In March, our community reached a major consensus on the future of Alpaca Finance with the approval of AIP-30, giving the thumbs up to our new Stablecoin proposal. The initiative will be a big step for Alpaca Finance, signaling exciting opportunities ahead.

On top of that, we’re thrilled to share that Alpaca Finance received 250,000 $PYTH (~$165k USD) through the Pyth Network Retrospective Airdrop program. We’re spreading the love by distributing 100% of these tokens to Alperp traders and Governance Vault stakers.

This month, we published four Institutional Newsletters where you can read the summary of major headlines in the crypto market related to regulation, products, and fundraising. We publish these newsletters every week. You can check out this month’s editions here: Edition 74, Edition 75, Edition 76, and Edition 77.

Read below for more details of our developments this month.

💎 AF 2.0

In March, Alpaca Finance 2.0’s Money Market generated ~$37k in interest revenue, reaching a total cumulative revenue of ~$390k.

You can monitor the AF2.0 Money Market through our Dune page here.

Easter Day 2024

To celebrate Easter Day 2024, the exclusive Easter Day 2024 NFT was given to all users depositing any amount of any token in Alpaca Finance 2.0 by April 2nd, 2024. You can check your eligibility here .

📈 Perpetual Futures Exchange

In March, Alperp generated ~$72k in protocol revenue, which is almost 3 times from the previous months, with a trading volume of over $27 million, reaching a cumulative trading volume of $559 million since launch.

Alpaca Finance has been chosen as a recipient of Pyth Network Retrospective Airdrop Campaign. We’re thrilled to share that we’ll be distributing the reward of 200,000 PYTH (~$132k USD) as a trading fee rebate to our Alperp traders starting from 14th March to 23rd May (or longer if rewards are rolled over). For detailed information, please visit here.

You can always check our in-house Stats page to see Alperp’s performance and can also download the data here.

🔥 ALPACA Buyback&Burn

Each week, we share our revenue and ALPACA burn statistics on X (previously Twitter). In March, 168,440 ALPACA (~$39,000) was burned over 5 weeks. The total cumulative burn is now ~33.7 million ALPACA (17.94% of total supply).

ALPACA has been deflationary for 110 of the last 117 weeks. As per the ALPACA emissions schedule, the ALPACA token is now guaranteed to be fully deflationary as ALPACA emissions & rewards are now officially finished. We added extensive details on burn and various sources of burn on our Docs here. On top of that, we hope to again refer our readers to this article by a community member, explaining ALPACA’s deflationary nature and how it will lead to a natural rise of the ALPACA token’s price over time.

🗽 Alpaca Governance

Any user can stake ALPACA in the Governance Vault to (1)earn a share of our platform’s revenue, (2)get Grazing Range rewards, and (3)receive xALPACA to vote on Alpaca Improvement Proposals (AIPs).

In total, 23.7% of circulating ALPACA has been locked, and we have paid over >$4.1 Mn to ALPACA governance stakers. Read all about Alpaca Governance in our Part 1 and Part 2 Medium articles or visit our docs’ Governance section.

As mentioned earlier, we will distribute 50,000 $PYTH (~$33k USD) from Pyth Network Airdrop Campaign as rewards to Governance Vault stakers starting from 14th March to 9th May. For further details, please refer to this link.

Our Discord has a private channel for xALPACA holders where governance members can discuss topics and discover/share alpha. There is a bot automating membership and the minimum required to gain entry is 100 xALPACA in a wallet. From time to time, we do special airdrops from partners (i.e. NFTs) in this channel to xALPACA holders and also Alpies holders (in their respective private channels). You can also bring up any Governance topics for discussion in our Forum.

Alpaca Improvement Proposals (AIPs):

AIP-30 voting has successfully passed. The community voted to approve New Product Proposal — Stablecoin on Stacks.

For those who participated in voting, the NFT for AIP-30 is now available to claim on Galxe. Visit our Governance Forum to read about, discuss, and vote on these AIPs.

📰 Other News

In March, Notum, an all-in-one DeFi investment hub, integrated Alpaca Finance into their platform — https://twitter.com/NotumDefi/status/1763399211536838965

Feedback

We greatly value our users’ feedback, which you can give at: https://docs.google.com/forms/d/1QGY4wJUvYdYWe6TQn460m0A7H07xMUcBGEnU-pUXyg4/viewform?ts=61e8ce4e&edit_requested=true

Next Steps

We will continue to build. The upcoming updates that you can look forward to include news on the new stablecoin product and Alpaca Gaming.

We announce updates on our Twitter first, so follow us to be the first to know!

March 2024 Recap was originally published in Alpaca Finance on Medium, where people are continuing the conversation by highlighting and responding to this story.

Highlights

Court Allows SEC to Advance Lawsuit Against Coinbase Over Unregistered Operations

BlackRock Launches Ethereum-Based Tokenized Fund, Attracting $240 Million in a Week

MiCA Regulation to Reshape European Stablecoin Market

A U.S. District Court, under Judge Katherine Failla, has rejected Coinbase’s motion to dismiss the lawsuit filed by the Securities and Exchange Commission (SEC), effectively allowing the regulatory body to continue its legal battle against the cryptocurrency exchange. The SEC’s lawsuit, initiated in June 2023, accuses Coinbase of operating without proper registration, functioning as an unregistered exchange, broker, and clearing agency, particularly through its Staking Program. The court’s decision underscores the SEC’s argument that Coinbase’s platform facilitates transactions that could be classified as “investment contracts” and, therefore, securities under federal laws. This pivotal ruling emphasizes the ongoing regulatory scrutiny over cryptocurrency exchanges and the broader digital asset industry, setting a significant precedent for the interpretation of securities laws in the context of emerging technologies.

BlackRock Inc. has launched a pioneering money-market fund named the BlackRock USD Institutional Digital Liquidity Fund, which uniquely records share ownership on the Ethereum blockchain, amassing over $240 million within its first week. The fund allows investors to receive BUIDL tokens, each valued at $1, which can be transferred between digital wallets certified by Securitize, BlackRock’s collaboration partner. This innovative approach aligns with BlackRock’s vision, articulated by CEO Larry Fink, that foresees the eventual tokenization of all financial assets. The fund targets crypto companies, including decentralized autonomous organizations (DAOs), looking to manage their treasuries through blockchain technology, offers a base for developing Treasury bill derivatives, and serves as an alternative to stablecoins for collateral purposes. Amid heightened SEC scrutiny of the Ethereum network, the fund distinguishes the utility of public blockchain infrastructure for financial innovations from regulatory debates over digital assets’ classification.

The delisting of leading stablecoins by major cryptocurrency exchanges in Europe hints at broader changes as the continent prepares for the Markets in Crypto-Assets Regulation (MiCA) coming into effect at the end of June. This landmark regulatory framework, primarily impacting non-European stablecoin issuers, mandates stringent compliance, including the requirement for issuers to be established and authorized within the European Economic Area (EEA). The move aims to create a safer ecosystem for stablecoin issuers and users, with expectations of a market shift and potentially new entrants from traditional banking and fintech. The regulation introduces challenges, particularly for offshore issuers, necessitating 1:1 reserves, permanent redemption rights, and, for significant issuers, additional equity against potential losses. Despite potential short-term disruptions, notably for popular stablecoins like Tether, the long-term outlook is positive with improved investor confidence and market integrity. MiCA is seen not just as a regulatory standard but as an opportunity for innovation and growth in the stablecoin sector within a more regulated, stable framework.

News

SEC can proceed with Coinbase lawsuit: Court ruling

Sam Bankman-Fried gets 25 years — What happens now?

Dutch Prosecutors Seek 64-Month Jail Sentence for Tornado Cash Dev Alexey Pertsev

UK court freezes over $8M of Craig Wright’s assets

Products

BlackRock’s Tokenized Fund Draws $240 Million Since Debut

Fetch.ai, Singularitynet and Ocean Protocol Unite to Create the Superintelligence Alliance

Web3 dev platform Mirror World launches first gaming rollup chain on Solana

Solana Shooter ‘Nyan Heroes’ Boosts Airdrop Rewards in Epic Games Demo

Regulation

Stablecoin delistings in Europe spell change for crypto exchanges, issuers

US charges KuCoin crypto exchange with anti-money laundering failures

US and UK Probe $20 Billion of Crypto Transfers to Russian Exchange

US court favors Fed in Custodia Bank case, rejects appeal for review

Funding

Marc Andreessen, Galaxy Digital Back $75 Million Crypto VC Fund

What’s Next for Ethereum NFT Game ‘Parallel’ and Solana’s ‘Colony’ After $35 Million Raise

Layer-1 Blockchain Peaq Raises $15M to Expand Its DePIN Ecosystem

Indonesian NFT ‘selfie guy’ makes $1.8M in memecoin comeback

Follow this medium account to get notified when we release more of this newsletter. To learn more about Alpaca Finance, you can visit our official communication channels:

Website · Telegram · Twitter · Discord

Alpaca Finance Institutional Newsletter #78 was originally published in Alpaca Finance on Medium, where people are continuing the conversation by highlighting and responding to this story.

The Ethereum Foundation Faces Regulatory Scrutiny Amid SEC Investigation

BlackRock Initiates Asset Tokenization to Advance Financial Infrastructure

EU Committees Greenlight Ban on Anonymous Crypto Transactions, Tightening AML Regulations

The Ethereum Foundation, central to the Ethereum ecosystem, is under the lens of an unnamed state authority, as revealed through its GitHub repository. This inquiry coincides with pivotal changes in Ethereum’s technology and the potential reclassification of its native asset, ETH, as a security by the Securities and Exchange Commission (SEC). Fortune’s report indicating the SEC’s move to classify ETH as a security has stirred significant implications for Ethereum and the broader crypto landscape. Investigative subpoenas sent to U.S. companies underscore the depth of the inquiry, though its exact focus remains undisclosed. The removal of disclosure statements and a warrant canary from the Ethereum Foundation’s website further heightens concerns. Analysts speculate on the SEC’s stance regarding Ether ETF applications, with skepticism prevailing amid a perceived lack of engagement between applicants and regulatory officials.

BlackRock, the world’s largest asset manager, has signaled a significant move towards financial innovation with the filing of the BlackRock USD Institutional Digital Liquidity Fund with the United States Securities and Exchange Commission (SEC). The fund, set to be tokenized on the Ethereum blockchain under the ticker BUIDL, represents BlackRock’s inaugural foray into tokenized asset funds. CEO Larry Fink underscores the transformative potential of asset tokenization, emphasizing its role in streamlining financial processes, enhancing transparency, and combating illicit activities. Partnering with Securitize, a U.S. digital assets securities firm, BlackRock aims to pioneer a new era of instantaneous settlement and heightened accessibility to traditional financial instruments through blockchain technology.

A significant development emerges from the European Parliament as a majority of its lead committees endorse a ban on cryptocurrency transactions via hosted wallets, as part of expanded Anti-Money Laundering (AML) and Counter-Terrorist Financing laws. This move, ratified on March 19, signals a broader regulatory framework encompassing the cryptocurrency market. Notably, the ban targets transactions conducted through third-party custodial wallets, affecting centralized exchanges. The legislation also imposes restrictions on cash transactions, with anonymous payments exceeding 3,000 euros in commercial transactions and 10,000 euros in business transactions prohibited. While proponents argue for enhanced financial transparency, dissenters like Patrick Breyer stress concerns over compromised economic independence and privacy infringement. The crypto community remains divided, with some advocating for necessary safeguards while others fear potential constraints on economic activity and privacy rights within the EU.

News

Ethereum Foundation Faces Inquiry From a Government; Fortune Says SEC Investigating ETH

Celsius seeks to claw back $2B in customer withdrawals: Report

‘Unpatchable’ flaw in Apple M-series chip may allow access to encrypted data

Binance offers $5M reward for insider trading tip-offs

Products

BlackRock begins asset tokenization with launch of digital liquidity fund $BUIDL

Robinhood launches crypto wallet for Android users

Worldcoin makes Orb software open-source, implements ‘personal custody’

Southeast Asia super-app Grab offers crypto payment options in Singapore

Regulation

EU committees approve ban on anonymous crypto transactions via hosted wallets

SEC hit with sanctions for its ‘gross abuse of power’ in Debt Box case

SEC pushes back decision on Grayscale Ether futures ETF

WisdomTree wins NYDFS trust company charter

Funding

Anthropic weighs slate of sovereign wealth funds to acquire FTX’s $1 bln stake, CNBC reports

Crypto Fund Hack VC Looks to Raise Even More Capital for Seed Stage Digital-Asset Bets

Crypto Compliance Platform Keyring Raises $6M to Unlock DeFi for Institutions

Web 3 Startup Tensorplex Labs Raises $3M Seed Funding to Decentralize AI

Follow this medium account to get notified when we release more of this newsletter. To learn more about Alpaca Finance, you can visit our official communication channels:

Website · Telegram · Twitter · Discord

Highlights was originally published in Alpaca Finance on Medium, where people are continuing the conversation by highlighting and responding to this story.

Highlights

Ethereum’s Dencun Upgrade: A Leap Toward Scalability and Lower Fees

PancakeSwap Unveils Version 4: Custom Pools and Gas Efficiency

Coinbase Follows MicroStrategy’s Playbook with $1 Billion Convertible Debt Offering Amid Crypto Surge

The much-anticipated Dencun upgrade has finally gone live on the Ethereum mainnet, marking a significant milestone since the Merge. Expected to alleviate the soaring transaction fees of layer-2 networks and bolster Ethereum’s scalability, Dencun incorporates nine Ethereum Improvement Proposals (EIPs) and introduces features like data blobs through EIP-4844. However, while it promises advancements, experts caution that Ethereum’s mainnet users won’t immediately benefit from fee reductions, emphasizing the ongoing evolution of layer-2 solutions and Ethereum’s position as a preferred platform for high-value transactions.

PancakeSwap, one of the leading decentralized exchanges, has unveiled its version four codebase, set to launch on Ethereum and BNB networks in the third quarter of 2024. This new iteration introduces advanced features such as custom liquidity pools and flash accounting, aimed at reducing gas costs for users and minimizing impermanent loss for liquidity providers. Additionally, PancakeSwap’s integration of “hooks” allows for customizable add-ons by independent developers, fostering innovation within the DeFi ecosystem. With a commitment to open-source development and a $500,000 developer program, PancakeSwap continues to help advance decentralized finance, competing in a rapidly evolving landscape alongside other major players like Uniswap.

In a strategic move to capitalize on the surging digital asset market, Coinbase, the sole publicly traded cryptocurrency exchange in the U.S., announced plans to raise $1 billion through a private offering of convertible senior notes. Emulating Michael Saylor’s MicroStrategy, Coinbase aims to avoid stock dilution while funding its crypto ventures. The offering, with a conversion option set for 2030, seeks to safeguard existing shareholder interests. Uniquely, Coinbase includes “negotiated capped call transactions” to mitigate potential dilution during conversion, a step not taken in MicroStrategy’s recent dealings. As Bitcoin hits record highs, driving Coinbase’s stock up by 48%, the move underscores the growing convergence of traditional finance and the crypto ecosystem, as Wall Street analysts revise their outlook on Coinbase’s stock amidst the digital asset market’s meteoric rise.

News

Dencun upgrade goes live on Ethereum mainnet

Judge rules Craig Wright is not Satoshi Nakamoto: Report

Hong Kong regulator lists Bybit as ‘suspicious’ crypto trading platform in latest alert

Peter Schiff, who once called Bitcoin a ‘pure ponzi,’ now wishes he bought some

Products

PancakeSwap announces v4 with custom pools and gas optimization

BNB Chain to expand layer-2 ecosystem with new rollup service

Social crypto exchange Dyor unlocks the door for everyday investors

AI-powered game brings ‘Waifus’ to life with plans for AR/VR experience

Regulation

El Salvador drops income tax for foreign investments and remittances

Senators pressure SEC’s Gensler not to approve any more crypto ETFs

UK FCA approves crypto investment products, but there’s a catch

USPTO study finds current laws fit for NFT market challenges

Funding

Coinbase Plans $1B Bond Sale That Avoids Hurting Stock Investors, Copying Michael Saylor’s Successful Bitcoin Playbook

Crypto’s Berachain Becomes Unicorn in $69 Million Funding Round

Marathon to purchase 200MW Bitcoin mining center from Applied Digital for $87.3M

Crypto News Site The Block Bought by Foresight Ventures in $70M Deal

Follow this medium account to get notified when we release more of this newsletter. To learn more about Alpaca Finance, you can visit our official communication channels:

Website · Telegram · Twitter · Discord

Alpaca Finance Institutional Newsletter #76 was originally published in Alpaca Finance on Medium, where people are continuing the conversation by highlighting and responding to this story.