Large crypto lender, Genesis, announced Wednesday that they will be suspending withdrawals and new loan originations following the collapse of FTX. Current withdrawal requests exceed Genesis’ liquidity profile. Genesis announced that they will work with advisors to rectify the situation. Earlier this week, Genesis reported exposure to FTX of approximately $175M, stemming from blocked funds of their derivatives business in their FTX trading account. As a result, Genesis’ parent company DCG injected $140M into the entity.

Gemini Earn has been paused as Genesis Contagion permeates. Genesis is a lending partner of Gemini. As FTX-owned Liquid Global announced they were halting withdrawals, news broke that customers using crypto lender SALT were informed that they had suspended withdrawals amid FTX’s collapse. The recipients of the letter shared the news on Twitter. SALT CEO, Shawn Owen, wrote in a memo that funds will remain withheld until the company assesses the extent of the damage.

In other depths of the crypto market, Yearn Finance just announced via twitter that yBribe, their new bribe platform for Curve gauge voting, will be going live soon. The new blacklist function separates yBribe from gauge voters who already have dedicated bribe markets such as Convex/Votium. Users active in Bribe markets can now more efficiently target the entire veCRV market by splitting bribes between markets.

MetaMask co-founder Dan Finlay is tackling a new initiative called “MobyMask” that aims to proactively protect users from phishing by utilizing “dynamic web of trust” to source phishing reports. They are partnering with Laconic Network, a data availability and verifiability layer powered by cryptographic proofs. Their mission for this project is to eliminate ecosystem phisers. The latest version of MobyMask is focused on twitter phishing but will expand to web apps, smart contract, and social platforms.

- Anthony Loya

Join our Research Team on Thursday at 5pm ET to discuss the SBF & Alameda fallout, 3AC’s coming out party, what is being built in DeFi throughout the bear, and the future of NFTs. We will be joined by Will Clemente, Knower, and Fejau from Reflexivity Research. This is one you won’t want to miss, be sure to RSVP.

On November 9th, a record high of 4.9% of the daily gas used on Ethereum was spent to settle L2 transactions. Ethereum L2s now secure nearly $4.5B of value: more than Avalanche, Solana, and Fantom combined. It is safe to say the alt-L1 rotation has cooled off significantly while Ethereum marches forward towards its rollup centric future.

It’s a sea of red today, which comes as no surprise given the FTX/Alameda contagion that continues to wreak havoc on the crypto market. ETH is attempting to hold the $1200 line and has underperformed BTC over the past 5 days. SOL is the biggest loser of the day, down nearly 7%.

Nitro is one of the first projects aiming to build an SVM compatible chain to leverage the Solana user and developer community. It chose to do so as an L2 on top of the high performance app-specific Cosmos chain, Sei. The Cosmos ecosystem has developed key technologies used by many chains today and is attracting developer and investor attention. The FTX and Alameda implosions have left a considerable dent on the Solana ecosystem, which could make Nitro’s vision of expanding the SVM to other ecosystems critical to the Solana community’s longevity.

Be sure to read the full report here!

Frax Q3 Update

After another quarter in the grueling bear market, FRAX’s supply dropped by ~$300M since early September. However, Frax launched several new products, including frxETH and Fraxlend.

The Implications of ATOM 2.0

ATOM 2.0 gives direction to the Cosmos Hub. The proposal brings ecosystem scalability with Interchain Security, a sustainable revenue model with the Scheduler and Allocator, and improved tokenomics with updated monetary policy and liquid staking.

Circle Yield Reduced to Zero, Gemini Earn Paused as Genesis Contagion Spreads

Genesis powered yield platforms across the crypto industry

ZkSync Sharpens Role in Future of Ethereum With $200M Funding

“No matter how bad this bear market gets, we are well positioned to grow our team,” Steve Newcomb CPO at Matter Labs says

The insights, views and outlooks presented in the report are not to be taken as financial advice. Blockworks Research analysts are not registered broker/dealers or financial advisors. Blockworks Research analysts may hold assets mentioned in this report, further outlined in the Firm’s Financial Disclosures.

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