• EF launches a $1m audit subsidy.

• Polygon launches the sPOL LST.

• CoW Swap suffers a DNS hijack.

• Lattice shuts down Redstone L2.

[

Listen to this episode from Ethereum News on Spotify. The Ethereum Foundation launches a $1m audit subsidy program. Polygon launches the sPOL LST. CoW Swap suffers a DNS hijack. Lattice shuts down its Redstone L2. Read more: https://ethdaily.io/925 Sponsor: Lido Earn lets you deploy ETH or stablecoins into curated DeFi strategies for optimised yield.

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The Ethereum Foundation, Chainlink Labs, and Nethermind launched the Ethereum Security Subsidy Program, a joint initiative providing $1 million in audit subsidies for Ethereum builders. The program aims to make high-quality smart contract audits more accessible, helping strengthen security in the Ethereum ecosystem. Builders can now apply for subsidies covering up to 30% of audit costs through the Areta marketplace, with access to over 20 leading audit providers. Applications are reviewed monthly by an Expert Committee based on criteria such as technical quality, ecosystem impact, and alignment with Ethereum's core principles.

Polygon Labs launched its native liquid staking token, sPOL, enabling POL stakers to unlock liquidity while continuing to earn rewards. With over 3.6 billion POL currently staked on the Polygon PoS network, sPOL allows users to participate in DeFi, in liquidity provision, or as collateral, without unstaking. sPOL is a value-accruing ERC-20 token that starts at a 1:1 ratio with POL and increases in value over time as staking rewards accumulate. Built and audited by Polygon Labs, sPOL launched with up to 100 million POL in liquidity support. The launch aims to make POL staking more efficient and attractive to Polygon users.

MEV-protecting DEX aggregator CoW Swap suffered a DNS hijacking at 14:54 UTC on Tuesday, affecting the front end of its cow.fi website. Users are advised to avoid the website and revoke any token approvals. An attacker took control of the domain's nameservers, redirecting traffic to a malicious site that prompted users to approve transactions to a malicious contract. The affected domain has since been locked and taken offline, with recovery efforts underway. To keep the protocol accessible, the team has launched a temporary alternative on cow.finance, though users are urged to remain highly cautious. Frax Finance CEO Sam Kazemian recommended that crypto projects consider using MarkMonitor for DNS management to prevent hijacks

Lattice, the gaming studio behind the Redstone L2 network built on the OP Stack, announced it is shutting down. Its blockchain infrastructure will go offline on May 15, 2026, and users are advised to withdraw funds beforehand, as assets in smart contracts will become unrecoverable after the shutdown. The company cited financial sustainability as the reason for the wind-down. Lattice is open-sourcing its core tools, including its MUD framework for building onchain games.

• Zerion post-mortem

• Etherscan adds EFP card

• Enterprise Onchain weekly

• Base referral rewards

• DeFi Markets update

• EtherFi brings 17.5k users to OP

• ZERѲ Network maintenance

• EigenCloud introduces skills

• New KPK markets

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

• SEC guidance on DeFi front ends.

• Scroll to dissolve its security council.

• Dappnode reduces smooth pool fee.

• Bitmine holds 4% of the ETH supply.

[

Listen to this episode from Ethereum News on Spotify. The SEC issues guidance on DeFi front ends. Scroll seeks to dissolve its security council. Dappnode reduces its smooth pool fee. And Bitmine now holds 4% of the ETH supply. Read more: https://ethdaily.io/924 Sponsor: Lido Earn lets you deploy ETH or stablecoins into curated DeFi strategies for optimised yield.

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The SEC published a staff statement clarifying that certain crypto front-end interfaces do not need to register as broker-dealers under the Securities Exchange Act. The staff says it will not object to DeFi providers operating without registration if they function strictly as neutral tools rather than intermediaries. The guidance applies to "covered user interface" providers that do not offer advice, do not handle user funds or execute transactions, and present market data and routing options based on objective, pre-disclosed criteria. Front-end fees must also be fixed and paid solely by the user. The guidance is also temporary, set to expire in April 2031.

Scroll, an EVM-equivalent ZK rollup, proposed dissolving its 12-member Security Council and shifting protocol control to a Scroll Admin multisig. Notably, the team aims to make the change within 10 days. According to L2Beat researcher donnoh.eth, the change would downgrade the network from Stage 1 to Stage 0 decentralization. Scroll cited high operational costs as the main reason, aiming to streamline governance and redirect resources toward product growth. Scroll is also cutting several DAO contributor roles, including marketing, program coordination, and accountability positions. The proposal comes amid the recent departure of EtherFi to OP Mainnet.

Dappnode reduced the fee for Smooth, its MEV smoothing pool for solo Ethereum stakers, from 7% to 5%. Smooth enables stakers to pool and share execution layer rewards, like MEV and block rewards, smoothing out the typically uneven payouts and improving overall returns. TheDAO Fund also committed 69,420 ETH to the pool, helping deliver consistent rewards for solo stakers. Despite a decline in MEV opportunities, Smooth still outperformed solo staking by ~78% over the past year in terms of execution rewards.

Bitmine Immersion Technologies Inc. digital asset treasury now holds 4% of the total Ethereum supply. The 4,874,858 ETH holdings are valued at over $11.4 billion. BitMine continues its accumulation strategy, progressing toward its long-term goal of owning 5% of the total ETH supply, roughly 6 million ETH. Corporate treasuries collectively hold more ETH than Ether ETFs.

• Ethereum hits 3.6m daily txs

• Shielded BOLD through RailGun

• Aave v4 hits $20m TVL

• Kraken security update

• Clanker Ecosystem Fund

• Reah introduces neobank

• Hyperbridge DOT exploit

• Dango $1.9m exploit

• WLFI threatens to sue Justin Sun

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

• Scroll overcharges users.

• WLFI borrowing strains Dolomite.

• Redirecting staking rewards to builders.

• Zerion temporarily disables its web app.

[

Listen to this episode from Ethereum News on Spotify. Scroll overcharges its users for transaction fees. WLFI borrowing strains Dolomite liquidity. A new proposal aims to redirect staking rewards to builders. And Zerion temporarily disables its web app. Read more: https://ethdaily.io/923 Sponsor: Lido Earn lets you deploy ETH or stablecoins into curated DeFi strategies for optimised yield.

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Scroll, an EVM-equivalent ZK rollup, manually increased its fee scalars by up to 1,280x, leading to significant overcharging its users for transaction fees. According to L2BEAT, it resulted in over $50,000 in excess fees charged. The scalars control how much users pay for L1 data, but fees were far higher than the underlying costs. Engineers from Succinct reported paying over $20 per transaction on the L2 network. The inflated fees coincided with ether.fi migrating its credit card infrastructure from Scroll to OP Mainnet. Although Scroll later reduced the scalars by 160x, fees still remain about 8x above baseline without a clear reason and no response from the Scroll team.

World Liberty Financial, an Ethereum-based DeFi platform by Donald Trump, deposited 5 billion WLFI tokens from its treasury as collateral to borrow $75 million, comprising $65 million in USD1 and $10 million in USDC, via the Dolomite lending protocol on Ethereum mainnet. Notably, Dolomite co-founder Corey Caplan is an adviser to World Liberty Financial, raising conflict-of-interest concerns. The large collateral deposits have driven utilization rates on Dolomite to peak levels, leaving many stablecoin depositors unable to withdraw their assets. Utilization has exceeded 80% in the USD1 pool and 90% in the USDC pool. Since WLFI has thin liquidity, a potential liquidation could result in bad debt for Dolomite and losses for regular depositors. World Liberty Financial has already transferred $40 million to Coinbase Prime, likely for off-ramping.

Ethereum Foundation public goods researcher Devansh Mehta proposed an in-protocol mechanism to redirect a portion of Ethereum staking rewards toward funding developer teams that improve the operator experience. The aim is to trade slightly lower validator yields for a stronger ecosystem and higher long-term ETH value. The proposal would be introduced in a hard fork and coordinated through the Ethereum Validators Association. Validators would signal their gas capacity, the share of rewards they're willing to redirect, and their preferred funding recipients. If a majority supports a redirect, the same contribution would be applied across all validators.

Zerion, a leading portfolio tracker and wallet provider, is advising users to temporarily avoid its web app while it investigates suspicious activity. As a precaution, it has taken the web app offline and blocked access using Blockaid to mitigate risk. Zerion confirmed that user funds remain safe, with only the web app affected. The iOS and Android apps, as well as the browser extension, continue to operate securely. Zerion later stated the attack is contained.

• Ethereal news weekly #19

• Ethereum Checkpoint #9

• TheDAO Round Operators

• Aave increases V4 deposit caps

• Steakhouse DNS Attack update

• Silo x Sonic oracles going offline

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