Jake Craven

@dcfgod is right! rsETH exploit forensics. Live on-chain. 1/ Attacker wallet: 0x1F4C1c2e610f089D6914c4448E6F21Cb0db3adeF @aave V3 supply ladder, one wallet: 1 → 400 → 5,000 → 20,000 → 27,999 rsETH. Textbook test-then-scale. Probe with 1 token, ramp each time the prior clears. 53,400 rsETH from this wallet. ~$134M. Cluster total: ~116,500 rsETH. ~$290M. 2/ Aave V3 ETH reserve, live: Supplied: 2.71M WETH ($6.37B) Borrowed: 2.71M WETH ($6.37B) Utilization: 100% Supply APY: 7.36% Borrow APY: 8.71% That is the bank run. WETH suppliers are locked. Withdrawals blocked, as first flagged by @Marczeller. 3/ The mechanic. Attacker drained rsETH (OFT bridge vector, per initial reports). Supplied it as collateral on Aave V3 mainnet. Borrowed max WETH up to liquidation threshold. Walked. Kelp paused redemptions. Secondary rsETH liquidity cracked. Aave oracle still marks near peg. Liquidators cannot close the position at mark. The gap becomes bad debt on the WETH reserve. 4/ Loss waterfall. a. Umbrella. First live stress test of the Q4 2025 replacement for Safety Module. Will it fully slash aWETH stakers to cover the deficit? b. Residual haircut flows pro-rata to remaining WETH suppliers. c. Kelp mainnet rsETH holders are intact. Native ETH backing untouched, circulating supply unchanged. This is not a Kelp mint exploit. It is a bridge theft that became an Aave bad debt via instant cash-out. 5/ The primitive lesson. Listing an LRT, or any bridged derivative, as collateral means underwriting the entire upstream dependency stack: - Bridge config and security (@LayerZero_Core OFT here) - Mint and burn permissions - Oracle feeds and redemption mechanics - Fee contracts and wrapper logic Any single point of failure upstream becomes WETH bad debt downstream. @StaniKulechov, this is a listing-authority problem more than a token problem. If the stack cannot be fully priced and simulated, do not list it.

Many people across CT saw the big @Canton headlines like Nasdaq, Visa, DTCC, HSBC and more, and immediately jumped to the same old “corpchain/permissioned chain” takes. But look closer. A vibrant permissionless DeFi ecosystem is already taking shape across the ecosystem: • DEXs: @temple_ny @tradecraftfi @Cantex_io @Kora_Protocol • Prediction markets: @UnhedgedHQ + more coming • Lending/Borrowing: @acme_markets @HelloMoon_io @mystic_finance + more coming • BTC assets: @BitSafe_Finance @SolvProtocol @Lombard_Finance • Native Wallets: @Send, @FiveNorthHQ Loop, @bronwallet, @cantor8 C8 • Stablecoins: USDCx @circle + USDT0 @tether & USD1 @worldlibertyfi coming soon • Perps & vaults: coming soon • Major cross-chain protocols are planning native Canton integrations or exploring @zenithfdn_old for EVM/SVM solutions & @LayerZero_Core @chainlink @KaikoData for interop/oracles. Canton gives builders choice. Privacy where needed, transparency where wanted. The real world isn’t homogeneous; neither should crypto. The “permissioned vs permissionless” debate is outdated. A platform that minimizes trade-offs unlocks real innovation and value. And it’s already happening across the Canton ecosystem. As a quick reminder take a look at the ecosystem below, these are REAL partners. We are just getting started. @CantonFdn

BREAKING: CLAUDE CODE'S @bcherny ANNOUNCES "STARTING TOMORROW AT 12PM PT, CLAUDE SUBSCRIPTIONS WILL NO LONGER COVER USAGE ON THIRD-PARTY TOOLS LIKE OPENCLAW"

This week's Wire Incubator Guest Spotlight goes to @Craven_JE ! Jake Craven is a Token Product Manager at Denarii Labs, where he works closely with portfolio companies and accelerator cohorts to design and refine their tokenomics. As a Founder, Product Manager and Attorney, his background spans early-stage startups, venture, and the DeFi trenches — giving him a practical, builder-first perspective that resonates with the founders he supports. At Denarii Labs, Jake bridges the gap between big-picture token strategy and the hands-on execution that gets projects launch-ready. Tune in Thursday at 2pm to catch him on the Wire Incubator!