Michael Egorov raised $42.4 million through Over The Counter (OTC) or handshake deals.
Amidst Curve Finance’s exploit and Michael Egorov’s actions to tackle CRV token liquidity concerns, JP Morgan’s analysts published a report on the DeFi ecosystem’s current state.

The impact of the Curve Finance exploit is rippling across the DeFi ecosystem, causing concern. A report by JP Morgan’s team, led by Nikolaos Panigirtzoglou, highlights that the DeFi space is currently experiencing a slowdown or contraction.

However, in response to this report, TRON’s founder, Justin Sun, countered that Ethereum Layer 2 projects, namely Arbitrum (ARB) and Optimism (OP), along with Tron (TRX) assets, have successfully managed to avoid the DeFi contagion. According to Sun, these projects have attracted more assets and value into their respective ecosystems, demonstrating resilience against the prevailing challenges.

Justin Sun’s Optimism: A Bullish Stance on TRON and Ethereum Layer 2 Tokens

Market participants are concerned about the widespread impact of the DeFi ecosystem’s contagion, which has raised apprehensions about a liquidity crisis and the declining value of the CRV token. During Curve Finance’s exploit and founder Michael Egorov’s efforts to address the CRV token’s liquidity issues, JP Morgan’s analysts have released a report examining the current state of DeFi.

The report penned by the team of analysts headed by Nikolaos Panigirtzoglou, stated:

” While the decline in the CRV token price caused some contagion to DeFi platforms using CRV as collateral, the fallout has been contained so far. However, the overall DeFi ecosystem remains in shrinking or stalling mode.”

Justin Sun, the founder of TRON and a prominent figure in the crypto space, responded to the report by pointing out that TRON’s value has surged in the last two weeks. Additionally, he highlighted the resilience of Ethereum Layer 2 projects, such as Arbitrum and Optimism, which have experienced a rise in their Total Value of Assets Locked (TVL) despite the challenges posed by the rapidly spreading DeFi crisis.

According to an on-chain analyst working for Nansen, Sandra, Michael Egorov raised $42.4 million through Over The Counter (OTC) or handshake deals. In these transactions, he sold 106 million CRV tokens to various DeFi influencers and market makers as of Friday.

Curve Founder sold 106M CRV so far in OTC “handshake” deals, in exchange for $42.4M. pic.twitter.com/EeXoCc0hB3

— Sandra (@sandraaleow) August 4, 2023

In a recent tweet, the analyst provided a comprehensive list of projects and the specifics of their CRV token purchases. Egorov’s efforts to enhance liquidity for the CRV token have garnered positive reception within the DeFi community. Numerous market makers and projects have eagerly purchased CRV, showing their support for the asset, which stabilises various liquidity pools throughout the DeFi ecosystem.

Implementing Support for Account Abstraction Endpoint on Arbitrum Mainnets

Following the successful approval of AIP-2, Arbitrum has now officially implemented support for the account abstraction endpoint on its One and Nova mainnets. AIP-2, the proposed activation on Arbitrum’s One and Nova mainnets, aims to introduce support for a new RPC endpoint called eth_sendRawTransactionConditional. This endpoint addresses a specific concern related to the validation and execution of bundled transactions, particularly for submission to an alternative mempool.

Adopting Ethereum Improvement Proposal (EIP) 4337 has generated significant interest in account abstraction within the EVM ecosystem. However, this proposal introduced a potential challenge for Layer 2 (L2) transaction bundlers. The delay between simulated transaction validation and final inclusion by sequencers could lead to the reversion of bundle submissions, resulting in a loss of value for the bundler and discouraging the operation of such services.

To tackle this concern, Ethereum researchers created the eth_sendRawTransactionConditional endpoint. It permits users to define acceptable block height and timestamp ranges, allowing sequencers to reject transactions that do not meet the required conditions for inclusion during initial validation.

Offchain Labs has successfully developed, tested, and integrated this endpoint in Nitro version 2.0.14, which is now operational on the Arbitrum testnet. The proposal seeks the activation of this endpoint for Arbitrum mainnets by the Arbitrum DAO.

 

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Filed under: Bitcoin - @ August 6, 2023 8:50 am