algorithmic

Vitalik Buterin posted on the X platform stating that algorithmic stablecoins belong to true DeFi. He believes that if there are high-quality algorithmic stablecoins backed by ETH, even if the majority of liquidity is supported by CDP holders holding negative algorithmic dollars, the ability to transfer counterparty risk to market makers remains an important feature. Even if algorithmic stablecoins are backed by RWA, if they can ensure sufficient collateral in the event of a single RWA failure through over-collateralization and diversified allocation, it is also an effective improvement in risk characteristics for holders.He pointed out that the industry should develop in these directions and gradually move away from using the dollar as a pricing unit, shifting towards a more universal diversified index. Additionally, the current operation of depositing USDC into Aave does not fall under the aforementioned category.

According to CoinDesk, the Brazilian Congress's Science, Technology, and Innovation Committee has approved a bill report aimed at banning algorithmic stablecoins.The bill will prohibit the issuance or trading of stablecoins like USDe from Ethena and Frax, which maintain their value through algorithms rather than fully collateralized assets, requiring all stablecoins issued in Brazil to be fully backed by segregated reserve assets. The bill also raises transparency requirements and classifies the issuance of uncollateralized stablecoins as a new criminal offense, with violators facing up to eight years in prison. For stablecoins issued abroad (such as USDT and USDC), the new regulations require that only companies authorized to operate in Brazil can offer such assets, and exchanges are responsible for ensuring that their issuers comply with regulatory standards similar to those in Brazil, or else they must bear the related risk management responsibilities themselves. The bill still needs to be reviewed by Brazil's Finance and Taxation Committee and the Constitution, Justice, and Citizenship Committee before being submitted to the Senate to become formal law.

BitMine Chairman Tom Lee posted on the X platform, stating that typically during the last holiday trading period of the year, many institutional investors choose to exit the market, shifting the dominant forces in the market towards algorithmic trading and robotic trading programs. Additionally, the selling behavior driven by tax avoidance at the end of the year compounds these factors, collectively shaping the market dynamics in the last few days of December.Tom Lee previously noted in BitMine when disclosing the purchase of 44,463 ETH last week that as the year-end holidays approach, overall market activity tends to decline. Tax-related selling can exert temporary pressure on cryptocurrency and related stock prices, and this impact is usually most pronounced between December 26 and December 30. BitMine is adjusting its market strategy based on this seasonal characteristic.

ChainCatcher news, according to official social media announcements, Huobi HTX will hold a live broadcast today at 20:00 on the theme "A New Era of Stablecoins: Algorithmic Anchoring Sparks a Paradigm Revolution, Reshaping the Global Monetary Order!" The USDD 2.0 and RWA.LTD project teams, along with crypto KOLs such as Beihai, Harper, and Riconi, will be invited to discuss how algorithmic stablecoins impact the global financial system and future development trends. This event will be broadcast live on Huobi and X Space simultaneously.

ChainCatcher news, according to Cointelegraph, Sonic Labs has canceled its plan to launch an algorithmic stablecoin pegged to the US dollar and instead opted to develop an alternative stablecoin product priced in UAE Dirhams.Sonic Labs co-founder Andre Cronje confirmed the news on the X platform, stating: "We will no longer issue an algorithmic stablecoin pegged to the US dollar, but will issue an alternative linked to the digital Dirham, which is settled in US dollars but is absolutely not an algorithmic stablecoin based on the US dollar."It is reported that the UAE has previously announced plans to launch a central bank digital currency (CBDC) digital Dirham in the fourth quarter of 2025.

ChainCatcher news, Sonic Labs co-founder Andre Cronje posted: "I'm pretty sure our team has cracked the algorithmic stablecoin, but given past events, I'm not sure we should implement it." Andre Cronje hinted that the potential algorithmic stablecoin would be an independent project from Sonic (formerly known as Fantom).Additionally, a user suggested that Andre Cronje name the product "Anchor," in honor of the decentralized lending platform Anchor Protocol that drove the widespread adoption of UST. Andre Cronje seems to be considering this request.

ChainCatcher news, Sonic co-founder Andre Cronje (AC) disclosed more details about his previously announced algorithmic stablecoin project on X. With a TVL of $10 million, the annual percentage rate (APR) can exceed 200%; with a TVL of $100 million, the APR is about 23.5%; when the TVL exceeds $1 billion, the APR will stabilize around 4.9%. AC finally stated that he will form a team to fully launch the project.Previous news, AC mentioned in a post on X last week that the team has made technical breakthroughs in algorithmic stability, but is uncertain whether to launch due to concerns about the dark history of this sector.

ChainCatcher news, according to The Block, the crypto market rebounded after the release of the US CPI data. Presto Research analyst Min Jung stated, "The initial CPI reaction was strong, but as investors took a more cautious approach, realizing that more data is needed to confirm inflation trends, the market rebounded."BTC Markets analyst Rachael Lucas attributed the market recovery to trading bots responding to the stability of macroeconomic conditions, "Algorithmic trading plays a significant role in these rapid movements, with many bots programmed to react instantly to keywords related to Powell, CPI data, and other major economic reports. Given the recent volatility driven by clearing, any stability in macro conditions could trigger positive buybacks, especially from these automated strategies."Lucas explained that the market seems to be shaking off tariff-related concerns and digesting the latest CPI data, as prices are rising without prominent bullish catalysts. "Risk assets, including cryptocurrencies, have responded positively to the stability of macroeconomic conditions, and if liquidity conditions remain supportive, the market may be preparing for the next leg up."

ChainCatcher news, the Solana ecosystem algorithmic stablecoin protocol Nirvana Finance has announced that it has opened the claims for compensation and will launch Nirvana V2 on December 18 at 2:00. Original ANA holders can experience the application in advance.Previously, in July 2022, hacker Shakeeb Ahmed stole approximately $3.5 million in stablecoins by manipulating the protocol's pricing mechanism. After collaborating with the U.S. Department of Justice, Department of Homeland Security, and IRS, Nirvana successfully recovered the stolen funds, and Ahmed was sentenced to three years in prison, during which he was ordered to return the cryptocurrency and pay $3.4 million in restitution. (Jin Shi)

ChainCatcher news, according to Jinshi reports, Japan's Finance Minister Shunichi Suzuki stated that they are closely monitoring the volatile stock market dynamics, but are not currently at the stage of taking actual action.He pointed out that algorithmic trading is one of the multiple factors leading to the market's sharp decline, and not the sole reason. The stock market is influenced by economic conditions, foreign exchange, corporate activities, and various other factors. Shunichi Suzuki refrained from commenting on the remarks made by Bank of Japan Deputy Governor Uchida and emphasized that the specific details of monetary policy are determined by the Bank of Japan.

ChainCatcher news, according to Business Wire, the Bahamas Securities Commission announced that the "Digital Assets and Registered Exchanges Act 2024" (DARE 2024) has been passed by the Bahamas Parliament and has become law. This bill builds on the 2020 DARE Act and introduces comprehensive reforms aimed at addressing the evolving landscape of digital assets and cryptocurrency markets.It is reported that the new law covers a broader range of digital asset activities, including advisory management services, digital asset derivatives, and investment services. The new law incorporates provisions related to digital asset custody and introduces the first disclosure system for digital asset staking. DARE 2024 also provides a clear definition for stablecoins, stipulating the registration of existing stablecoins and acceptable forms of reserve assets, while establishing new requirements for the custody, segregation, reporting, and redemption of reserve assets. The issuance of algorithmic stablecoins is explicitly prohibited.

ChainCatcher news, according to The Block, the algorithmic crypto trading platform Tread.fi, founded by former Morgan Stanley employees, has completed a $3.5 million seed funding round. This round was led by New Form Capital, with participation from Aquanow, Varys Capital, GBV Capital, Thanefield Capital, and others.David Jeong, founder and CEO of Tread.fi and former vice president of quantitative research at Morgan Stanley, declined to comment on the valuation but stated that this funding round utilized a Simple Agreement for Future Equity (SAFE) structure, accompanied by a symbolic letter, laying the groundwork for the next funding round in the first quarter of 2025.

According to ChainCatcher, The Block reported that U.S. Senators Kirsten Gillibrand and Cynthia Lummis have introduced a stablecoin bill.The bill will require stablecoin issuers to hold a one-to-one cash or cash-equivalent reserve to back their tokens, prohibit unsupported algorithmic stablecoins, and assert that both issuers and users cannot use stablecoins for illegal or unauthorized purposes such as money laundering.The bill also intends to establish a federal and state regulatory framework for stablecoin issuers to maintain a dual banking system, granting federal and state entities the authority over stablecoin charters and enforcement.

ChainCatcher news, according to Cointelegraph, Zhao Changpeng is exploring the possibility of launching smaller algorithmic stablecoins to provide investors with alternatives to the currently dominant stablecoins.Zhao Changpeng expressed concerns about the lack of transparency and unpredictable risks associated with large stablecoins like Tether and Binance USD. Therefore, Binance is developing algorithmic stablecoins and diversifying its stablecoin collaborations to mitigate potential risks.

ChainCatcher news, according to the official Olympus DAO website, Olympus DAO has officially integrated with the OKX Web3 wallet. Users can connect the OKX Web3 wallet plugin to provide liquidity, stake stablecoins, and trade on Olympus DAO. Olympus is a decentralized reserve currency protocol based on the OHM token, with each OHM token backed by a basket of assets stored in the Olympus treasury.It is understood that the OKX Web3 wallet supports over 60 public chains, with a unified app, plugin, and web interface covering five major areas: wallet, DEX, earning coins, NFT marketplace, and DApp exploration. It also supports features such as the Ordinals marketplace, creating MPC wallets, exchanging gas, iCloud/Google Drive backup for mnemonic phrases, custom networks, and connecting hardware wallets. In addition, the OKX Web3 wallet will soon support AA account abstraction.

ChainCatcher news, according to the algorithmic stablecoin protocol Frax Finance's official website, Frax Finance has officially integrated with the OKX Web3 wallet. Users can connect the OKX Web3 wallet plugin to perform stablecoin exchanges, staking, and more on Frax Finance. Frax Finance is the first partially algorithmic stablecoin, minted using 1 USD of USDC + FXS. Similarly, burning 1 FRAX can yield 1 USD of USDC + FXS.It is reported that the OKX Web3 wallet is the most comprehensive heterogeneous multi-chain wallet, supporting over 60 public chains, with a unified experience across app, plugin, and web platforms, covering five major areas: wallet, DEX, earning coins, NFT marketplace, and DApp exploration. It also supports features such as the Ordinals marketplace, creating MPC wallets, exchanging gas, iCloud/Google Drive backup for mnemonic phrases, custom networks, and connecting hardware wallets.In addition, the OKX Web3 wallet will soon support AA account abstraction. (Source link)

ChainCatcher news, according to Cointelegraph, the algorithmic currency system developer Array, based on smart contracts and AI, has received a $10 million investment from Temasek at a valuation of over $100 million.It is reported that Array's smart contract platform ArrayFi aims to enable decentralized applications powered by its proprietary AI algorithm ArrayGo on top of its network. The system is expected to have various use cases, including payments, remittances, and investments. (source link)