The Protocol: Polyhedra Promises Buyback Plan After Liquidity Attack

4 hours ago

Welcome to The Protocol, CoinDesk's play wrap-up of the astir important stories successful cryptocurrency tech development. I'm Margaux Nijkerk, CoinDesk’s Tech & Protocols reporter.

In this issue:

Polyhedra Blames Liquidity Attacks for Sudden 80% Price Drop successful ZKJ, Promises Buyback
UK Startup Optalysys Debuts Server for Blockchains
Kraken-Backed Ink Foundation to Airdrop INK Token, Starting With Aave-Powered Liquidity Protocol

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Network News

POLYHEDRA BLAMES LIQUIDITY ATTACKS FOR DROP IN TOKEN PRICE, RELEASES BUYBACK PLAN: Polyhedra, a crypto protocol, announced a buyback program to reconstruct spot aft its token, ZKJ, plummeted implicit 80% successful minutes. An archetypal post‑mortem released successful Asian greeting hours laid retired assorted factors resulting successful the collapse, including a expected coordinated liquidity onslaught connected PancakeSwap’s ZKJ/KOGE pool, important ZKJ deposits by market-making institution Wintermute into centralized exchanges, and a cascade of liquidations connected CEXs similar Bybit. On-chain information reveals that respective addresses had drained millions from the ZKJ/KOGE pool. One removed astir $4.3 cardinal successful liquidity supplier (LP) tokens and dumped 1.57 cardinal ZKJ; others followed, unloading adjacent to 1 cardinal ZKJ each. When the shallow KOGE/USDT excavation couldn’t sorb the merchantability pressure, enactment spilled implicit into the deeper ZKJ/USDT pool, triggering a liquidity spiral, the squad claimed. To stem the hemorrhage, Polyhedra’s squad injected astir $30 cardinal successful USDT, USDC, and BNB arsenic DEX liquidity. It added that nary ZKJ holdings belonging to the squad were sold. Polyhedra affirms it’s conducting a afloat method investigation, and its upcoming buyback inaugural aims to some offset the attack’s interaction and deter akin aboriginal exploits. — Shaurya Malwa Read more.

OPTALYSYS DEBUTS SERVERS FOR BLOCKCHAINS: Optalysys, a U.K.-based startup focused connected unafraid computing, has introduced what it claims to beryllium the world’s archetypal server for blockchains that tin process information astatine standard without decrypting it. The firm’s LightLocker node is simply a server that uses Fully Homomorphic Encryption (FHE), a mathematical method allowing computations to beryllium performed connected encrypted information without compromising the encryption. The past twelvemonth has seen a mates of firms raising money and exploring applications of FHE wrong the cryptocurrency space. Optalysys says its server hardware is purpose-built for blockchain encryption, and offers a cheaper alternate to costly and inefficient GPU-based systems, utilizing 40% little energy. — Ian Allison Read more.

INK FOUNDATION TO AIRDROP TOKEN: The Ink Foundation, the nonprofit down furniture 2 Ink, is launching its autochthonal token INK successful an effort to bootstrap on-chain superior markets done a liquidity-first strategy. The token volition debut connected a decentralized concern (DeFi) lending and trading protocol built connected Aave, and organisation volition statesman via an airdrop to aboriginal users. There volition beryllium nary governance gimmicks oregon fluctuating emissions schedules, the instauration said. INK has a hard headdress of 1 cardinal tokens minted, with nary recourse to alteration the proviso via governance proposals. And dissimilar different Superchain members, Ink says its furniture 2 governance volition stay abstracted from the token. — Shaurya Malwa Read more.

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In Other News

A Securities and Exchange Commission (SEC) filing posted Monday nighttime outlines the narration betwixt Tron DAO, Justin Sun, and SRM Entertainment, a Nevada institution successful the process of changing its sanction to Tron Inc. The filing details a $100 cardinal backstage concern successful nationalist equity (PIPE) deal, paid wholly successful TRX tokens, that gives Sun’s father, Weike Sun, committee power and positions Tron-aligned advisors successful cardinal governance roles. Weike was named chairman, portion Zhihong Liu, besides known arsenic Steve Liu, a strategical advisor to Tron DAO and the CEO of stablecoin issuer Techteryx, and Zi Yang, a elder enforcement astatine Tronscan, joined the board’s audit, compensation, and nominating committees, according to the filing. — Sam Reynolds Read more.
U.S. banking elephantine JPMorgan has announced the aviator of a permissioned USD deposit token called JPMD connected Base, the furniture 2 Ethereum web built by listed speech Coinbase (COIN). Earlier this week, the bank filed a trademark application for a crypto-focused level named JPMD, designed to to connection services specified arsenic trading, exchange, transfer, and outgo services for integer assets, arsenic good arsenic issuance of integer assets. The institution-focused JPMD, an alternate to stablecoins for the bank’s clients, marks the archetypal deployment of JPMorgan’s Kinexys distributed ledger exertion workplace connected a nationalist blockchain, according to a property release. — Ian Allison Read more.
Iranian crypto speech Nobitex has been hacked for $90 cardinal by Israel-linked hacking activistic radical Gonjeshke Darande, according to a blog station from blockchain information steadfast Elliptic. The radical said successful an X post: “After Bank Sepah, it was Nobitex's turn,” referencing their Tuesday cyberattack connected Iran’s state-owned lender. They warned that Nobitex’s interior information and root codification would beryllium released wrong a day, and immoderate assets near connected the speech would beryllium “at risk.” — Shaurya Malwa Read more.

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Regulatory and Policy

The overwhelming bipartisan transition of the U.S. Senate's stablecoin bill, with a 68-30 last ballot that saw a immense surge of Democrats joining their Republican counterparts connected Tuesday, sets a caller high-water people of crypto argumentation efforts successful the U.S. arsenic the authorities present heads to the House of Representatives. The large Democratic backing for the Guiding and Establishing National Innovation for U.S. Stablecoins of 2025 (GENIUS) Act helps springiness it momentum arsenic it lands successful the different chamber, wherever House lawmakers tin either ballot connected it arsenic written oregon prosecute changes that volition necessitate a last circular successful the Senate earlier it tin caput to President Donald Trump's desk. — Jesse Hamilton Read more.

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