A small pricing error in wstETH collateral caused $27 million in Aave liquidations, highlighting the critical role of price oracles and automated risk systems in DeFi. A temporary 2.85% pricing discrepancy in wstETH collateral triggered about $27 million in liquidations on Aave, showing how even small technical issues can have major financial consequences in automated DeFi lending systems. The liquidation wave occurred because Aave’s system briefly valued wstETH at about 1.19 ETH instead of its market value near 1.23 ETH, making some borrowing positions appear undercollateralized. Price oracles are critical infrastructure in DeFi because they feed external market data to smart contracts, determining collateral values, loan health and when automated liquidations should occur. Read more
Iran-linked contracts drove prediction market activity higher as the CFTC opened rulemaking and Democrats moved to ban war and death bets. Prediction market activity has climbed sharply as traders flock to contracts tied to the escalating US-Iran conflict, while Washington moves toward clearer federal rules for event contracts and a legislative push to explicitly bar markets tied to war, terrorism and death. Notional trading volume on Polymarket and Kalshi rose to new all-time highs during the week ending Monday, March 9, to $2.49 billion and $2.85 billion, respectively, according to Token Terminal data. The growing activity has pushed the total notional volume across all prediction markets to $145 billion through 2.8 million unique users, data from Dune shows. While the ongoing conflict drives more activity to these platforms, US regulators are seeking public feedback on new prediction market legislation and weighing a potential ban on war and terrorism-related event contracts. Read more
A symmetrical triangle breakout and an unresolved supply overhang are boosting the case that Ether may go as high as $2,800 in March. Ether (ETH) bulls are eyeing a move back toward $2,800 in March, with at least three indicators showing ETH price potential to rise higher. Key takeaways: Ether’s price jumped by over 9% toward $2,280 on Monday. Read more
Regulators found 6.65 million AML violations at Bithumb, including 45,772 crypto transfers involving 18 unregistered overseas VASPs. South Korea has fined crypto exchange Bithumb 36.8 billion won (about $24.5 million) and imposed a six-month partial business suspension after finding widespread violations of Anti-Money Laundering (AML) rules, according to a Yonhap News Agency report. According to Yonhap, regulators identified about 6.65 million violations during an AML inspection, including failures related to customer identity verification, transaction restrictions and record-keeping requirements. Authorities found Bithumb facilitated 45,772 crypto transfers involving 18 unregistered overseas virtual asset service providers (VASPs), in violation of South Korea’s AML rules. The Financial Intelligence Unit (FIU) under the Financial Services Commission (FSC) reportedly decided on the penalties following a sanctions deliberation committee meeting reviewing the exchange’s compliance with the Act on Reporting and...