circuit

Andre Cronje stated in an interview with Cointelegraph that many DeFi protocols today are "no longer truly DeFi" and are more like "profit-driven companies operated by teams," as they generally rely on upgradable contracts, multi-signatures, off-chain infrastructure, and manual operational control.Cronje pointed out that the current industry is still overly focused on smart contract audits while neglecting operational risks that are closer to traditional finance (TradFi). He believes that recent attack incidents are not due to code vulnerabilities but stem from off-chain infrastructure, permission management, and social engineering attacks.The discussion arises from the recent frequent security incidents in DeFi. In April, protocols such as Flying Tulip, Drift Protocol, and Kelp encountered security events, with Drift and Kelp suffering losses of approximately $280 million and $293 million, respectively.In response, Flying Tulip has introduced a "Withdrawal Circuit Breaker," which can delay or queue withdrawal requests when unusually large withdrawals occur, allowing the team about 6 hours to respond. Cronje emphasized that this mechanism does not permanently freeze withdrawals but serves as a layer of protection within the security system.However, Michael Egorov holds a cautious attitude towards this. He stated that the circuit breaker itself could also become a new point of centralized risk. If control permissions fall into the hands of an attacker, the mechanism originally intended to protect the protocol could instead be used to freeze assets or directly transfer funds.Egorov believes that the long-term direction of DeFi should be to minimize human intervention and centralized permissions as much as possible, rather than adding more layers of manual control. "The security of DeFi comes from decentralization, not more human management."

According to Cointelegraph, the decentralized finance platform Flying Tulip, founded by Andre Cronje, has launched a withdrawal circuit breaker mechanism that can delay or queue withdrawals during abnormal capital outflows to limit potential losses and buy time for the team to investigate.The operation of this mechanism varies across different products: in the Perpetual PUT product, withdrawals may be rolled back, and users will need to try again later; in ftUSD, withdrawals will enter a queue and can be claimed after a delay. Flying Tulip stated that this mechanism employs a "fail-open" design, meaning that transactions can continue to be executed even if the safety mechanism fails.

The Bank of Korea stated that after the mispayment incident at Bithumb, careful consideration should be given to introducing a "circuit breaker" mechanism in the cryptocurrency market similar to that in traditional financial markets, to address extreme market volatility and systemic risks.The Bank of Korea pointed out that as the scale of the cryptocurrency market expands and related risks increase, existing regulatory measures are insufficient to fully cover potential issues. Therefore, it is necessary to study the introduction of protective mechanisms that can automatically interrupt trading to enhance market stability and investor protection. Previously, Bithumb experienced abnormal payments of some users' assets due to a system failure, which attracted market attention.

The Korea Exchange activated the KOSPI index circuit breaker after KOSPI 200 futures fell by 5%, and program trading was suspended for 5 minutes.

The South Korean stock market further declined, with the KOSPI index falling by 5%. The index plummeted by more than 4% on the 3rd, triggering a circuit breaker.

The U.S. Commodity Futures Trading Commission (CFTC) submitted an amicus brief to the U.S. Court of Appeals for the Ninth Circuit regarding the prediction market dispute between Crypto.com and the state of Nevada, arguing that Congress granted the CFTC "exclusive jurisdiction" over futures and related products under the Dodd-Frank Act, and that this authority also applies to event contracts.

The Lighter team announces that its perpetual and spot trading zk circuits have completed auditing and are officially open-sourced. The team has released the complete verification code, allowing external independent verification of every order, cancellation, and settlement operation of Lighter L2 on Ethereum to ensure their authenticity and validity.Developers can generate ZkLighterVerifier using build scripts from GitHub and perform consistency checks with the deployed contracts on Ethereum.

The Korea Exchange activated the circuit breaker for the KOSPI index after the Korea Composite Stock Price Index 200 futures fell by 5%, suspending program trading for 5 minutes.

ChainCatcher news reports that, according to 4E observations, the recent crash in the cryptocurrency market has exposed structural issues in exchange liquidation and risk control. Some platforms profited during extreme market conditions, while others lost hundreds of millions of dollars. Industry reports indicate that automated liquidation systems designed to provide liquidity have instead amplified market chaos during severe fluctuations, prompting institutions to reassess risk management.10x Research points out that the industry is discussing whether to adopt traditional finance's "Circuit Breakers" to limit extreme volatility. If implemented, this mechanism could permanently alter the volatility structure and profit logic of the cryptocurrency market. The report recalls that similar systemic reflections last occurred after Musk announced Tesla would stop accepting Bitcoin payments in 2021.On the macro front, Federal Reserve Chairman Powell warned in a speech early this morning that the U.S. labor market is cooling, suggesting support for another 25 basis point rate cut. He noted that "the risks to employment have increased," and even though official data is delayed due to the government shutdown, the Fed's internal research is sufficient to support a rate cut decision.As a result, the yield on 30-year U.S. Treasury bonds fell to 4.60%, hitting a new low since April.Additionally, U.S. Republican Congressman Troy Downing has proposed the "Retirement Investment Options Act," which aims to include cryptocurrencies and private equity in the investment scope of 401(k) retirement plans. This means that the executive order from the Trump era is likely to be formally enacted into law, paving the way for cryptocurrency assets to further integrate into mainstream investment channels.4E reminds investors: If the "Circuit Breaker" mechanism is officially introduced, it will mark a key step towards institutionalization and risk management in the cryptocurrency market. However, the short-term liquidity and volatility structure may undergo drastic changes, necessitating careful attention to the chain reactions of market institutional reforms.

ChainCatcher message, 10 x Research report, the recent crash in the crypto market has exposed deep-seated issues in the exchanges' clearing and risk control mechanisms. Some platforms profited from the events, while others lost hundreds of millions of dollars. The report points out that automatic clearing systems designed to provide liquidity actually amplified the chaos during extreme market conditions, prompting institutions to reassess their risk management frameworks.A new focal point of discussion is emerging in the industry—whether crypto exchanges should learn from traditional financial markets and introduce "circuit breakers" to limit extreme volatility. 10 x Research indicates that if this move is implemented, it could permanently change the volatility structure and profit logic of the crypto market. The report also reviews that after Musk announced Tesla would stop accepting Bitcoin payments in 2021, the market experienced a political backlash due to leveraged liquidations, and the far-reaching effects of this latest crash may similarly reshape the structure of the crypto market.

ChainCatcher news, according to Fortune magazine, former Stripe crypto and AI partnerships head Louis Amira and former Stripe crypto engineering head David Noël-Romas have completed a $19.2 million funding round for their new startup Circuit & Chisel, aimed at developing the AI agent payment protocol ATXP.In addition to their Stripe background (and funding support), Circuit & Chisel has also received investments from Primary Venture Partners, ParaFi, and Coinbase Ventures. The ATXP protocol is designed as the "HTTP protocol for AI agent payments," aimed at addressing the current lack of standardized communication protocols among AI agents.Amira stated that if ATXP is successful, it will revolutionize the microtransaction space. Under this scheme, agents can autonomously gather information and are entitled to make small payments, such as scraping information from private LinkedIn profiles or accessing paid articles from Fortune magazine, with these platforms also entitled to charge small fees.

ChainCatcher news, according to Jinshi reports, 36Kr's US stock fell over 16% in pre-market trading, after the stock price experienced multiple circuit breakers during the previous trading day, ultimately closing up 90%.

ChainCatcher news, according to TheBlock, the Ninth Circuit Court of Appeals has made a mixed ruling in the long-standing case between Bored Ape founder Yuga Labs and artist Ryder Ripps, who previously intentionally sold copies of NFTs as "expressive appropriation art."The court ruled that NFTs are "goods" eligible for trademark protection and dismissed many of Ripps' legal arguments, but overturned the previous $8 million judgment against Ripps and remanded the case to the lower court for further proceedings, requiring the lower court to reconsider whether RR/BAYC caused consumer confusion. The case began in June 2022, when Yuga Labs accused Ripps of damaging its brand value by issuing the RR/BAYC series of NFTs. The court rejected Ripps' defenses regarding "expressive art" and First Amendment protections, but found that further evidence was needed to prove the likelihood of consumer confusion.

ChainCatcher news, according to Jinshi reports, the Nikkei 225 index futures rose by 10% in early trading, and the Nikkei average VI futures were suspended from trading due to the triggering of the circuit breaker mechanism.

ChainCatcher news, according to Bitcoin.com, the Fifth Circuit Court of Appeals in Texas overturned the sanctions imposed on the cryptocurrency mixing platform Tornado Cash, stating that the sanctions by the Treasury Department's Office of Foreign Assets Control (OFAC) on Tornado Cash's immutable smart contracts exceeded its jurisdiction, as these smart contracts cannot be owned or controlled by any party.The court noted that Tornado Cash's immutable smart contracts do not fall under the definition of "property" in the International Emergency Economic Powers Act, as these self-executing programs operate independently and are not affected by shutdowns or modifications. The ruling also addressed the plaintiffs' defense of Tornado Cash's legitimate applications, such as ensuring financial privacy and preventing cyber threats.Legal analysts expect that this ruling will contribute to the ongoing discussions regarding cryptocurrency regulation and the governance of open-source blockchain systems.OFAC has not indicated whether it will appeal this case to the Supreme Court. Currently, the case has been returned to the district court for further proceedings based on the appellate court's ruling.

ChainCatcher news, Coinbase Chief Legal Officer Paul Grewal posted on X: "We have requested the Second Circuit Court to hear our emergency appeal. Decades of appellate precedent confirm that 'investment contracts' must contain contractual elements. The circuit court can provide much-needed guidance on this fundamental legal issue.There are many details in the document, but simply put, transactions on the Coinbase platform do not violate federal securities laws. As I have repeatedly stated, Coinbase does not list securities.Last week, the district court acknowledged that the questions we raised presented 'clear and controlling legal issues' and 'substantial reasons for disagreement.' After years of uncertainty, we finally have the opportunity to resolve this issue once and for all.This lingering issue has plagued our industry for years, limiting potential technological innovations and services that could create a fairer economic system for everyone. Clarifying the issue can propel us forward so that we can foster innovation and growth while focusing on protecting consumers."

ChainCatcher news, according to Jinshi reports, Trump Media Technology Group's stock rose by 14%, triggering a circuit breaker. After trading resumed, the increase narrowed to 8.7%, and it was suspended again.

ChainCatcher news, according to Tree News, Ripple Labs Inc. has submitted a notice of appeal to the U.S. Court of Appeals for the Second Circuit.

ChainCatcher News: The Tokyo Stock Exchange Index futures triggered the circuit breaker upwards. (Jin Shi)