterprise computing solution. The company highlights average annual downtime of less than one-third of a second. IBM also emphasizes uptime metrics exceeding 99.999999% for production workloads.

The software releases arrive as organizations navigate increasingly complex regulatory and security landscapes. Financial institutions, telecommunications providers, healthcare organizations, and government agencies continue to depend on IBM’s infrastructure platforms. IBM maintains its position as a key provider of enterprise-grade computing systems for critical operations.

Despite these developments, IBM stock finished the session at $249.10 following a significant intraday pullback. Shares retreated from levels above $262 before finding support near the $250 mark. The sell-off demonstrated that product innovation announcements were insufficient to offset broader selling pressure during the trading session.

An attacker has used an “infinite mint” bug in a vulnerable smart contract on the Secret Network to create unbacked, wrapped versions of Axelar-wrapped assets, resulting in a $4.67 million exploit. 

The exploit happened on June 10 but was discovered a week later on Wednesday, after a failed cross-chain transaction caused by an “insufficient funds” error in the drained account was detected, blockchain research firm Common Prefix reported on Friday.

The attacker redeemed the Axelar-wrapped assets (saTokens) back over legitimate channels to drain the real Axelar-wrapped assets held in escrow because the smart contract did not verify the source of the inbound transfer before minting, so “deposits forged over an attacker-controlled channel minted genuine saTokens with no assets backing them,” Common Prefix said.

It is the latest in a series of crypto protocol hacks and exploits this month, which now number at least 22, according to DeFiLlama. The Secret Network was one of the largest, behind the Humanity Protocol and Syscoin Bridge, which lost $32 million and $8 million, respectively, earlier this month.

The Secret Network is a privacy-focused, layer-1 blockchain built on the Cosmos ecosystem, and Axelar is a decentralized interoperability network that connects different blockchain ecosystems.

The Axelar-wrapped assets minted without backing in the exploit included saUSDT, saUSDC, saDAI, saWETH, saWBTC, saWBNB and sawstETH.

The attacker moved the exploited assets to the Ethereum blockchain and converted them to Ether (ETH). They then split the haul between around 30 wallets, eventually depositing the funds into exchanges including KuCoin, ChangeNow, and HitBTC, according to Common Prefix.

“If you hold Axelar-bridged saXXX tokens on Secret, please be aware their backing was affected, and your funds may be lost,” the Secret Network said on Saturday. 

Stolen funds split into multiple wallets for obfuscation. Source: Common Prefix

The Secret Network’s token, Secret (SCRT), was not impacted by the incident, but it remains down 99% from its 2021 all-time high, currently trading at $0.058. Axelar’s native token, Axelar (AXL), is in a similar state, trading at $0.045, down 98% from its 2024 peak. 

Axelar posted a confirmation on Saturday following “some confusion” around the incident.

“Neither Axelar nor IBC [Inter-Blockchain Communication] was compromised. The exploited token smart contract was not developed, deployed, or maintained by Axelar. Axelar’s firewalling prevented the impact from spreading to other chains,” it said. 

Magazine: Bitcoin decouples from tech stocks, Ether eyes ‘selling wave’: Market Moves

Cointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.

Growing concerns around quantum breakthroughs are starting to reshape conversations across DeFi.

Quantum computing is no longer a distant theoretical threat. That perception is rapidly changing. Recent research from Google, Quantum AI, Ethereum Foundation and Stanford suggests that breaking widely used cryptography could require far fewer quantum resources than previously believed.

The immediate risk is not that Bitcoin or Ethereum suddenly collapse tomorrow. The real challenge is timing: blockchains depend heavily on cryptography, and as blockchains become critical financial infrastructure, upgrading global financial infrastructure takes years.

That is why quantum computing is becoming a serious topic of discussion in the crypto industry, and DeFi appears to be better positioned to adapt to this potential threat.

Why quantum computing matters for cryptoModern blockchains rely on public-key cryptography to secure:

walletssignaturestransactionssmart contractsToday’s systems are secure against classical computers because deriving private keys from public keys is computationally infeasible.

Quantum computers could eventually change that.

In particular, researchers focus on Shor’s algorithm, a quantum algorithm theoretically capable of breaking elliptic curve cryptography (ECC), which underpins many blockchain systems. Google researchers recently estimated there is now a 10% chance that “Q-Day” — the point at which quantum computers can break modern public-key cryptography — could arrive by 2032.

That timeline remains highly debated. But the direction is clear:

quantum risk is increasingly treated as an infrastructure problem, not science fiction.

The growing urgency around post-quantum securityIn April 2026, Nature reported that recent quantum advances are “imminent risk” to cybersecurity infrastructure.

At the same time, Google and Caltech research suggested that the cost of breaking traditional encryption may be dropping faster than expected.

This has triggered broader conversations around:

post-quantum cryptography (PQC)quantum-resistant walletsmigration timelinesblockchain governance upgradesThe challenge is not just technical.

Crypto systems are decentralized. Upgrading cryptographic standards across:

walletsexchangessmart contractsLayer-2sbridgescustody systemsis operationally complex.

That makes preparation critical.

Why DeFi could be especially exposedDeFi is highly composable and deeply interconnected.

That creates unique vulnerabilities in a post-quantum scenario.

If quantum systems eventually compromise private keys or signature systems, the consequences could cascade across:

liquidity poolslending marketscross-chain bridgesvault systemsDAOsSome analysts argue that dormant wallets with publicly exposed keys may become especially vulnerable over time.

This is one reason why a blockchain-specific variant of “harvest now, decrypt later” concerns is growing. Unlike traditional HNDL scenarios involving intercepted encrypted communications, blockchain data is already public. Public keys exposed in past on-chain transactions are permanently visible, meaning attackers would not need to harvest anything — the data needed to derive private keys with a future quantum computer is already sitting on-chain for attackers to collect.

DeFi’s advantage: adaptabilityIronically, crypto may also have an advantage.

Unlike traditional banking systems, blockchain protocols are designed to evolve through:

upgradeshard forksgovernance proposalsmodular infrastructureForbes recently argued that quantum computing represents less of an existential threat and more of a forced redesign of blockchain security architecture.

That adaptability may become one of DeFi’s biggest strengths.

Why this matters for the future of DeFiQuantum computing highlights a broader reality:

DeFi is becoming critical infrastructure.

As institutional adoption grows, the industry increasingly needs:

long-term security planningcryptographic agilityresilient execution infrastructureupgrade-ready protocolsThe conversation is no longer: “Will quantum computing affect crypto?”

It is increasingly:  “How should crypto prepare?”

Challenge: preparationQuantum computing does not mean the end of crypto or DeFi.

But it does mean the industry will likely need to evolve its security foundations over time.

The good news:

post-quantum cryptography already existsmigration discussions are already happeningblockchain systems can upgradecrypto infrastructure is inherently adaptableThe challenge now is preparation.

As DeFi matures into global financial infrastructure, quantum resilience may eventually become as important as scalability, liquidity, and interoperability.

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It’s Bitcoin Pizza Day. Behind the memes, plenty of users have a serious question. Can Bitcoin’s period of explosive growth ever repeat?

Sixteen years ago, an independent programmer named Laszlo Hanyecz ordered two pizzas from a Papa John’s on Atlantic Boulevard in Jacksonville, Florida. Ordinarily, it would have been an unremarkable takeaway order. What made it historic was the means of payment: Hanyecz paid 10,000 Bitcoin for the pizzas - worth roughly $41 at the time.

Hanyecz was one of Bitcoin’s earliest developers and contributed code to the project itself, including some of the first experiments with GPU mining. What he could not foresee was how dramatically Bitcoin’s value would rise in the years that followed.The question is, can that pattern possibly repeat itself? In 16 years’ time, will we be sharing memes about people who sold at $70,000?  Or are the days of 1000x firmly behind us?

A decade of impressive growthBitcoin’s growth over the past decade has been one of the most dramatic examples of exponential adoption in modern financial history. When Bitcoin launched in 2009, it had effectively no market value. By 2013, it briefly crossed $1,000 for the first time. 

In 2017, it surged close to $20,000 during the first major retail-driven crypto bull market. By 2021, Bitcoin reached nearly $69,000, and in 2025 it climbed above $120,000 amid accelerating institutional adoption and inflows into spot Bitcoin ETFs.

Adoption as a driverThis growth has not been driven by price alone. On-chain activity and adoption metrics have expanded significantly over time. According to Dune Analytics, the Bitcoin network now processes millions of weekly transactions and maintains millions of active addresses.

Institutional adoption has also accelerated Bitcoin’s expansion. The launch of spot Bitcoin ETFs in the United States in 2024 marked a major turning point. By mid-2025, US spot Bitcoin ETFs had attracted more than $50 bln in cumulative inflows, with major financial firms such as BlackRock participating directly in the market.

Will that repeat again?The big question many in the crypto community are asking is whether Bitcoin will ever repeat its past pace of growth. And this is where opinions differ.

Last month, Michael Saylor, head of Bitcoin custodian Strategy, reiterated an ultra-bullish long-term outlook for Bitcoin, projecting that Bitcoin could eventually reach $10 mln per coin.

Tom Lee, head of Ethereum treasury firm BitMine, repeatedly reaffirmed one of the most bullish near-term institutional BTC targets during early 2026 and maintained his famous $250,000 Bitcoin target.

Cathie Wood, CEO of ARK Invest, also remained one of the strongest institutional Bitcoin bulls throughout early 2026.

Meanwhile, skeptics are predicting Bitcoin’s collapse from the current levels.

Peter Schiff, a longtime Bitcoin critic, repeatedly warned of a major BTC collapse during early 2026. “Bitcoin could crash to $20,000 or lower.”

“There is no organic use case reason for Bitcoin to slow or stop its descent,” Michael Burry, an investor known for predicting the 2008 financial crisis, claimed, adding that if the Bitcoin price plunges to $50,000, BTC mining companies that secure the network and process transactions in exchange for fees and newly minted bitcoins could face bankruptcy.

1inch doesn't comment on price movements, and we never give financial advice. And you probably have your own take on this anyway.  What we're interested in is utility. What excites us about DeFi isn't asset price fluctuation. It's the capacity this technology has to transform access to finance, for everyone around the world, and free us all to take true control of our assets.

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The CLARITY Act could give US crypto its clearest rulebook yet. The bill aims to define and categorize digital assets, who oversees digital assets, how crypto businesses must operate and what protections consumers should expect.

For years, US crypto regulation has revolved around one unresolved question: is a digital asset a security, a commodity or something else entirely?

The CLARITY Act is an attempt to finally draw that line.

Officially called the Digital Asset Market Clarity Act of 2025, the bill would split oversight among the Securities and Exchange Commission (SEC), Commodity Futures Trading Commission (CFTC), U.S. Treasury with respect to AML/CFT requirements, set clearer rules for crypto trading platforms and strengthen consumer protection standards. The House passed it in July 2025. Now, the bill needs Senate approval before it can become law.

What the CLARITY Act is trying to fixThe US crypto market has grown faster than its rulebook.

Prior to the CLARITY Act, crypto and blockchain projects, exchanges and DeFi builders have operated under an unclear legal regime. There was no specific law that governed the industry; regulatory agencies such as the SEC and the CFTC have attempted to create guidelines often via enforcement action against industry players. These actions have led to some court decisions which have added some detail around when and how digital assets and those who build, trade, distribute or otherwise transact in them should be regulated, but without laws, there was no cohesive and comprehensive framework.

The CLARITY Act is the first comprehensive legislative attempt to turn that patchwork into a clearer framework for the industry to operate under.

In simple terms, the bill tries to define:

when a digital asset should be regulated by the SEC;when a digital asset should fall under the CFTC;how crypto trading platforms should register;how customer assets should be protected;what disclosures crypto businesses should provide;what anti-money launder (AML) and counter-terrorim financing (CFT) checks, record-retention, suspicious activities monitoring and reporting and customer identification requirements intermediaries (brokers, dealers, and exchanges) need to follow;when decentralized / non-custodial activity is excluded from regulation.That matters because uncertainty stifles innovation and creation. Builders need to know which rules apply. Traders need to know what protections exist. Traditional and digital native institutions need a legal framework before they can move deeper into digital assets.

Why consumer protection is centralThe CLARITY Act is not only about agency turf.

A major part of the bill is about making crypto businesses operate with clearer standards around custody, disclosures and the handling of customer assets. According to Axios, the legislation would require crypto dealers and brokers to segregate customer funds and disclose conflicts of interest — the very failures that brought down FTX.

Orest Gavryliak, chief legal officer at 1inch, sees this as one of the bill’s key strengths.

“The Act, through its many sections, establishes more detailed laws with regard to custody, segregation of customer assets, disclosure and operations, providing a solid foundation for consumer protection in the digital asset industry,” he said.

Consumer protection in crypto should not only mean warning people about risk. It should also mean building systems where risk is easier to understand, customer assets are handled properly and platforms operate under clearer rules.

What changes for DeFi?The CLARITY Act is mainly a market structure bill. That means it focuses on how digital asset markets are classified, regulated and supervised.

The latest draft contains DeFi carve-out exempting non-custodial software, UI providers, and blockchain developers from regulation, but the impact on DeFi would depend on the final text and how regulators implement it via rulemaking. 

But the broad direction is clear: the US is moving from regulation by enforcement toward written laws that provide a clearer roadmap for the industry. That could make it easier for serious DeFi infrastructure to integrate with institutions, wallets, trading systems and future user interfaces.

This does not mean DeFi becomes risk-free. Smart contract risk, self-custody risk and market risk remain.

But clear rules can help weed out bad actors from serious infrastructure. That is good for users. It is also good for builders who want to operate transparently with high security standards.

Why the CLARITY Act matters beyond today’s crypto appsThe next wave of crypto use may not look like today’s DeFi.

More interactions could happen through AI agents. You may ask an agent to rebalance a portfolio, execute a swap, move assets across chains or interact with a protocol on your behalf.

That future needs rules before it becomes mainstream.

Orest says the CLARITY Act could help prepare the market for this shift: “Consumers will also benefit from non-traditional, crypto-related businesses. If passed, the CLARITY Act will also lay the groundwork for the next wave of interactions between users and AI agents.”

According to Orest, blockchain rails could become the backend for AI-driven finance.

“Blockchain rails will provide the seamless backend for AI to execute trades, handle investments and engage with networks and other AIs on users’ behalf,” he said. “Having a regulated, structured environment in place before that wave arrives is exactly the kind of forward-thinking consumer protection that matters most.”

The CLARITY Act is not only about today’s exchanges. It is about creating the foundation for digital asset infrastructure to support the next phase of automated, on-chain finance.

Where is the CLARITY Act now?As of now, the CLARITY Act is not yet law. The House passed the bill in July 2025 by a 294-134 vote. After that, the bill moved to the Senate, where it finally cleared the Senate Banking Committee on 14 May 2026 with a bipartisan 15–9 vote.

What happens next?The CLARITY Act still needs several steps before enactment.

First, the Senate Banking Committee and Senate Agriculture Committee are currently merging and reconciling their two draft versions of the CLARITY Act into a single version. The committees are aiming to finish this by June 2026.

Second, this version must pass the full Senate floor, which requires a minimum of 60 votes (out of 100 total votes). The target is to finish this in July.

Third, the version that passes the full Senate, must be reconciled with the House version passed last year. Both chambers must then pass the final, identical text. Again, the target is to finish this in July, before the August summer recess.

Finally, the bill goes to the president. It becomes law only after presidential signature.

If the bill misses the July window, it faces the risk that Congress will not advance controversial, structural bills right before Congressional elections, also known as mid-terms, as the Congressional elections are designed to occur midway through a President’s 4 year term. This could push negotiations into a post-election session which means it may be delayed to 2027 or beyond.

What to watch nextThe next important signals are practical.

Watch for:

agreement on stablecoin rewards clarity on what decentralization means, i.e. when and to whom does the DeFi exemption apply;Update on ethics provision related to President Trump's crypto holdings .Until then, the CLARITY Act remains a major legislative proposal, not binding law.

The bottom lineThe CLARITY Act is the most important crypto bill to watch.

If enacted, it could give digital asset markets a clearer legal foundation. It could also help prepare the industry for a future where DeFi, wallets, trading platforms and AI agents interact more directly.

For users, the key promise is simple: clearer rules, stronger protections and a more structured and secure environment for on-chain finance.

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DeFi enables on-chain swapping, borrowing and earning through smart contracts, without relying on traditional financial intermediaries.

If you’ve ever swapped tokens, earned yield or borrowed crypto from a wallet, you’ve already used decentralized finance, or DeFi. Instead of relying on banks or brokers, DeFi uses smart contracts to execute transactions transparently on a blockchain.

That shift matters. DeFi changes how value moves by letting you interact directly with code. The result is a financial system that is open, composable and accessible to anyone with a crypto wallet.

DeFi, short for decentralized finance, is a system of financial applications built on blockchain networks that operate without centralized intermediaries like banks or brokers.

Instead of accounts and institutions, DeFi relies on:

Smart contracts to execute logicLiquidity pools to facilitate trading and lendingWallets to give users direct control over fundsIn practice, this means you can:

Swap tokensLend and borrow assetsEarn yieldProvide liquidityIn most DeFi interactions, you retain direct control of your funds through your wallet, without transferring custody to a centralized third party. Individual protocols may vary.

How DeFi actually worksDeFi works by combining smart contracts with on-chain liquidity and user-controlled wallets.

1. Smart contracts replace intermediaries

Smart contracts are self-executing programs deployed on a blockchain. They define the rules of a financial interaction and automatically enforce them.

For example:

A lending protocol locks collateral and issues a loanA swap contract exchanges tokens at a market rateA yield strategy distributes rewards based on participationOnce deployed, these contracts are designed to execute according to their coded logic.

2. Liquidity pools power markets

Instead of traditional order books, many DeFi platforms use liquidity pools.

Users deposit tokens into pools, and those funds are used to:

Enable token swapsFacilitate borrowingProvide market depthPrices are determined algorithmically, based on supply and demand within the pool.

3. Users interact via wallets

In DeFi, your wallet is your account.

You connect a wallet (like MetaMask or hardware wallets) to a dApp and:

Approve transactionsSign messagesRetain full control of your fundsThere are no usernames, passwords, or custodians holding your assets.

What can you do in DeFi?DeFi covers a wide range of financial use cases.

Token swaps

Users can exchange one token for another directly on-chain using decentralized exchanges (DEXs).

Lending and borrowing

You can:

Deposit assets to earn interestBorrow against collateral without selling your holdingsAll terms are enforced by smart contracts.

Yield generation

Users can earn rewards by:

Providing liquidityStaking tokensParticipating in incentive programsPayments and transfers

DeFi enables fast, global transfers without relying on banks or payment processors.

Why DeFi existsDeFi emerged to solve limitations in traditional finance:

Restricted access: Many financial services are not globally availableLack of transparency: Users cannot verify how systems operateIntermediary risk: Funds depend on third-party custodyDeFi addresses these by offering:

Open accessOn-chain transparencySelf-custodyRisks and limitations of DeFiDeFi is powerful, but not risk-free.

Smart contract risk

Bugs or vulnerabilities in code can lead to loss of funds.

Market volatility

Crypto markets can move quickly, affecting collateral and swap outcomes.

Liquidity risk

Low liquidity can lead to poor execution or higher price impact.

User responsibility

There is no customer support reversing transactions. Users must manage their own security and decisions.

How to start using DeFiGetting started is straightforward:

Create a crypto walletFund it with assetsConnect to a DeFi applicationStart with simple actions like swapsAlways verify:

The application you are usingThe token addressesThe transaction details before signingFrequently Asked Questions (FAQ)What is DeFi in simple terms?

DeFi is a system of financial services built on blockchain networks that operate without banks or centralized intermediaries.

Is DeFi safe?

It can be, but it depends on the protocol, smart contract security, and user behavior. Risks include bugs, volatility, and user error.

Do I need to create an account to use DeFi?

No. You only need a crypto wallet. There are no traditional accounts or intermediaries.

How does DeFi make money?

Users can earn through trading, lending, staking, or providing liquidity. Protocols may generate fees from activity.

What is the difference between DeFi and CeFi?

DeFi is non-custodial and runs on smart contracts. CeFi (centralized finance) relies on institutions that control user funds.

Can I use DeFi without technical knowledge?

Yes. Many interfaces are designed for everyday users, though understanding basic concepts helps reduce risk.

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Liquidity shapes the price, speed and execution quality of crypto swaps. Learn how it works so you can trade with fewer surprises and better execution.

If you’ve ever tried to swap a token and received a worse rate than expected, liquidity was probably part of the reason. In DeFi, liquidity determines how easily an asset can be bought or sold without moving its price too much.

That matters because liquidity directly affects slippage, price impact and execution quality. Once you understand how it works, you can make smarter trading decisions and avoid unnecessary costs.

Liquidity in DeFi refers to how easily a token can be bought or sold without causing a large change in its price.

High liquidity means:

Trades execute smoothlyPrices remain stableLarge orders can be processed efficientlyThese are general tendencies - market conditions can change rapidly even in high-liquidity environments.

Low liquidity means:

Prices can move sharplyTrades may execute at worse ratesTransactions can failLiquidity is not a fee or a setting - it is a property of the market itself.

How liquidity works in DeFiUnlike traditional markets, many DeFi platforms rely on liquidity pools instead of order books.

What is a liquidity pool?

A liquidity pool is a smart contract that holds tokens deposited by users (liquidity providers).

These tokens are used to:

Enable swapsProvide market depthFacilitate trading without intermediariesPrices are determined algorithmically based on the balance of assets in the pool.

Who provides liquidity?Liquidity in DeFi is supplied by users called liquidity providers (LPs).

They deposit token pairs into pools and, in return:

Earn a share of trading feesHelp maintain market functionalityHowever, providing liquidity involves risks, including impermanent loss - a situation where the value of deposited assets may be lower upon withdrawal compared to simply holding them. Users should research LP mechanics thoroughly before depositing funds.

Why liquidity matters for your swapsLiquidity directly affects how your trade executes.

1. Better prices

Deep liquidity means your trade can be executed close to the market price.

2. Lower slippage

When liquidity is high, price movement during execution is minimal.

3. Reduced price impact

Large trades in shallow markets can move prices significantly. Deep liquidity reduces this effect.

4. Higher success rate

Low liquidity can cause transactions to fail if there is not enough depth to complete the trade.

What happens when liquidity is too low?Low liquidity introduces several risks:

Higher slippage: worse execution than expectedPrice volatility: even small trades can move the marketFailed transactions: insufficient liquidity to complete swapsIncreased MEV exposure: thin markets are easier to exploitThis is why trading on illiquid pairs often leads to poor outcomes.

Liquidity vs. volumeThese terms are related but not the same.

Liquidity: how much capital is available for tradingVolume: how much trading activity occursA market can have:

High volume but low liquidity (volatile conditions)High liquidity but low volume (stable but inactive market)Understanding the difference helps explain why some markets behave unpredictably.

How to identify good liquidityBefore executing a trade, check:

Size of the liquidity poolDifference between expected and received amountPrice impact indicatorsOverall market activityIf the numbers look off, reconsider the trade instead of forcing it through.

How to trade more efficientlyYou cannot control liquidity, but you can adapt to it.

Trade more liquid pairsAvoid large trades in shallow marketsMonitor price impact before confirmingUse aggregation tools to access deeper liquidityThese habits help reduce unnecessary losses.

Practical takeawayLiquidity is one of the most important factors in DeFi trading.

If liquidity is high, trades are generally smoother and more efficient. 

If liquidity is low, execution becomes riskier and more costly.

The practical habit is simple: check liquidity before trading, avoid illiquid markets, and use tools that aggregate liquidity to improve execution.

Frequently Asked Questions (FAQ)What is liquidity in DeFi?

Liquidity is the availability of assets in a market that allows trades to be executed without significantly affecting price.

Why is liquidity important?

It affects price stability, slippage, and whether your transaction can execute successfully.

What are liquidity pools?

Smart contracts that hold tokens and enable trading without intermediaries.

Who provides liquidity?

Liquidity providers - users who deposit assets into pools and earn fees.

What happens if liquidity is low?

You may experience higher slippage, worse prices, or failed transactions.

Can I improve liquidity?

You cannot directly control it, but you can trade in markets with higher liquidity.

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Track lending, LP, staking, restaking yield and prediction-market positions across protocols and chains - directly in 1inch Wallet.

You made a prediction on Polymarket. You’re staking ETH. You’re lending USDT on Aave. Maybe you also have an LP position on another chain.

Tracking all of it should be simple. Instead, it often means jumping between dApps, checking different dashboards and trying to piece together your real DeFi exposure.

1inch Wallet solves this with DeFi Positions - a new feature that brings your protocol positions, performance and risk signals into one place.

Your DeFi portfolio, in one viewDeFi Positions make 1inch Wallet a single home for your active DeFi life.

The feature shows your positions across 1,200+ supported DeFi protocols and 13 chains, including:

lendingliquidity poolsstakingrestakingyield positionstrading derivativesprediction markets.Those last two categories are especially important these days. Derivatives and prediction markets are becoming two of the most watched DeFi use cases, as more users seek to use leverage in trading derivatives, and look for ways to express views on real-world events, crypto trends and market outcomes. 

Now, 1inch Wallet helps bring those positions into the same portfolio view as the rest of your DeFi activity.

See value, PnL and rewardsKnowing that you have a DeFi position is not enough. You need to know how it is performing.

With DeFi Positions, you can track key position data directly in 1inch Wallet, including current value, PnL and rewards. This gives you a clearer view of what is working and what may be dragging performance.

Instead of opening multiple dApps to check lending, LP, staking or prediction-market exposure, you can start from one wallet view.

Risk signals where you need themDeFi positions are not static. LP ranges can move out of range. Lending health can deteriorate. Rewards can change. Market exposure can shift.

1inch Wallet now surfaces important position risk signals upfront, including LP out-of-range and lending health indicators. This gives you a faster way to spot what may need attention.

The goal is simple: your wallet should not only show balances. It should help you understand and proactively manage your active DeFi positions.

Your real wallet balanceIdle tokens tell only part of the story.

With DeFi Positions, protocol positions contribute to your total wallet balance and PnL. That means 1inch Wallet can show a more complete view of your net worth across tokens and active DeFi positions.

For active DeFi users, this is a major step toward a clearer portfolio overview.

Powered by 1inch Portfolio APIDeFi Positions are powered by the 1inch Portfolio API, the same backend that powers 1inch Portfolio.

That gives 1inch Wallet broad coverage across protocols, chains and position types, while keeping the experience simple for everyday use.

The first version of DeFi Positions includes the DeFi widget on the main screen and a list of positions in the DeFi tab. More detailed position views will be added in future versions.

Meanwhile, the 1inch Portfolio API is available on 1inch Business alongside other innovative DeFi solutions.

Start tracking your DeFi positionsDeFi is expanding beyond simple swaps and token balances. Lending, LPs, staking, restaking, yield strategies, derivatives trading and prediction markets all create positions that need to be tracked.

With DeFi Positions, 1inch Wallet gives you one place to see them.

Open 1inch Wallet and explore your DeFi Positions today.

RWA trading becomes easier to access, enabling more users to explore tokenized equities, collateral markets and new liquidity venues without getting lost in technical complexity.

You’ve heard about tokenized real-world assets, or RWAs. But maybe they still sound too technical, too institutional or simply too hard to use.

That is changing.

The RWA market is still growing, but the focus is shifting. It is no longer just about bringing assets on-chain. It is also about making them usable: easier to trade, easier to move and easier to access through wallets and DeFi infrastructure.

In this article, we look at the state of RWA trading in 2026, why this asset class is gaining attention and why it may be worth exploring sooner rather than later.

RWA trading is becoming more practicalThe market is no longer built only around one asset type.

Aave Horizon is pushing the institutional lending angle, connecting DeFi credit infrastructure with tokenized real-world collateral. Ondo has become the largest tokenized securities platform in the space, expanding from Treasuries to hundreds of stocks and ETFs with leverage trading via Ondo Perps. xStocks has similarly brought tokenized equities and ETFs on-chain, also with assets backed 1:1 by underlying securities and live across multiple chains.

NAV-style products point to another important direction: tokenized fund infrastructure. For funds and structured products, net asset value data is not a side detail. It is what lets markets price, redeem and manage exposure with more transparency.

Together, these products show where RWA trading is heading: from isolated issuance to active infrastructure.

Tokenized equities are the clearest user storyTokenized equities are quite easy to understand. People already know Apple, Tesla, Nvidia and major ETFs. What is new is that these assets can now move on-chain.

Kraken launched xStocks for eligible non-US clients in June 2025, starting with 60 tokenized US stocks and ETFs powered by Backed. Ondo launched Ondo Global Markets in September 2025, with a breakthrough liquidity model that taps into the liquidity of traditional exchanges. It quickly became the largest platform and was the first to surpass $1 bln in total value locked. Ondo tokenized stocks and xStocks can be traded 24 hours a day, five days a week and withdrawn to self-custodial wallets.

xStocks now presents itself as infrastructure for exchanges, DEXs, wallets, aggregators and liquidity venues, with more than 100 stocks and ETFs and support for tokenized equity routing across platforms. Ondo’s 260+ tokenized stocks and ETFs are increasingly being deployed as high-quality collateral across the DeFi landscape. 

This is important for DeFi. Once tokenized equities are transferable on-chain, they can become part of a wider trading and collateral ecosystem.

Liquidity is still the main challengeTokenization alone does not create a market.

A 2025 academic paper on RWA liquidity warned that many RWA tokens still suffer from low trading volume, long holding periods, limited active users and weak secondary markets. The paper describes liquidity as one of the core bottlenecks for the sector.

This is exactly why routing matters.

RWA liquidity will not appear in one place. It will be spread across issuers, chains, venues, pools and market makers. For traders, that creates price gaps and execution risk. For apps, it creates integration work.

Aggregated routing can help solve this problem by connecting fragmented liquidity into a single execution layer.

1inch and the RWA execution layer1inch has already integrated Ondo and xStocks, reflecting a broader shift in the market: RWA trading needs more than issuance. It needs reliable access and efficient execution.

For tokenized equities and other RWAs, the role of aggregation is straightforward:

find liquidity across venues;reduce manual routing for traders;help apps support more assets without rebuilding every integration;improve execution where liquidity is fragmented.That is the same problem 1inch was built to solve in DeFi.

As RWAs move on-chain, the execution layer becomes more important. Traders do not want to think about which venue has the best route. They want the asset, the price and the transaction to work.

The 2026 takeawayRWA trading in 2026 is no longer just about putting traditional assets on-chain.

The real test is whether those assets can become usable in DeFi.

Aave Horizon, Ondo, xStocks and NAV-style products all point to the same direction: more real-world value is entering blockchain rails. But the next stage depends on liquidity, routing, compliance-aware access and better UX.

Tokenized assets need markets. Markets need execution. And execution needs infrastructure.

Disclaimer 1:

This content is for general information purposes only and does not constitute financial, investment, tax, or legal advice and is not a recommendation to buy or sell any particular digital asset or to employ any specific investment strategy.

Disclaimer 2:

Not available in the US, EU, UK and other restricted jurisdictions.

Explore 1inch to access efficient DeFi routing across the on-chain economy.

SpaceX is one of the world’s most watched private companies. Its tokenized versions issued by Ondo and xStocks, will be available through 1inch on June 12.

This Friday 12 June will see what should be one of the biggest IPOs in history: Elon Musk’s SpaceX. 

And thanks to tokenized RWAs, millions of people around the world will be able to participate - even if they don’t have direct access to US financial markets.

SPCXx, issued by xStocks, and SPCXon, issued by Ondo Global Markets, will be available on 1inch, giving eligible users a new way to access this market directly from DeFi.

What are SpaceX RWAs?

RWAs, or real-world assets, are tokens that represent exposure to assets off-chain (outside crypto). These can include equities, bonds, funds, commodities or private-market assets.

SPCXx and SPCXon are not the same thing as directly holding SpaceX shares. The exact structure depends on the issuer. In some cases, a token may represent indirect exposure through a regulated structure, fund, note or other wrapper.

That distinction matters. Before trading any RWA, you should understand what the token represents, who issued it, what rights it gives you and whether you are eligible to hold it.

Why SpaceX RWAs matterAccess to the US stock market can be complex and expensive for ordinary people outside the USA.

Tokenized RWAs can help bridge that gap by bringing exposure on-chain. Instead of going through traditional private-market channels, eligible users can interact with tokenized assets through crypto wallets and DeFi infrastructure.

This does not remove risk. Newly listed equity can be volatile, thinly traded at first and subject to sharp price swings as the market finds its level. Tokenized exposure does not remove those risks, but it can give eligible users a new on-chain way to access the asset once trading goes live.

Trading SpaceX RWAs on 1inchSPCXx and SPCXon will be made available by issuers and consecutively surfaced by 1inch on the same day as the IPO, June 12, and eligible users will be able to trade it.

The process will be similar to other token swaps:

Open 1inch.Connect your wallet.Select the token you want to swap from.Select SPCXx or SPCXon.Review the quote, network fees and price impact.Confirm the transaction in your wallet.1inch helps users access liquidity across DeFi and find efficient swap routes. For RWAs, this is especially important because liquidity can be fragmented across issuers, chains and venues.

What to check before tradingBefore trading SPCXon or SPCXx, take a moment to review the basics.

First, check the issuer. SpaceX RWAs issued by Ondo and xStocks may have different legal structures, supported jurisdictions and user eligibility requirements.

Second, check liquidity. If liquidity is thin, the final execution price may differ from what you expect.

Third, check the token contract. Make sure you are interacting with the correct asset, not an imitation.

Finally, understand the risk. A tokenized asset may track or represent exposure to a real-world company, but it is still an on-chain instrument with its own structure, terms and restrictions.

How 1inch supports effective RWA tradingRWA markets need more than issuance. They also need execution.

If tokenized assets are hard to find, hard to route or hard to trade efficiently, they remain difficult to use. This is where DeFi infrastructure matters.

1inch helps connect users to available liquidity and supports efficient execution across DeFi. As more RWAs move on-chain, trading infrastructure becomes a key part of the user experience.

For SPCXon and SPCXx, this means eligible users can access tokenized exposure through a familiar DeFi flow instead of navigating fragmented venues manually.

A new step for on-chain marketsRWAs are expanding what can be traded on-chain.

The first wave of DeFi focused on crypto-native assets: tokens, stablecoins, lending markets and liquidity pools. The next wave brings more real-world exposure into the same environment.

SpaceX RWAs are part of that shift. They show how private-market exposure, issuer infrastructure and DeFi execution can start to meet on-chain.

Disclaimer 1:

This content is for general information purposes only and does not constitute financial, investment, tax, or legal advice and is not a recommendation to buy or sell any particular digital asset or to employ any specific investment strategy.

Disclaimer 2:

Not available in the US, EU, UK and other restricted jurisdictions.

Open 1inch and explore available DeFi opportunities!

In this article you will learn how decentralized exchanges (DEXes) work, where they beat centralized exchanges (CEXes), and what can cost you money before you swap.

Since 2019, 1inch has routed swaps across roughly 100 DEXes on 13 chains. That experience shows one thing clearly: using a DEX is not just about “decentralization.” It is about execution. Price, liquidity, slippage, MEV, gas and routing all shape the final result.

A decentralized exchange, or DEX, is a non-custodial crypto trading venue where swaps are executed by smart contracts on-chain between crypto traders, not by a centralized company holding your funds such as Binance or Coinbase.

On the contrary, in a centralized exchange (CEX), you deposit assets into an account and trade inside that platform’s internal system. On a DEX, you connect a wallet, choose a trade and sign a transaction. The trade settles on-chain.

Unlike a centralized exchange, a DEX is entirely non-custodial. This changes how your trades settle:

Reduced Custody Risk: The exchange engine never holds or locks your funds.Wallet-to-Wallet Trading: Your assets stay in your personal wallet until you sign to approve a transaction.Automated Execution: An immutable smart contract handles the swap instantly based on predefined protocol rules.On a centralized exchange, you rely on the platform to custody assets, match orders, maintain balances and process withdrawals. On a DEX, the blockchain records the trade and the smart contract handles execution.

A DEX is also not simply “an app that lets you trade crypto.” The interface is only the front end. The important part is the smart contract behind it.

Three quick clarifications help avoid confusion:

A DEX is not an app you give your private keys to.A DEX is not the same as a centralized exchange with crypto branding.A DEX does not need a centralized order-matching server.Is Coinbase a decentralized exchange? No. Coinbase is a centralized exchange. Coinbase Wallet is a separate self-custody wallet, but Coinbase itself is not a DEX.

Is XRP a decentralized exchange? No. XRP is a crypto asset. The XRP Ledger has decentralized exchange functionality, but XRP itself is not a DEX.

For a trader moving off a CEX, the main shift is control. You gain more direct access to on-chain markets. You also take on more responsibility for execution, security and transaction settings.

How DEXes actually workA DEX uses smart contracts to execute trades.

A smart contract is code deployed on a blockchain. It defines how assets can move, who can interact with the protocol and what conditions must be met before a trade is completed.

When you swap on a DEX, the process usually looks like this:

You connect a self-custody wallet.You choose the token you want to sell.You choose the token you want to buy.You review the quote, fees and slippage settings.You sign the transaction.The smart contract executes the trade on-chain.That removes the CEX account layer. There is no exchange balance maintained in a private database. There is no withdrawal request. There is no centralized matching engine controlling settlement.

But DEXes still need liquidity.

That liquidity usually comes from one of two models: AMMs or orderbooks.

Automated Market Makers (AMM) DEXes

Most major spot DEXes use automated market makers, or AMMs.

An AMM does not rely on buyers and sellers placing matching orders. Instead, it uses liquidity pools. A liquidity pool is a smart contract that holds two or more assets and lets traders swap against those reserves.

Liquidity providers, or LPs, deposit assets into the pool. In return, they earn a share of trading fees. Academic work on AMMs describes this model as decentralized trading through liquidity pools where LPs supply assets and earn fees from trades.

The simplest AMM design uses a constant product formula:

Here is the basic idea:

ETH reserve * USDC reserve = constant

Before trade:

100 ETH * 300,000 USDC = 30,000,000

If you buy ETH from the pool:

ETH reserve falls

USDC reserve rises

The price of ETH goes up inside that pool

That is why large trades move the price. The pool must keep the equation balanced. The more you take from one side, the more expensive each next unit becomes.

Orderbook DEXes

Some DEXes use orderbooks.

An orderbook has bids and asks. Buyers place bids. Sellers place asks. The trade happens when prices match.

This model is closer to what you see on a CEX. It can work well for markets with deep liquidity and active market makers, especially derivatives and perpetuals.

The tradeoff is complexity. A fully on-chain orderbook can be expensive and slow on some networks because every order update may require blockchain interaction. Many orderbook DEXes therefore use hybrid designs, with some parts off-chain and settlement on-chain.

Liquidity pools in 90 seconds

Liquidity is the reason a DEX can execute your swap.

If you want to swap ETH for USDC, the protocol needs access to ETH and USDC liquidity. In an AMM, that liquidity sits in pools. In an orderbook, liquidity sits in open bids and asks.

For LPs, the incentive is fees. Traders pay swap fees. LPs receive a share of those fees based on their pool contribution.

For traders, the benefit is access. You do not need a centralized market maker to quote you a price. The protocol can quote a price based on available liquidity.

But liquidity is fragmented. One pool may offer a better rate than another. One chain may have better depth for a pair than another. One DEX may be cheaper for a small swap, while another may be better for a larger order.

How Liquidity Pools Work

A decentralized exchange can only execute a trade if it has an immediate supply of tokens available. For example, to swap ETH for USDC, the underlying protocol needs direct access to both ETH and USDC liquidity. 

In an Automated Market Maker (AMM), these tokens are held inside smart contracts called liquidity pools. On an order book DEX, that supply exists instead as open buy and sell offers.

Liquidity providers (LP) fund these digital reserves by depositing their own crypto assets into the smart contract. In return for keeping the market funded, these providers earn a direct share of the trading fees generated by the platform. For traders, liquidity pools provide instant access to swaps without relying on a centralized broker; the protocol calculates the exchange rate mathematically based on the remaining token balance.

Because anyone can deploy a new pool across different blockchains, crypto liquidity is heavily scattered throughout the market. A single DEX might offer an excellent exchange rate for a small swap, while a completely different protocol has the deep reserves necessary to handle a much larger order safely. DEX aggregators eliminate the friction of scattered liquidity by automatically scanning multiple decentralized exchanges at once to route a trade through the most efficient swap.

Types of DEXesDEXes are not all the same. Different designs solve different execution problems.

AMM-based DEXes

AMM DEXes use liquidity pools and pricing curves.

Examples include Curve, PancakeSwap, SushiSwap and Uniswap.

Constant-product AMMs are the classic model. They work well for general token pairs. The formula keeps pool reserves balanced, but large trades can create price impact.

Concentrated-liquidity AMMs let LPs provide liquidity inside chosen price ranges. Uniswap v3 popularized this design, and research on Uniswap v3 describes how LPs can allocate liquidity to specific price intervals instead of the full possible price range.

Stableswap curves are designed for assets that should trade near the same value, such as stablecoin pairs. Curve is the best-known example of this category.

Orderbook DEXes

Orderbook DEXes use bids and asks.

Examples include dYdX and OpenBook.

Orderbooks can work better for advanced trading and derivatives markets. They can also support limit orders in a way that feels familiar to CEX traders.

The tradeoff is that orderbooks require active liquidity and fast updates. That can be harder to run fully on-chain.

Hybrid DEX models

Hybrid DEX designs combine features from multiple models.

Curve’s StableSwap design adjusts the AMM curve for similar assets. Uniswap v3 concentrates liquidity into price ranges. Other protocols combine off-chain order management with on-chain settlement.

The goal is usually the same: better capital efficiency and better execution.

DEX aggregators

A DEX aggregator searches across multiple DEXes to find a better route for your swap.

Examples include 1inch, CoW Swap, Matcha, Odos and ParaSwap.

Aggregators exist because liquidity is fragmented. No single DEX has the best price for every token, amount and chain.

A $100 swap and a $100,000 swap can need very different routes. A small trade may go through one pool. A larger trade may need to be split across several DEXes to reduce price impact.

1inch was built to solve this problem. The goal is not to make you manually check every venue. The goal is to make the route compete for you.

Cross-chain swap protocols

Cross-chain swap protocols move value between chains.

This is a separate but related category. A cross-chain swap can involve liquidity, messaging, bridges, solvers or intent-based execution.

For traders, the goal is simple: move from one asset on one chain to another asset on another chain without doing several manual steps.

Power trader concepts: the stuff that costs you moneyA DEX trade can look simple in the interface. The outcome depends on details that may not be obvious at first glance.

These are the concepts that matter most.

What is slippage?

Slippage is the difference between the expected price of a trade and the final executed price.

On a DEX, slippage happens because the market can move before your transaction confirms. It can also happen because your trade changes the pool price while it executes.

Slippage tolerance tells the protocol how much price movement you are willing to accept.

Set it too low, and your transaction may fail. Set it too high, and you may leave yourself exposed to worse execution or sandwich attacks.

As a rough practical range:

Blue-chip pairs often work around 0.1% to 0.5%.Less liquid tokens may need wider tolerance.Very low-cap tokens can require 5% to 10% or more.That does not mean high tolerance is good. It means thin liquidity is expensive.

Price impact vs slippage

Price impact is caused by your own trade moving the pool price.

Slippage is the difference between the quote and final execution.

They are related, but they are not the same.

A large trade can have high price impact even if it executes immediately. A small trade can suffer slippage if the market moves before confirmation.

MEV and sandwich attacks

MEV, or maximal extractable value, is value that can be captured by ordering, inserting or reordering blockchain transactions.

A sandwich attack is one common MEV strategy.

It usually works like this:

A bot sees your pending swap.The bot buys before you.Your trade executes at a worse price.The bot sells after you.The bot profits from your price movement.

Research on sandwich attacks shows the core tradeoff clearly: too little slippage tolerance can cause failed transactions, while too much tolerance can give predatory bots more room to extract value.

Some aggregators and intent-based systems try to reduce this risk through private routing, solver competition or execution designs that avoid exposing the full trade to the public mempool.

1inch intent-based swaps are designed around this problem. You sign an intent, and professional resolvers compete to execute it. That can help reduce MEV exposure and remove the need for you to manage every execution detail manually.

Gas fees

Gas is the cost of using a blockchain.

On a DEX, gas matters because every major action happens on-chain. Approvals, swaps, liquidity changes and some failed transactions can all cost gas.

Gas can change quickly. A trade that looks attractive at one moment can become less attractive if network fees spike.

Failed transactions

Failed transactions are part of DEX trading.

Common causes include:

Slippage tolerance was too low.Gas settings were too low.The pool price changed before confirmation.A token has transfer restrictions.The route became invalid.MEV or reordering affected execution.A failed transaction does not usually mean your entire trade amount is lost. But the gas spent on the failed transaction is usually not returned.

Before retrying, check what failed. Raising slippage blindly can make the next trade worse.

How to use a DEXThe easiest way to understand DEX trading is to walk through the flow.

Here is a practical example using the 1inch app as the interface.

1. Get a self-custody wallet

You need a wallet that lets you connect to DeFi apps.

Examples include browser wallets, mobile wallets and hardware wallets. 1inch Wallet is one option for mobile self-custody.

Your wallet holds your assets and signs transactions. The DEX does not take custody of your funds.

2. Fund your wallet

You need the asset you want to trade.

You also need the chain’s gas token. On Ethereum, that is ETH. On BNB Chain, that is BNB. On Polygon, that is POL.

You can fund your wallet by:

withdrawing from a CEX,using an onramp,bridging from another chain,receiving assets from another wallet.3. Connect to a DEX or aggregator

Go to the trading interface and connect your wallet.

An aggregator can search across many DEXes at once. That saves you from checking individual pools manually.

4. Set slippage and review the route

Choose the token you want to sell and the token you want to buy.

Then review:

expected receive amount,route,price impact,network fee,slippage tolerance,token addresses.Do not skip this step. Execution quality often lives in the details.

5. Sign and confirm

If it is your first time trading a token, you may need to approve it.

After approval, sign the swap.

Your wallet will show transaction details. Review them before confirming.

For most traders, an aggregator helps with steps 3 and 4 by checking many DEXes and routes at once. That becomes more important as trade size increases.

Risks and limitationsDEXes reduce some risks. But they also introduce others.

A good trader understands both.

Smart contract risk

DEXes run on smart contracts. Smart contracts can have bugs.

Audits reduce risk, but they do not make risk disappear. Even audited protocols have been exploited.

1inch has a long audit history and security-first culture, but no DeFi interface should be treated as risk-free.

Self-custody risk

Self-custody gives you control. It also gives you responsibility.

If you lose your seed phrase, you may lose access to your funds. If you sign a malicious transaction, there may be no support team that can reverse it.

Hardware wallets can reduce key-management risk. Good wallet hygiene matters.

Fake tokens and scams

DEXes are permissionless. That is a strength and a risk.

Anyone can deploy a token. Anyone can create a pool. A token name or ticker can be copied.

Before trading, verify the contract address from a trusted source such as the project’s official site, CoinGecko or CoinMarketCap. Do not rely on search results inside a DEX interface alone.

Lower fiat liquidity

A DEX does not usually let you cash out directly to a bank account.

You can swap into stablecoins on-chain. To move into fiat, you normally need a CEX, card provider, bank-connected onramp or offramp.

Regulatory and tax complexity

DEX trades can still be taxable.

A DEX may not send you the same type of tax form as a CEX. That does not remove your obligation to track trades and report taxable events where required. In the US, tax reporting rules for digital assets continue to evolve, and reporting obligations can differ between custodial and decentralized platforms.

Keep your own records.

DEX crypto FAQIs Coinbase a decentralized exchange?

No. Coinbase is a centralized exchange.

Coinbase Wallet is a separate self-custody wallet. A wallet can connect to DeFi, but that does not make the Coinbase exchange a DEX.

What is the best decentralized crypto exchange?

The right DEX depends on what you are trading.

An AMM may be better for a simple token swap. An orderbook DEX may be better for derivatives. An aggregator may be better when liquidity is split across many venues.

Do decentralized exchanges report to the IRS?

A DEX may not report in the same way as a centralized broker.

That does not mean DEX trades are tax-free. You are still responsible for reporting taxable transactions where required.

Are DEXes safe?

DEXes reduce custodial risk because you trade from your own wallet.

DEXes still carry smart contract risk, token risk, phishing risk and execution risk.

Can I cash out from a DEX?

Usually not directly to fiat.

A common path is to swap into a stablecoin, then use a CEX or offramp provider to move into a bank account.

What is the difference between a DEX and a DEX aggregator?

A DEX is a trading venue.

A DEX aggregator searches across multiple venues and routes your trade to improve execution.

Do DEXes charge fees?

Yes.

You may pay:

swap fees to liquidity providers,gas fees to the blockchain,price impact from the trade itself,execution costs embedded in some routes.Can I use a DEX with a hardware wallet?

Yes.

A hardware wallet can connect through supported wallet software and sign DEX transactions. This can help protect private keys, but you still need to review every transaction before signing.

The next step after understanding DEXesA DEX gives you direct access to on-chain liquidity.

That is powerful. It also means execution matters more. A trade can be affected by fragmented liquidity, slippage, price impact, gas and MEV.

This is why aggregators became a core part of DeFi trading. Once liquidity is spread across many venues, the question is no longer only “which DEX should I use?”

The better question is:

Where is the best route for this trade right now?

1inch helps answer that question by giving you access to major DEX liquidity from one interface.

Trade across major DEXes from one place on 1inch.com.

Tokenized equities are moving on-chain, but liquidity is still fragmented. For wallets, apps and trading platforms, aggregated routing can offer a more flexible path than direct DEX integration alone.

What if you want exposure to US stocks, but your money is already on-chain?

That question is becoming harder to ignore. Ondo has expanded tokenized access to US equities and ETFs for non-US investors through Ondo Global Markets, while Robinhood launched tokenized US stocks and ETFs for EU users in 2025.

The idea is simple: give investors blockchain-based exposure to traditional assets. The execution problem is more complex.

Where should a swap go? Which pool has enough liquidity? Which route gives the best result after price impact, gas and fees? For tokenized equities, these questions matter from day one.

Direct DEX integration gives controlDirect DEX integration means an app connects to one exchange or liquidity venue.

That can work well when liquidity is deep and predictable. It gives teams a clear integration path, direct control over UX and fewer moving parts.

But tokenized equities are still an emerging market. Liquidity may be spread across chains, issuers, pools and trading venues. A single DEX can only offer the liquidity available inside that venue.

For a user, that can mean worse execution. For an app, it can mean more maintenance as new tokenized equity markets appear.

Aggregated routing solves a different problemAggregated routing does not ask one venue for a price. It scans multiple liquidity sources and finds a better route for the swap.

That matters when markets are fragmented. Instead of forcing execution through one pool, an aggregator can split or route trades across available sources. The goal is simple: improve the final amount the user receives after all execution costs.

This is the core role of DEX aggregation. 1inch’s aggregation model is designed to search across liquidity sources and optimize routes, with Pathfinder able to split swaps across venues and factor gas costs into execution.

For tokenized equities, this model is especially relevant. Liquidity will not appear evenly everywhere. Some assets may be deep on one chain, thin on another and unavailable elsewhere. Aggregated routing helps apps adapt as the market changes.

Why tokenized equities need better executionTokenized equities are not just another token category. They connect DeFi rails with regulated financial assets, which means teams must consider compliance, market structure and user expectations.

Users will compare tokenized equities with traditional brokerage experiences. They will expect clear pricing, reliable execution and low friction.

That creates a practical challenge for DeFi apps:

direct DEX access can be simple, but narrow;aggregated routing is broader, but requires stronger infrastructure;tokenized equity liquidity may shift quickly as new issuers and venues enter the market.Academic research on DEX execution has also found that solver-based and auction-based systems can improve execution outcomes in certain trade size ranges, although results depend on liquidity profile and market structure.

The better path for appsDirect DEX integration is useful when an app needs a specific venue. Aggregated routing is better when an app needs execution quality across a changing market.

For tokenized equities, the second case is likely to become more important.

As more real-world assets move on-chain, liquidity will become both larger and more fragmented. Apps that rely on one venue may struggle to keep up. Apps that use aggregation can offer users broader access without rebuilding integrations for every new market.

That is where 1inch infrastructure fits. 1inch helps apps access deep DeFi liquidity through optimized routing, while keeping the user experience simple.

Tokenized equities may bring traditional assets on-chain. Aggregated routing can help make them usable.

Disclaimer 1:

This content is for general information purposes only and does not constitute financial, investment, tax, or legal advice and is not a recommendation to buy or sell any particular digital asset or to employ any specific investment strategy.

Disclaimer 2:

Not available in the US, EU, UK and other restricted jurisdictions.

Explore 1inch Business to build with advanced DeFi routing infrastructure.

Fintech Insiders Comment on Bank of England Stablecoin Rules Proposal Top Story

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Cover image via depositphotos.com Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

Users are being urged to withdraw their assets right away due to a serious security incident that has occurred within the Gnosis ecosystem.

Concerns regarding the security of user funds were raised when blockchain security company PeckShieldAlert discovered an active exploit impacting Gnosis Pay. Martin Köppelmann, a co-founder of Gnosis, publicly urged users to remove all funds held through Gnosis Pay, amplifying the warning.

The problem, according to Köppelmann, is caused by a flaw in the platform's delay module, which is a feature intended to give transactions and account operations an extra degree of security.

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"Unfortunately, I must advise that all funds (EURe and GNO) be withdrawn. There is a bug in the delay module that could affect you"

Both GNO, the native token of the Gnosis ecosystem, and EURe, a stablecoin backed by the euro, appear to be affected by the vulnerability.

Project representatives have stressed that users should take immediate action rather than waiting for more technical details, even though the full scope of the exploit has not yet been revealed. According to PeckShieldAlert, the vulnerability may already be being exploited by attackers.

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Quick action is frequently essential to preventing losses in incidents involving live exploits, especially when attackers can take advantage of vulnerabilities before patches or mitigation measures are fully implemented.

Gnosis Pay, which connects blockchain-based assets with conventional payment services, has become popular among consumers looking to use payment cards and associated financial tools to spend cryptocurrency assets. Therefore, a large number of users on the platform may be impacted by the latest security flaw.

As of this writing, no formal estimate of the impacted funds or accounts has been made public. As the investigation and mitigation efforts continue, the Gnosis team is anticipated to provide more updates.

PANews reported on June 1st that, according to The Block, Gnosis co-founder and CEO Martin Koppelmann confirmed that the Zodiac delay module associated with Gnosis Pay is under attack. Attackers can initiate transactions from the Safe wallet, which integrates the module. Gnosis has requested cross-chain bridge validators to suspend operations to control the risk. Koppelmann stated that Gnosis will bear all user losses and has removed its previous announcement requesting users to urgently withdraw EURE and GNO, stating that most users are unable to withdraw their funds themselves, and the team is working hard to control most of the losses and ensure that all users receive full compensation. Gnosis emphasized that the vulnerability is located within the Gnosis Pay system, and the Safe core contract is unaffected.

Key Takeaways Table of Contents

Key TakeawaysCritical Vulnerability Discovered in Zodiac Delay ModuleEmergency Response Protocols ActivatedReimbursement Promise Highlights Smart Contract Payment Challenges Gnosis announces complete reimbursement for all victims of Gnosis Pay security incident Critical vulnerability in Zodiac Delay Module enables unauthorized transaction execution Emergency containment measures deployed across compromised Safe wallet infrastructure EURe and GNO token holders urged to withdraw funds immediately Security incident highlights ongoing vulnerabilities in blockchain payment solutions A critical security vulnerability forced Gnosis into emergency response mode after malicious actors exploited a weakness in the Zodiac Delay Module. The attack compromised Safe-based payment infrastructure and prompted immediate containment protocols. The company has committed to providing complete restitution to all affected users.

Critical Vulnerability Discovered in Zodiac Delay Module The security compromise originated from a previously unknown vulnerability within the Zodiac Delay Module integrated into Gnosis Pay infrastructure. This component typically enforces time-based restrictions on outbound transactions to enhance security. However, attackers discovered a method to circumvent these protections and execute unauthorized transfers from vulnerable Safe wallets.

The Gnosis Pay platform bridges cryptocurrency holdings with traditional payment networks by utilizing Safe smart contract wallets. These accounts connect digital assets to physical payment cards for everyday transactions. The modular architecture that enables this functionality inadvertently created an attack vector when one component contained exploitable code.

Martin Köppelmann, co-founder of Gnosis, publicly acknowledged the delay module vulnerability. He confirmed that attackers gained the ability to trigger transactions from compromised Safe accounts. The development team immediately classified the situation as a critical security emergency requiring immediate user action.

Emergency Response Protocols Activated Gnosis implemented multiple defensive strategies to minimize ongoing damage as the exploitation continued. The organization contacted bridge validators with requests to temporarily suspend operations, effectively limiting potential exit channels for stolen assets. This infrastructure-level intervention aimed to restrict attacker mobility while security teams analyzed the breach.

Users received urgent notifications to immediately withdraw EURe stablecoins and GNO tokens from potentially vulnerable accounts. Köppelmann acknowledged that manual withdrawal might not be feasible for all users. The response strategy therefore prioritized system-wide protective measures to safeguard remaining funds.

Blockchain security provider PeckShield independently confirmed the active exploitation targeting Gnosis Pay users. The firm issued public warnings encouraging account holders to verify their exposure status and move assets to secure locations. Throughout the incident, Gnosis maintained its commitment to absorb all financial losses experienced by users.

Reimbursement Promise Highlights Smart Contract Payment Challenges Gnosis has not yet disclosed the total financial impact of the security breach. A comprehensive technical post-mortem analyzing the exploit methodology remains unpublished. The exact number of compromised accounts has not been confirmed in official communications.

This incident intensifies scrutiny of blockchain-based payment infrastructure security. Gnosis Pay represents an innovative approach to cryptocurrency spending, connecting non-custodial wallets directly to Visa’s payment network for mainstream commerce. While this design preserves user sovereignty over funds, it simultaneously creates dependencies on secure permission management.

The vulnerability adds to a concerning pattern of attacks targeting Safe wallet ecosystems. Blockaid previously documented a separate incident resulting in $3 million in losses across 86 Safe wallets deployed on Ethereum and Base networks. These repeated compromises demonstrate how third-party modular components can introduce significant security risks into cryptocurrency payment platforms and wallet systems.

Oliver Dale

Editor-in-Chief of Blockonomi and founder of Kooc Media, A UK-Based Online Media Company. Believer in Open-Source Software, Blockchain Technology & a Free and Fair Internet for all. His writing has been quoted by Nasdaq, Dow Jones, Investopedia, The New Yorker, Forbes, Techcrunch & More. Contact [email protected]

Co-founder Martin Köppelmann said the company will make all users whole after attackers exploited the smart-contract module that governs Gnosis Pay card accounts. No loss figure has been disclosed.

Gnosis Pay, the self-custodial Visa debit card built on Gnosis Chain that lets users spend stablecoins directly from their own Safe wallets, was hit by an active exploit targeting the "delay module" that controls its card accounts, co-founder Martin Köppelmann said in a post on X on Monday.

Gnosis said it would cover any losses in full. "Rest assured, Gnosis will cover all user losses," Köppelmann said. The company has not said how much was taken or how many accounts were affected, and has not published a technical breakdown of the attack.

GNO, the token of the broader Gnosis ecosystem, traded around $118 on Monday, down about 2.8% over 24 hours even as the broader crypto market edged up roughly 0.8% over the same period, according to data from CoinGecko.

The breach strikes at the core promise of smart-contract-based payment cards. Gnosis Pay links a self-custodial wallet to the Visa network, so users keep control of their funds until the moment they spend. Because card accounts delegate spending authority to smart-contract modules, a flaw in one of those modules can move funds under permissions the user already granted.

What Köppelmann saidKöppelmann tied the incident to the delay module directly. The attacker "is able to initiate tx from Safes with such a delay module," he said in a post on X, adding that the team was taking steps to contain the damage "like asking bridge validators to pause" to limit cross-chain transfers.

Gnosis Pay's official account confirmed the issue and initially urged users to act. "A bug related to the @gnosispay delay module has been discovered. We are investigating," the account said, telling users able to withdraw funds from their card to their wallet to do so, and that "affected users will be reimbursed."

Köppelmann then walked back that advice. He said he had deleted an earlier post telling users to withdraw, writing that "most users will not be able to do so, but we are actively working to contain the damage." He said Gnosis believed it could contain the majority of the losses and would "ensure that all users are made whole."

Blockchain security firm PeckShield also flagged the active exploit on Monday, advising Gnosis Pay users to check their exposure and withdraw their EURe and GNO where possible.

How the delay module worksPer Gnosis's own engineering write-up, Gnosis Pay card accounts run on Safe smart accounts fitted with two modules: a Roles Module that authorizes card payments, and a Delay Module that imposes a roughly three-minute wait before outgoing transactions execute. The delay is meant to give users a window to react before a transfer goes through. The modules are part of Zodiac, Gnosis's open-source toolset for Safe-based accounts.

Past AttackThe exploit follows a separate incident a week earlier, in which about $3 million was drained from 86 Safe wallets across Ethereum and Base, according to security firm Blockaid. That attack abused a third-party module called SquidRouterModule, which is unrelated to Gnosis Pay's Delay Module, and Squid said its protocol and users were not involved.

Gnosis said it is still investigating and will share further updates. The company has not committed to a timeline for a full post-mortem or for confirming the total amount at risk.

Cover image via depositphotos.com Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.

An unknown large Shiba Inu (SHIB) investor has broken a month-long pause by withdrawing 400 billion SHIB tokens from the Gnosis Safe Proxy smart contract (0xD13). 

According to data from Arkham Intelligence, the transfer instantly turned the transit address "0xf9905...f64f5", which previously held only negligible balances of third-party tokens, into a large operational wallet with a balance of $1.89 million, the current estimated value of the unknown investor's new SHIB reserves.

A one-time withdrawal of funds from the corporate multisig infrastructure of Gnosis Safe to a fresh external address changes the logic of asset ownership. In the on-chain practice of the crypto market, such an action is rarely taken for passive holding, since the coins are moved from a secure storage setup with distributed approvals to a wallet controlled by a single private key.

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"0xF9905" activity with the Shiba Inu coin (SHIB), Source: ArkhamThe on-chain history shows that this investor acts cyclically, with similar bursts of SHIB accumulation on this address recorded exactly one and two months ago, followed each time by thirty days of complete silence.

Is this whale secretly setting up SHIB's next move?The local timing of the transaction points to a targeted buyout of price consolidation. At the moment the 400 billion coins were credited, SHIB was trading at $0.00000472 while holding a minimal daily gain, and the wallet's portfolio structure confirms that it is isolated for a specific market task. 

Now, the meme coin accounts for 99.4% of the total asset value, while accompanying positions in Ethereum (9.99 ETH worth $16,600), SKYA ($52), and BASED ($5.70) play a technical role or represent residual balances from previous swaps.

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Since Arkham has not yet recorded a transfer of the tokens to hot wallets of centralized exchanges such as Binance or Coinbase, there is no direct pressure on market order books. 

Therefore, the current capital allocation can be interpreted either as preparation for a private over-the-counter (OTC) deal without participation in the exchange order book, or as the formation of a local support level by a large market maker accumulating liquidity at current price values.

Kepler Cheuvreux raises ASML’s European share price target from €1,460 to €1,830.

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15 minutes ago

Tom Lee: Markets have nearly priced in two interest rate hikes from the Federal Reserve this year, and the rise in US Treasury yields is weighing on market sentiment.

Tom Lee said the market is still digesting Kevin Warsh’s remarks from his first press conference last week and repricing the macro environment. Over the past week, oil prices have pulled back, with war premiums contracting. Current oil prices are not far from the roughly $65 level seen before the conflict, indicating the market views related war risks as declining. On the other hand, 10-year U.S. Treasury yields continue to rise, now around 4.5%, higher than the pre-conflict level of roughly 4.2%. The main headwind the market has faced recently has shifted from oil prices to yields. Tom Lee noted that the market is not only focused on 10-year U.S. Treasury yields but also starting to price in potential additional interest rate hikes from the Federal Reserve. According to federal funds futures, the market is currently pricing in nearly two rate hikes this year. Bank of America further projected today that the Fed will raise rates three times this year, in September, October, and December respectively. Jeffrey Gundlach often emphasizes the importance of monitoring 2-year U.S. Treasury yields, as they typically lead the Fed and signal the central bank’s policy direction. Between 2023 and 2025, the relationship between 2-year U.S. Treasury yields and the federal funds rate indicated that the Fed’s policy was overly tight, requiring interest rate cuts. However, this relationship has recently reversed, meaning the Fed would need two rate hikes to catch up with 2-year U.S. Treasury yields. He believes that, at least for now, yields have become a headwind for the market.

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PANews reported on June 10th that, according to The Block, Consensys CEO Joseph Lubin stated that Ethereum is expected to evolve into a protocol entirely based on zero-knowledge proofs (ZK proofs) within the next 3 to 5 years. This will enhance Layer 1 performance through solutions like "Lean Ethereum" and improve composability with various Layer 2 protocols. Lubin stated that current L2 protocols such as Linea and Gnosis have implemented real-time ZK proofs for cross-network synchronous transactions, and in the future, they may enable a single atomic execution environment without bridges, thereby unifying fragmented liquidity. He emphasized that the initial intention of the Rollup approach was to allow L2 to sacrifice some pricing power in exchange for technological exploration, and it is currently moving from a "divergent phase" to a "convergent phase" focused on composability. He also denied the emergence of a "second foundation," stating that the Ethereum Foundation will have at least three teams spun off to focus on protocol, usability, and institutional expansion.