#958 - Vitalik Pitches Options Synthetics, Gnosis Pay Bug, Fluid Incident
Vitalik proposes options as the base primitive for synthetics, Gnosis Pay suffers a delay module bug, and Fluid rewards compromise.
Options-based synthetics design.
Gnosis Pay delay module bug.
Gnosis Chain bridge temporarily paused.
Fluid off-chain Merkle rewards incident.
ETHConf lands in NYC June 8-10, bringing together 5,000+ attendees, 150+ speakers, and 100+ companies across Ethereum, stablecoins, and institutional adoption.
Get your tickets at ethconf.com and use code ETHDAILY for 30% off General and 20% off VIP.
Ethereum creator Vitalik Buterin published a research post proposing a design for synthetic assets and algorithmic stablecoins, using options as the base primitive to replace debt and liquidations in DeFi. The design splits ETH into long and short exposure assets tied to a strike and maturity, removing the need for real-time oracles.
Gnosis Pay disclosed a bug in its delay module, the component that sits between the Gnosis Pay card and the underlying Safe wallet. Users were urged to withdraw funds, the Gnosis Chain bridge was temporarily disabled by bridge validators as a precaution, and Gnosis co-founder Martin Köppelmann confirmed all impacted funds will be reimbursed.
Fluid disclosed a compromise of its off-chain Merkle rewards distribution infrastructure. An attacker submitted fraudulent Merkle roots, drained an estimated 125,000 FLUID and 51,900 GHO on May 28, 2026, and routed proceeds through Tornado Cash, according to YAM. The Fluid team stated the core protocol smart contracts are unaffected.
Aave publishes rsETH exploit post-mortem
Poidh goes live on Ethereum
Ondo Finance shares road ahead
Hardhat 3 is now stable
Joseph Chalom comments on BUIDL
Aya Miyaguchi comments on EF direction
Bitmine adds 26,497 ETH
Polymarket UMA discourse
Coinbase goes live in India
Thorchain vulnerabilities
Disclaimer: Content is for informational and educational purposes only and does not constitute financial, investment, legal, or other professional advice. No representations or warranties are made as to accuracy, completeness, or timeliness. Use of this content is at your own risk, and you should consult a qualified professional before making decisions. No fiduciary or advisory relationship is created
Vitalik Proposes Options-Based Synthetics
The proposed design could replace debt and liquidations in DeFi with options as the base primitive.
Ethereum creator Vitalik Buterin published a research post proposing a redesign of how synthetic assets and algorithmic stablecoins work in an effort to replace debt and liquidations in DeFi with options as the base primitive. Vitalik highlights the issues with Collateral Debt Position (CDP) systems, which require real-time oracles to trigger liquidations. Oracles are the weakest link. All it takes is one bad price feed to trigger cascading liquidations.
Instead of debt positions that get liquidated, users could split ETH into two assets long exposure and short exposure assets tied to a strike price and maturity date. At maturity, an oracle resolves and each side gets its share. Because both assets always equals 1 ETH, liquidation becomes mathematically impossible.
In the proposed design, the system can use the same long-delay oracles that prediction markets use. The tradeoff, however, is a need for regular rebalancing, and slippage costs across repeated rebalances. Vitalik concluded that the design makes more sense when the goal is price stability rather than a perfect USD peg.
ETHConf lands in NYC June 8-10, bringing together 5,000+ attendees, 150+ speakers, and 100+ companies across Ethereum, stablecoins, and institutional adoption.
Get your tickets at ethconf.com and use code ETHDAILY for 30% off General and 20% off VIP.
Disclaimer: Content is for informational and educational purposes only and does not constitute financial, investment, legal, or other professional advice. No representations or warranties are made as to accuracy, completeness, or timeliness. Use of this content is at your own risk, and you should consult a qualified professional before making decisions. No fiduciary or advisory relationship is created
Gnosis Pay Delay Module Hack
Gnosis Pay disclosed a bug in its delay module, and temporarily disabled the Gnosis Chain bridge as a precautionary measure.
Gnosis Pay disclosed a bug in its delay module, the component that sits between the Gnosis Pay card and the underlying Safe wallet. Gnosis Pay is a payments network that issues Visa debit cards linked directly to self-custodial Safe wallets, allowing users to spend crypto at any Visa-accepting merchant. Users were urged to withdraw funds from their Gnosis Pay card to their wallet.
Gnosis co-founder Martin Köppelmann confirmed the hack and said that all impacted funds will be reimbursed. As a precautionary measure, the Gnosis Chain bridge was temporarily disabled by bridge validators while the issue was investigated. No official all-clear has been issued as the incident is still developing.
ETHConf lands in NYC June 8-10, bringing together 5,000+ attendees, 150+ speakers, and 100+ companies across Ethereum, stablecoins, and institutional adoption.
Get your tickets at ethconf.com and use code ETHDAILY for 30% off General and 20% off VIP.
Disclaimer: Content is for informational and educational purposes only and does not constitute financial, investment, legal, or other professional advice. No representations or warranties are made as to accuracy, completeness, or timeliness. Use of this content is at your own risk, and you should consult a qualified professional before making decisions. No fiduciary or advisory relationship is created