• Pectra upgrade is planned for Q1 2025.

• EtherFi opens a waitlist for EtherFi Cash.

• Polymarket settles its ETH ETF prediction market.

• Arbitrum reaches one billion total transactions.

Ethereum core developers are targeting to launch Pectra, the next upgrade for Ethereum, by the end of the first quarter of 2025. The inclusion of EVM Object Format (EOF), which is a set of about 11 EIPs that introduce an opt-in container for EVM code, is a key component that is pushing the upgrade timeline to 2025. The upgrade is set to feature PeerDAS, a data availability sampling solution that uses existing peer-to-peer components within Ethereum. Developers also agreed to replace the account abstraction EIP-3074 with a newer proposal, EIP-7702, introduced by Vitalik. EIP-7702, enables EOAs to function as smart contract wallets during a transaction. Pectra consists of the Prague upgrade on the Execution Layer and the Electra upgrade on the Consensus Layer.  The final scope of the upgrade is still under discussion, with potential changes like postponing Verkle to the Osaka hardfork.

EtherFi launched its waitlist for EtherFi Cash, the third component of its suite, designed to enable users to spend and borrow against their EtherFi balances. Cash consists of a mobile wallet linked to a Visa credit card, allowing users to either borrow USDC against their EtherFi assets or convert them directly into USDC. EtherFi rewards can also be used to settle outstanding balances. EtherFi Cash aims to eliminate the need to offramp crypto for daily transactions. The Visa cards are expected to be shipped in September. EtherFi also has plans for a Layer 2 solution to enhance payment processing and dispute resolution for Cash. Currently, EtherFi is the largest liquid restaking protocol, managing over $5.5 billion in TVL.

Polymarket resolved its prediction market for the approval of an Ethereum ETF by May 31st. The resolution followed controversy stemming from the SEC's approval of multiple 19b-4 filings for Spot ETH ETFs, while the necessary Form S-1 filings required for trading remain unapproved. Some users argued that an ETF isn't fully approved until both filings are approved. UMA Protocol, an Optimistic Oracle provider, ultimately determined a "Yes" outcome based on the 19b-4 filings that were approved. Bloomberg analyst James Seyffart noted that a 19b-4 approval historically leads to S-1 approvals. The prediction market had a total of $13.2 million in bets.

Arbitrum has achieved over one billion total transactions between Arbitrum One and Arbitrum Nova. Over the past month, Arbitrum One has topped the charts in daily active addresses, recording over 3.6 million active addresses in just the last 24 hours. As the leading Layer 2 network, Arbitrum One holds $18.5 billion in TVL, capturing a 40% market share among all rollups.

• Devcon ticket sales open in June

• Kabosu (Doge) passes away

• Underrated Ethereum repos

• Proposal: Onboard Drop to Lido

• The SEC approves Spot ETH ETFs.

• Applications open for OP retro funding.

• WalletConnect introduces AppKit and WalletKit.

• Safe releases an ERC-7579 Adapter.

Harpie is an onchain security solution that protects your wallet from theft in realtime. Harpie helps you detect and block suspicious transactions before they execute, safeguarding your assets from malicious attacks and scams. Try Harpie for free at harpie.io/ethdaily.

The U.S. Securities and Exchange Commission (SEC) has granted approval for eight Spot Ethereum ETFs managed by asset managers Grayscale, Bitwise, BlackRock, VanEck, ARK Invest and 21Shares, Invesco, Fidelity, and Franklin Templeton. The ETFs will be listed for trading on NYSE Arca, Nasdaq, and Cboe BZX Exchange. However, trading will not commence immediately, as the SEC still needs to approve the S-1 forms submitted by the asset managers, a process that could take weeks to months. A spot Ethereum ETF mirrors the market price of Ethereum, offering investors a way to gain exposure to Ethereum without the need to directly hold ETH. The price of ETH has be volatile throughout the day, hitting a new monthly high of $3,937.

Optimism opened applications for its fourth retroactive funding round, coined Onchain Builders. The round will allocate 10 million OP tokens to builders who have deployed contracts on OP Stack chains, including as Base, Mode, Redstone, and Zora. The submission window is open until June 6th at 19:00 UTC, but those who apply by May 31 will receive a commemorative NFT. To qualify, the smart contracts must have interacted with a minimum of 420 unique addresses between January 1 and May 1, 2024, sustained contract activity for at least 10 days, and have verified contract ownership on GitHub. Badgeholders will vote on submissions next month, with winners to be announced on July 15th.

WalletConnect unveiled AppKit and WalletKit, its latest development kits for connecting wallets to dapps. AppKit enables developers to incorporate features such as email and social logins, onboarding with Safe-powered smart contract wallets, fiat-to-crypto onramps, and swapping functionality into their apps. WalletKit simplifies the process for developers to integrate "Connect with WalletConnect", which enables users to connect to desktop applications from their mobile wallets. WalletKit also includes one-click connections and verifications. Both kits support notifications triggered by onchain actions. The new development kits are scheduled for release on June 12th.

Safe launched an ERC-7579 Adapter, enabling the integration of modules from external platforms into Safe smart accounts. The ERC-7579 standard establishes interfaces for modules that ensure interoperability across different wallet implementations. The ERC-7579 adapter enhances wallet functionality, supporting modules such as Passkeys and Session Keys. Developers can now implement the adapter on existing Safe accounts.

• Conduit supports Arbitrum Stylus on testnet

• Lido discloses a security incident

• ClayStack winds down its LST

• Dankrad releases a disclosure page

• ACDE #188 Recap

• U.S. House approves bill to ban CBDC

• Polygon discusses L3 downsides

• Real unveils RWA-focused L2

• Introducing Shadow Reth

• The U.S. House passes FIT21 bill.

• Fluent introduces Blended Execution.

• Taiko announces its TKO airdrop.

• Pectra Devnet 0 updates.

Harpie is an onchain security solution that protects your wallet from theft in realtime. Harpie helps you detect and block suspicious transactions before they execute, safeguarding your assets from malicious attacks and scams. Try Harpie for free at harpie.io/ethdaily.

The U.S. House of Representatives passed the Financial Innovation and Technology for the 21st Century Act (FIT-21), which assigns regulatory oversight of digital asset trading to the Commodity Futures Trading Commission (CFTC) and establishes a consumer protection framework for digital assets. The bill received bipartisan support, including 71 votes from Democrats. The approval comes after the Biden Administration released a policy statement strongly opposing the bill in its current form. Despite the opposition, the administration did not indicate plans to veto the bill, suggesting that it is likely to become law.

Fluent introduced Blended Execution, a new design that integrates multiple virtual machines within a single state machine. The design enables direct interactions among apps from different VMs, eliminating the need for complex cross-chain bridging and enhancing the user experience. Developers can use the tools across each VM ecosystem. Fluent will be the first L2 network to implement a blended execution architecture. It will support Wasm, EVM, and SVM in a unified execution environment. Applications written in a variety of programming languages, including Solidity, TypeScript, and Rust, will be able to run on Fluent. The network will use an altered version of WebAssembly optimized for ZK operations.

Taiko, an EVM-equivalent ZK-Rollup, introduced its TKO governance token. Taiko will distribute 5% of its 1 billion total supply through an initial airdrop to block proposers, provers, select testnet users, GitHub contributors, and Ethereum ICO participants. Users have a seven-day window to check their eligibility and link their wallets. Once the airdrop is live, eligible users will have 30 days to claim their TKO tokens on Taiko Mainnet. Approximately 48.5% of the token supply is allocated to investors, team members, and the Taiko Foundation. An additional 10% of the supply is reserved for a future airdrop. Taiko has also dedicated 1% of its tokens to the Protocol Guild and 5% to funding for retroactive public goods.

• Nyota Interop recap (Pectra Devnet 0)

• Espresso expands testnet nodes

• Nexus adds EtherFi insurance

• Intro to EigenDA

• EVM Native Sequencing Rules

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