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SEC Sues Consensys Over MetaMask

The lawsuit alleges securities violations relating to MetaMask Swap and MetaMask Staking services.

Quick Take

  • SEC sues Consensys over MetaMask Staking.

  • Arbitrum proposes to implement Timeboost.

  • EigenLayer proposes a Uniswap V4 AVS.

  • Igloo acquires the Frame L2.

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SEC Sues Consensys Over MetaMask

The SEC filed a lawsuit against Consensys for allegedly operating as an unregistered broker and facilitating the sale of securities through its MetaMask Swaps and MetaMask Staking services. MetaMask Swaps, which is MetaMask’s native DEX aggregator, allows users to swap tokens directly within their MetaMask wallet. The lawsuit mentions MetaMask’s 0.875% swap fee, which has generated $250 million in revenue for Consensys. The SEC claims that the Lido and Rocket Pool staking products, available through the MetaMask Staking portal, are securities. The lawsuit seeks civil penalties and demands that Consensys permanently cease offering the services. Previously, the SEC had subpoenaed Consensys and issued a Wells notice. Consensys and Coinbase are also suing the SEC for regulatory overreach.

Arbitrum Proposes To Implement Timeboost

Arbitrum released a proposal to implement Timeboost, a new transaction ordering policy, on Arbitrum One and Arbitrum Nova. Timeboost allows users to optionally pay a fee for priority block inclusion while mitigating the impact of MEV. The policy uses an encrypted mempool, ensuring that transaction details remain hidden until the transaction order is finalized. Implementing Timeboost will help users capitalize on arbitrage opportunities. The Arbitrum DAO will vote on Timeboost's configuration settings, which include options for adding a slight execution delay, choosing between ETH or ARB for fee payments, and deciding whether to burn the proceeds. Following a successful governance vote, Arbitrum will launch Timeboost on testnet.

EigenLayer Proposes Uniswap V4 AVS

EigenLayer introduced Request for AVS, a new proposal series designed to show potential applications and inspire projects to build on EigenLayer. The initial proposal requests for the creation of a Uniswap V4 AVS for operating an offchain matching engine, batching transactions, and facilitating access to real-world data. An EigenLayer AVS provides trustless offchain compute, reducing gas fees and enhancing the user and liquidity provider experience. A Uniswap V4 AVS can resolve issues around the coincidence of wants, dynamic fees during high volatility, LP position rebalancing, and maintaining a shared state across chains.

Igloo Acquires Frame L2

Igloo, the parent company of the Pudgy Penguins NFT, acquired Frame, an NFT-focused rollup. Initially, Frame was set to be built on the Arbitrum Nitro Stack. However, the project will now transition to contributing to Abstract, a consumer-focused rollup built on the ZK stack with EigenDA for data availability. The project announced that users who had claimed its yet-to-be-launched FRAME governance token will instead receive their rewards in Abstract’s native system.

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