Onchain vault provider Upshift has partnered with asset tokenization firm Superstate to launch a new redemption platform for tokenized real-world assets. Upshift Clear will bridge the settlement gap in the real-world asset (RWA) tokenization sector by “applying the logic of traditional bridging capital onchain,” Upshift said in a release Dedicated USDC stablecoin vaults will provide instant liquidity to RWA holders via a loan when they want to redeem assets. RWA holders looking to settle sales will be “fronted” capital instantly, making the settlement process “T+0… regardless of market hours or banking holidays.” Normally, the process involves offchain infrastructure, net asset value (NAV) calculations, custodian processes, and the use of bank…
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Aave Depositors Stuck As Bad Debt Piles Up
Lending market is the victim in the $292M Kelp DAO hack
Lending market Aave stands to be saddled with as much as $230 million worth of bad debt in the wake of a $292 million hack of the Kelp DAO crosschain bridge. And it could get worse. That’s according to LlamaRisk, Aave’s risk management provider, which outlined two scenarios for the amount of bad debt the lending market will be saddled with. One leaves it with $230 million and another with $123 million. Aave is the fault-free victim of the hack, in which $292 million worth of a token called rsETH was created out of thin air on Kelp DAO and then moved onto Aave, where the hackers took out loans…
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Liquid Staking Issues & Perils
There are efforts to mitigate centralization, but extreme market volatility risks contagion
In our recent article Staking and Liquid Staking: a Primer we covered the fact that staking is rapidly becoming a substantial ecosystem of its own, including via increasing uptake from institutional investors. We explained the differences between simply staking tokens and liquid staking, which enables investors to pledge their tokens but also achieve liquidity by receiving a new token known as a liquid staking token (LST) or liquid staking derivative (LSD), which is typically deployed in decentralized finance (DeFi) to earn yield or other benefits. Sounds great, so what’s the catch? Well, in addition to the potential catches inherent in any young and relatively untested technology – crypto generally but…
