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Good morning. Here’s what’s happening:

Prices: Traders are increasingly targeting lending protocols in the wake of the recent attack on Curve.

Insights: The recent hack of Curve Finance over the weekend has significantly increased the likelihood of liquidation for founder Michael Egorov's $168 million lending position. PLUS: The Litecoin Foundation and Ballet tantalize with an upcoming collectible card sale.

 

Prices

Bitcoin (BTC) $29,273 −195.9 ▼ 0.7%	Ethereum (ETH) $1,861 −14.6 ▼ 0.8%	CoinDesk Market Index (CMI) 1,229 −8.3 ▼ 0.7%
S&P 500 4,588.96 +6.7 ▲ 0.1%	Gold $2,001 +41.0 ▲ 2.1%	Nikkei 225 33,172.22 +413.0 ▲ 1.3%

BTC/ETH prices per CoinCryptoUs, as of 7 a.m. ET (11 a.m. UTC)

 

Bitcoin and Ether Remain Stable, While CRV Slumps as Market Anticipates Imminent Liquidation

As the Asian business day commences, major cryptocurrencies like bitcoin and ether remain stable, but there's a sea of red in other markets.

Bitcoin has experienced a slight decline of 0.16%, currently trading at $29,236, while ether is also down by 0.27%, with its price at $1,857.

Callie Cox, the US Investment Analyst at eToro, attributes the lack of movement in the crypto majors to seasonality.

“The seasonal patterns we see show that bitcoin prices have been a little bit weaker in August and September,” Cox said on CoinDesk TV's "First Mover" program. “People are going off to the beach; they're not looking at their portfolios or trading their portfolios.”

However, amidst the bustling market, chaos is on the horizon.

CRV, the token associated with Curve Finance's decentralized autonomous organization (DAO), has experienced a significant 10.3% decline, currently trading at 56 cents. This downturn was triggered by an exploit caused by a bug in the programming language used within its technology infrastructure.

One of the contributing factors to the market's current reaction lies in the lending position maintained by founder Michael Egorov on the Aave lending protocol.

Egorov currently holds a lending position worth $168 million on Aave, which is secured by CRV (Curve Finance token). However, this position is currently at risk of liquidation. If the liquidation were to occur, it could trigger a domino effect of rapid price declines, leading to a cascade of liquidations and flooding the market with the assets being liquidated.

Therefore, lending protocol tokens such as AAVE, COMP from Compound, MPL from Maple Finance, and MKR from Maker are at the forefront of the market downturn. AAVE has experienced an 8% decrease, while COMP has witnessed an 8.8% decline, MPL has dropped by 3.2%, and MKR has seen a 2% decrease.

Asset	Ticker	Returns	DACS Sector
Gala	GALA	+12.8%	Entertainment
XRP	XRP	+7.5%	Currency
Terra	LUNA	+4.2%	Smart Contract Platform

Asset	Ticker	Returns	DACS Sector
Stellar	XLM	−19.0%	Smart Contract Platform
Dogecoin	DOGE	−13.4%	Currency
Chainlink	LINK	−10.4%	Computing

 

Insights

Curve Chaos Continues

The turmoil within Curve Finance has significantly increased the vulnerability of founder Michael Egorov's $168 million lending position, posing a substantial risk of liquidation. Such an event could have far-reaching repercussions across the decentralized finance (DeFi) landscape. According to data from the blockchain analytics site DeBank, Egorov has collateralized his loans from various DeFi protocols with $168 million worth of CRV, Curve's native token, which represents nearly 34% of the token's total market capitalization.

In the wake of an exploit that occurred over the weekend at Curve, the price of CRV has plummeted by more than 20%, bringing Egorov perilously close to the liquidation threshold. The situation warrants close attention as the potential liquidation of such a significant amount could have profound implications for the DeFi sector as a whole.

Litecoin, Ballet's Silver Cards

Litecoin, often dubbed the "digital silver" in contrast to bitcoin's reputation as the "digital gold," is now being leveraged in a new crypto promotion orchestrated by its creator, Charlie Lee, and his brother Bobby Lee. This initiative aims to capitalize on the heightened interest in the project due to a significant event in the blockchain's lifecycle known as a "halving," set to take place this week.

Bobby Lee, the CEO and co-founder of Ballet, a company specializing in manufacturing special cards for "cold storage" or offline crypto holding, has joined forces with his younger brother, Charlie Lee, who serves as the executive director of the Litecoin Foundation. Together, they have decided to commemorate the blockchain's third halving by crafting 500 collectible cards made from 99.9% pure silver.

The intrinsic value of the cards themselves, considering their silver content alone, is approximately $40 each. However, these unique cards will also be loaded with 6.25 LTC, valued at around $581, enhancing their appeal. The collectible cards are expected to be offered for sale at approximately $1,000, with the premium representing the intangible value they hold for buyers.

It's important to note that all proceeds from the sale of these collectible silver cards will be generously donated to the Litecoin Foundation, aiming to support and further the adoption and development of the Litecoin blockchain, as stated by Charlie Lee.

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