• Circle proposal for Aave.

• Road to Devcon 8 grants.

• Fluid aWETH redemptions on L2.

• Shutter DAO funding model.

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Circle proposes raising USDC borrowing rates on Aave to ease liquidity stress after the KelpDAO exploit pushed utilization to 100%. The plan aims to attract deposits but faces criticism over liquidation risks and Circle’s reluctance to inject liquidity. Read more →

The Ethereum Foundation launched a grant program to fund regional events ahead of Devcon 8 in Mumbai (Nov 2026), with support for meetups, workshops, and discounted tickets for students and academics. Read more →

Fluid expanded its aWETH redemption tool to Arbitrum and Base, enabling users to swap aWETH collateral for wstETH or weETH. The protocol has already processed $400m in volume on Ethereum, helping unwind looped Aave positions. Read more →

Shutter Network introduced PEN, a DAO funding model using a perpetual endowment to generate yield for governance spending, featuring non-transferable voting seats and a dual-vault treasury system. Read more →

• Besu 26.4.0 release

• 200 ETH Security badges issued

• Growthepie app upgrade

• Catalysis live on Ethereum

• Grantr prototype for EIP-8141 frames.

• Dan Finlay leaves Consensys

• Base Kipseli propAMM bug

• Polymarket hair dryer manipulation

• Justin Sun sues WLFI

Disclaimer: Content is for informational purposes only, not endorsement or investment advice. The accuracy of information is not guaranteed.

Fluid extended its aWETH Redemption Protocol to L2 networks, launching first on Arbitrum and Base. The solution allows Aave users to swap their frozen aWETH collateral for wstETH or weETH, for a fee of roughly 2%. On Ethereum mainnet alone, the protocol has already facilitated $400 million in aWETH redemptions.

The service helps protocols unwind looped Aave positions more efficiently. It works by pairing protocols running looping strategies with WETH lenders on Aave. Initial liquidity was absorbed within hours of launch, and the pool is expected to be replenished. EtherFi also launched an aWETH redemption tool for Ethereum mainnet.

EarnUSD is a stablecoin vault by Lido for earning transparent, onchain USD-denominated rewards. Get started today at stake.lido.fi/earn

Disclaimer: Content is for informational purposes only, not endorsement or investment advice. The accuracy of information is not guaranteed.

Circle's Chief Economist Gordon Liao has published an Aave governance proposal to raise the interest rate slope on the USDC market on Aave v3 Ethereum Core from 10% to 40% initially, with a target of 50%. He believes that higher rates will attract new USDC liquidity providers in an effort to bring utilization back down. The proposal comes in response to the KelpDAO exploit, which has driven the USDC lending market on Aave to 100% utilization for the last four days, leaving lenders unable to withdraw their funds due to insufficient liquidity.

As the proposal notes, debt repayments are being immediately absorbed by a queued withdrawal backlog. The proposal faced community pushback as raising the rate slope can accelerate harm. Higher rates risk triggering liquidations for borrowers who are already trapped. Liquidity providers are reluctant to deposit due to the current uncertainty around a potential lender haircut.

Circle has also faced broader criticism for not offering to inject liquidity directly into its own asset pool as the issuer of USDC. Earlier this month, Circle failed to freeze USDC connected to the DPRK in the Drift Protocol exploit.

EarnUSD is a stablecoin vault by Lido for earning transparent, onchain USD-denominated rewards. Get started today at stake.lido.fi/earn

Disclaimer: Content is for informational purposes only, not endorsement or investment advice. The accuracy of information is not guaranteed.