Celo L2 Goes Live
Celo successfully migrated from an EVM-compatible Layer 1 to an OP Stack Layer 2.
Quick Take
Celo migrates to an L2.
Custodia Bank issues a USD stablecoin.
World Liberty Financial announces USD1.
Shape L2 pledges 1% to Protocol Guild.
Abracadabra suffers $13m exploit.
Celo L2 Goes Live
Celo L2 is now live on mainnet! The network has successfully migrated from an EVM-compatible Layer 1 to an OP Stack Layer 2 at block 31,056,500. The upgrade reduces block times from 5 seconds to just 1 second, enabling faster transactions while preserving all historical transactions from its Layer 1 network. With the transition, Celo brings its DeFi infrastructure, stablecoins, and over $70 million in TVL to the Superchain. Entering a new growth era, Celo aims to build an inclusive and efficient onchain economy, further scaling Ethereum for real-world use cases. Celo was originally launched on Earth Day 2020 as a Proof-of-Stake Layer 1.
Custodia Bank Issues USD Stablecoin
Custodia Bank, in collaboration with Vantage Bank, has issued the Avit stablecoin on Ethereum, making it the first U.S. bank-issued, dollar-pegged stablecoin. Custodia successfully issued, transfered, and redeemed Avit stablecoins on Ethereum mainnet for a bank customer. Avit is issued as an ERC-20 token on Ethereum. Custodia Bank manages issuance, custody, and monitoring, while Vantage Bank manages fiat reserves and payments. The initiative underscores the growing interest of traditional financial institutions in leveraging permissionless blockchains for tokenization while maintaining regulatory compliance.
World Liberty Financial USD1 Stablecoin
World Liberty Financial, a DeFi platform on Ethereum backed by Donald Trump, announced plans to launch USD1, a stablecoin pegged 1:1 to the US dollar that will be backed by short-term US treasuries, cash deposits, and equivalents. USD1 will initially be available on Ethereum mainnet and Binance Smart Chain (BSC). BitGo will serve as the custodian for USD1. World Liberty Financial says USD1 avoids complex yield-generating mechanisms, prioritizing transparency and security for institutional adoption.
Shape L2 Pledges 1% To Protocol Guild
Shape L2 is now the latest project to make the Protocol Guild pledge, allocating 1% of its total token supply to the guild. Shape is also hosting the "Infinite Garden" NFT mint, with 50% of the proceeds allocated to the Protocol Guild. The Protocol Guild is a collective of 191 members that contribute to Ethereum protocol development. The registry of members is fully onchain and donations are paid out based on contributions and time contributing. The pledge aims to address the opportunity cost of working on Ethereum L1 by providing core devs the potential upside of a token allocation from early Ethereum projects.
Abracadabra Suffers $13 Million Exploit
Abracadabra, a DeFi lending protocol behind the MIM stablecoin, suffered an exploit, resulting in a loss of approximately $13 million worth of ETH. The protocol allows users to deposit interest-bearing tokens, like magicGLP, as collateral to borrow MIM. The attack targeted Abracadabra’s “gmCauldrons,” an isolated lending market that enables users to borrow MIM. GMX confirmed that its GMX contracts were unaffected, as the vulnerability was confined to Abracadabra’s integration with GMX pools.
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