This story was featured in Episode 498.

Obol Network released Charon v1.0, the first long-term support (LTS) version of its distributed validator (DV) middleware client for Ethereum. The release supports distributed key generation, creating only partial validator key shares for each node in a DV cluster, without ever revealing a full private key. DVs enhance Ethereum’s fault tolerance by preventing a single point of failure. The client also prevents access to validator private key shares during runtime, minimizing the risk of private key leakage. Charon is also compatible with various client combinations. Lido and EtherFi have committed to integrating Charon into their staking operations. Obol plans to release 1.0 versions of its DV Launchpad, Obol Splits, and Obol SDK.

• 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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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 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 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, 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.

• ACDC #136 recap

• IRS broker reporting rule

• Warpcast supports USDC payments

• Base implements MCP upgrade

• WalletConnect Protocol anniversary

• Superfluid introduces BORING

• Guanlet LRT risk dashboard

• Supreme Court overturns Chevron

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• ZERO Network launches on testnet.

• MegaETH raises a $20m seed.

• Stripe supports USDC on Base.

• Coinbase sues the SEC and FDIC.

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Zero Network, an EVM-compatible rollup built on ZKsync’s ZK Stack, is now live on testnet. Zero Network aims to overcome the UX barrier of gas fees by leveraging ZKsync’s native account abstraction with a custom paymaster implementation. The paymaster abstracts gas fees for users by allowing dapps to either sponsor the fees or accept fee payments in any ERC-20 token. Zerion will sponsor transactions on Zero Network executed through its mobile and browser extension wallet. Zerion also introduced Onchain DNA, a spam prevention feature to distinguish transactions between real users and bots. To incentivize dapps to deploy on its chain, Zerion is offering grants, API credits, and access to its user base. Initial protocols launching on the network include 1inch, Phi, Reservoir, Bebop, and Safe.

MegaETH, an EVM-compatible L2 blockchain, raised a $20 million seed round led by Dragonfly Capital. The round also included angel investments from Vitalik Buterin and Joseph Lubin. Coined as a Real-Time Blockchain, MegaETH claims to offer 100,000 TPS throughput,  millisecond-level latency, and high compute capacity. MegaETH settles transactions on Ethereum L1 and leverages EigenDA for data availability. The use of high-performant sequencer hardware, parallel execution engines, and optimized state access enables its scalability. MegaETH uses a sophisticated state trie design to reduce IO operations and bandwidth consumption. It also uses a multidimensional gas pricing mechanism. MegaETH is currently live on devnet with plans to launch a public testnet later this year.

Stripe is integrating support for USDC on Base to its crypto payouts product. The feature enables businesses on Stripe to pay individual recipients in crypto, starting with USDC. The service simplifies the process by managing the conversion from fiat to crypto and allows recipients to link a crypto wallet for fund transfers. Stripe is also expanding its fiat-to-crypto onramp to include USDC on Base for U.S.-based customers. As part of a collaboration, Coinbase will integrate Stripe’s fiat-to-crypto onramp into its self-custodial Coinbase Wallet.

Coinbase filed lawsuits against the SEC and the FDIC, citing a lack of transparency and accusing them of withholding public information. The lawsuits, filed under the Freedom of Information Act (FOIA), aim to attain the release of documents concerning closed SEC investigations and letters from the FDIC that advised financial institutions to pause crypto-related activities. The lawsuit targeting the SEC emphasizes the agency's inconsistent rulings and contradictory statements regarding digital assets. Coinbase is seeking to enforce its FOIA requests, aiming to hold the financial regulators accountable and push for greater regulatory clarity.

Gravita launched gravETH, its own LST derivative created in collaboration with StakeWise and NodeSet. The LST was deployed using a custom StakeWise vault that uses validators managed by solo node operators via NodeSet. NodeSet connects staking protocols to more than 250 geographically dispersed solo node operators. GravETH has a standard commission rate of 10%. Gravita plans to support gravETH as collateral on its borrowing protocol.

• Validator geographical distribution

• Aave 2030 vote goes live

• Den crypto-to-fiat Safe payments

• Lens SDK 2.3.1 release

• Retro Funding 4 voting goes live

• Fluent launches public devnet

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