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The decentralized yield trading protocol Pendle announced the expansion of its one-click looping feature, now supporting yield-bearing assets and tokenized stocks.According to The Defiant, stock long positions on the Base network are realized through Aave loans. At the same time, fees for non-PT positions on PendleLoop will be waived until December 31.

Bitget's Head of Greater China, Xie Jiayin, shared his thoughts on attending Token2049 in Singapore on Twitter.First, users are becoming increasingly professional and are starting to redefine products. The demand for options, strategy squares, and other tools that enhance capital efficiency is being proposed by users. For institutions, the improvement in capital efficiency brought about by tokenization is a core demand.Second, the bubble is clearing, and projects are beginning to de-tokenize. They are no longer solely relying on issuing tokens for marketing but are instead creating real value through payment, asset management, and brokerage services.Third, the industry is welcoming a clear regulatory framework, which will inevitably bring short-term pain. In the long run, compliance and institutionalization will drive the industry to mature into a robust financial infrastructure.

Crypto trader Rune stated on platform X that the official documentation of PaperTrade has disclosed a "vulnerability" risk in the pricing mechanism at the protocol level. According to the screenshots of the displayed documentation, attackers can manipulate prices using the Best Bid and Offer (BBO) from the Hyperliquid order book. This risk involves unresolved price manipulation pathways, contract economic mechanisms, risk exposure control, as well as operational protective measures and permission management mechanisms.In addition, Rune also forwarded a tweet from community user boblob, which revealed that two wallets are suspected of actively exploiting "attacks" on the PaperTrade platform, causing a slight fluctuation of about 10-20 basis points in the ETH price on the Hyperliquid platform through trades totaling approximately 20 million dollars. Boblob further added that there are obvious issues with the current PaperTrade protocol that need to be fixed as soon as possible, or it may affect the long-term sustainability of the protocol.

The decentralized exchange Orca based on Solana has announced a merger with the lending platform Loopscale, with the new entity named Formation. After the merger, the team will be led by Loopscale co-founder Luke Truitt as CEO. Formation plans to combine Orca's trading infrastructure with Loopscale's lending and investment vaults to provide a one-stop path for emerging assets from issuance, financing to trading.The company aims to extend from crypto trading and lending into capital-intensive fields such as AI, energy, robotics, and defense. Truitt stated that the pace at which the frontier economy creates new business models and financing demands is faster than the evolution of traditional market infrastructure. Formation claims that traditional financing is too costly for smaller-scale transactions and plans to reduce costs and eventually connect to regulated U.S. capital markets. In the coming year, Formation will launch tools and new investment strategies aimed at asset issuers and has already partnered with Figure, Shinhan Asset Management, Superstate, R3, and Securitize to promote asset tokenization and distribution.Christopher Montagano from Orca will serve as Formation's Chief Strategy and Legal Officer, stating that mere liquidity is not enough to scale assets. Both parties confirmed that the existing agreements will still form the basis for the ORCA and xORCA token networks, and the financial terms of the merger have not been disclosed.

Regarding the previous incident where the FlashLoopAdapter vulnerability caused a loss of approximately 114 ETH from two Safe multi-signatures, Aave founder Stani Kulechov stated that the contract with the vulnerability is not the Aave v3 contract, but rather a third-party external adapter built on top of Aave, which does not affect Aave v3 itself.Previously, SlowMist disclosed that the FlashLoopAdapter has an access control vulnerability, which attackers exploited to bypass permission checks and transfer assets from two Safe multi-signatures that enabled the module, ultimately resulting in a loss of approximately 114.09 ETH.

Slow Fog issued a security alert stating that the Aave V3 Loop Safe Module has a security vulnerability, allowing attackers to forge Safe authentication and execute arbitrary modules, stealing approximately 114.09 ETH from two Safe multi-signature wallets.Attackers bypassed authentication by forging a Safe that always returns true and executed module transactions using a router and calldata that could be arbitrarily controlled, transferring weETH and Aave collateral. After repaying approximately 1300 WETH in debt, the attackers unlocked the collateral.

Elon Musk stated that the "Boring" tunnel company is constructing a super high-speed rail tunnel between Austin and San Antonio, with speeds exceeding 200 miles per hour. Currently, this journey could take up to 2.5 hours, but the tunnel will reduce it to under 30 minutes.

Visa has informed participants in the payment industry that the "digital goods media" merchant category code used by Crossmint for processing Meme coin transactions is not applicable for Meme coin purchases. Visa has notified payment processors, including Checkout.com, to stop using this category code and has provided a transition period for relevant institutions, which is expected to end next week.Previously, Robinhood Wallet and Fomo users could purchase Meme coins using Visa and Mastercard credit cards through Apple Pay or Google Pay, with the transactions processed by Crossmint, but categorized as digital media transactions such as e-books and movies, thereby bypassing cryptocurrency transaction classification and earning regular credit card points or cash back.JPMorgan Chase had previously raised concerns with Visa regarding the classification of these transactions, and Visa subsequently determined that at least one transaction was misclassified and should not have received credit card rewards. In the future, purchases of Meme coins will need to be processed as cryptocurrency transactions and will be subject to Visa's corresponding rules and restrictions.

According to Business Insider, Discovery Loop, an AI startup founded by former Google Chief Scientist Jeff Dean after his departure, is undergoing a new round of financing with a target valuation of approximately $50 billion. Just weeks ago, the company completed a financing round of $1 billion at a valuation of about $10 billion.Discovery Loop is dedicated to automating experiments through AI, accelerating major discoveries in the fields of science and engineering. The first round of financing was led by Radical Ventures and Khosla Ventures, with participation from Lightspeed, Kleiner Perkins, and others. Alphabet was also a founding investor. The company's co-founder team consists of Google technology veterans, including Sanjay Ghemawat, Quoc Le, and Oriol Vinyals, who each have deep expertise in distributed computing, deep learning, and reinforcement learning, respectively.

According to The Defiant, the tokenized credit fund HINC launched by Securitize in collaboration with Neuberger is now live on the Solana lending protocol Loopscale as collateral, allowing qualified investors to borrow USDG stablecoins without redeeming their holdings. HINC was launched on August 18 on Avalanche, Ethereum, Solana, and Sui, primarily holding assets such as high-yield corporate bonds, CLO tranches, and bank loans, with a minimum subscription of $100,000 and a fee rate of 0.6%, available only to qualified investors and qualified purchasers.Mary Gooneratne, co-founder of Loopscale, stated that HINC brings a fundamentally different type of collateral to the Solana credit market, supporting actively managed high-yield strategies that indicate on-chain lending can surpass crypto-native assets and short-duration instruments. RedStone uses its Trusted Single Source Oracle standard to price HINC, publishing the manager's daily NAV in a signed, timestamped, on-chain format for protocol verification and triggering liquidation events. Loopscale currently has a TVL of approximately $91.3 million and active loans of $55.9 million, ranking 27th on DefiLlama.HINC is the third Securitize product to go live on the protocol, following Apollo's tokenized credit fund ACRED and Securitize's own publicly listed stock SECZ on the NYSE as collateral.

Dialectic Meccanico announced plans to launch the on-chain vault Starloop based on Makina on Base, expected to go live in September 2026, for eligible tokenized SpaceX exposure holders to put their positions to use.After users deposit tokenized SpaceX exposure, the vault will borrow USDC against it as collateral and deploy it to approved on-chain opportunities, with net earnings flowing back to depositors while retaining exposure to the underlying assets. Dialectic is the first operator of Makina and has operated public vaults such as DUSD and DETH.

According to Digitalasset, the South Korean National Tax Service plans to introduce commercial tracking programs used by domestic and foreign investigative agencies to track and analyze the flow of funds between digital asset wallets, in order to close the tax loophole for virtual assets in personal wallets.The South Korean government stated that digital assets held in personal wallets and overseas exchanges are subject to taxation as long as there is income generated from transfers or loans. The overseas exchanges will respond through the Crypto Asset Automatic Information Exchange Framework (CARF).

According to informed sources, AI startup Discovery Loop, founded by former Google chief scientist Jeff Dean, is in talks to raise $1 billion, corresponding to a valuation of approximately $10 billion, with specific financing terms still subject to change.Discovery Loop aims to accelerate discoveries in the fields of science and engineering through automated machine learning, science and engineering, and the parallel execution of thousands of experiments. Its initial funding is led by Radical Ventures and Khosla Ventures, with participation from Lightspeed, Kleiner Perkins, and Doerr Capital, while Alphabet serves as the founding investor and cloud services partner. The founding team of Discovery Loop also includes former core researchers from Google such as Sanjay Ghemawat, Quoc Le, and Oriol Vinyals.

According to official news from the decentralized stablecoin USDD, the DeFi protocol Pendle has integrated PT-s USDD into its PT Looping module. Users can complete looping loan operations with one click through the Pendle interface, without the need for cross-platform operations. Currently, the looping loan APY for PT-s USDD in the Morpho/USDT market can reach up to 20.87%.It is introduced that the PT Looping module is based on the PT-s USDD/USDT and PT-s USDD/USDC markets on Morpho. This integration aims to significantly enhance the capital efficiency for USDD holders and, combined with the fixed income of PT-s USDD and borrowing space, forms a robust yield portfolio. The official reminds users that they can participate according to their own risk preferences.

The AI Agent no-code operating platform X-Agent based on Web3 social networks has officially become a merchant in the OKX Agent Marketplace, launching three production-level risk analysis MCP (Model Context Protocol) tools, and deeply integrating with OKX Onchain OS and OKX Agentic Wallet, promoting the evolution of AI Agents from mere software logic to entities with autonomous economic behavior capabilities.The first batch of three pay-per-use MCP tools:X-Agent encapsulates the underlying risk assessment capabilities verified by the platform into standard MCP services for other Agents within the ecosystem to automatically discover and call:Token Security Scan: Identifies Rug Pull, Pi Xiu schemes, and contract restriction risks (0.03 USDT / use).Wallet Reputation: Evaluates the historical behavior of counterparties and "smart money" (0.01 USDT / use).Portfolio Health: Analyzes position concentration and volatility risks (0.01 USDT / use).Deep integration with the OKX ecosystem architecture, enabling machine micropayments:x402 machine-native settlement: Combines gas-free USDC settlement based on EIP-3009 with the Coinbase x402 protocol, achieving minimal per-use payments as low as 0.01 USDT on OKX X Layer, without the need for pre-deposit or manual approval.OKX TEE hardware-level custody: Integrates with OKX Agentic Wallet, storing private keys within OKX TEE (Trusted Execution Environment), with X-Agent authorized only through short-term session signatures, ensuring asset security from the source.Idempotent automated execution: Introduces Pre-Broadcast protection and idempotent state machines to prevent duplicate charges or state conflicts in on-chain autonomous tasks.Building a "two-way cycle" Agent economy:This collaboration marks the realization of a full-path connection in the X-Agent architecture from "identity - payment - execution - monetization - distribution." Agents can autonomously procure external services through OKX Agentic Wallet and package their capabilities into paid MCP tools to earn revenue, truly achieving a value closed loop for a decentralized Agent economy.

The Ethereum Layer 2 protocol Loopring announced on platform X that Loopring DEX will immediately cease all trading services. The relayer will be taken offline immediately. The team stated that the reason for the shutdown is the failure to achieve meaningful adoption, as the lack of a virtual machine for the first zkRollup has limited ecological growth. Additionally, LRC being delisted from major exchanges in 2026 accelerated the outcome, while modern zkEVM solutions have made its dedicated architecture seem outdated.The shutdown process is as follows: 1. The team will publish a final balance list for all users in the coming days, covering spot balances and liquidity pool positions automatically converted to underlying assets; 2. Upgrade the contract to a version that only allows whitelisted addresses to transfer, to support batch distribution; 3. The balance list will be open for a two-week review period for users to verify; 4. After the review period ends, assets will be sent in batches directly to users' L1 wallet addresses, with only accounts holding a balance value of over $10 included in the distribution. Users do not need to take any action or pay Gas fees, as all transaction costs will be borne by the team.

The National Association of Attorneys General, the National Association of Assistant U.S. Attorneys, the International Association of Chiefs of Police, and the National Sheriffs' Association jointly sent a letter to the Department of Justice and the White House on Tuesday, warning that Section 604 of the Digital Asset Market Structure Clarity Act contains serious enforcement loopholes that could make it difficult for law enforcement agencies to investigate and prosecute crypto-related criminal activities. The letter pointed out that Section 604 includes broad exemption clauses that may allow individuals or entities assisting in the circulation of crypto assets to evade regulatory accountability, disrupting the investigative and enforcement powers that have long been relied upon.The four organizations emphasized that their concerns are not aimed at developers who simply write or publish software code, but rather at the broad exemptions that may provide a shield for illegal activities. The core of the controversy lies in Section 604—the "Blockchain Regulatory Clarity Act" (BRCA) provision, which was originally a standalone bill but was later incorporated into the Clarity Act, aimed at providing a safe harbor for non-custodial developers, clarifying that they do not fall under money transmission entities. Law enforcement organizations believe this move will create obstacles for investigations into crypto crimes.Additionally, the letter pointed out that several other provisions of the bill would "reduce transparency, weaken accountability mechanisms, and create loopholes in the anti-money laundering framework." On the same day, nearly a hundred Catholic leaders representing parishes across the country also issued a warning, stating that the bill could weaken protections against human trafficking. In response, White House cryptocurrency advisor Patrick Harker insisted that the Clarity Act is a bill that "supports regulation and supports law enforcement," emphasizing that the U.S. must proactively set standards or risk passively accepting the rules of other countries.