Headline News

The United States Court of Appeals vacated SEC’s denial of Grayscale GBTC conversion into Spot ETF. The circuit judge stated the denial of Grayscale’s proposal was arbitrary and capricious because the SEC failed to explain its different treatment of similar products (BTC Future ETF).

BTC surged immediately and closed 6.11% gain on the day.

SEC has 45 days to file for an appeal and requests for en banc hearing (hear by all 17 judges instead of the current subset panel of 3 judges). Alternatively, SEC would come up with new reason for the rejection.

Last Friday, BTC plummet 4.98% after the expected announcement from SEC delaying all 7 BTC spot ETF applications, cited: “The Commission finds it appropriate to designate a longer period within which to take action on the proposed rule change so that it has sufficient time to consider the proposed rule change and the issues raised therein.”

Macro-Outlook

JOLTs Job opening in July was 8.827million lower than expected 9.465million, while unemployment rate was 3.8% higher than expected 3.5%, set the highest rate since February 2022 with participation rate increased 20bps above expectation. It showed the lag effect has worked into the labor market. Non-farm payroll was 187K in August, higher than expected 170K while July was revised down 30K.

July Core PCE Price Index was 4.2% in line with expectation. ISM Manufacturing PMI in August was 47.6 higher than expected 47.

Market expects 93% probability rate remain unchanged in September.

Upcoming Economic Calendar including,

Wednesday, 6th September 10:00pm: US ISM Services PMI in August

Cryptos-Outlook

Ethereum foundation introduced the Ethereum Execution Layer Specification (EELS). EELS is a Python reference implementation of the core components of an Ethereum execution client focused on readability and clarity.

Trending Protocols

Layer 1 and Layer 2

BNB hardfork was completed on 30th August, improving cross-network compatibility, optimise gas mechanisms of the network, introduce Optional Access Lists, new EVM opcode (BASEFEE) and prevent BSC developers from deploying certain types of smart contracts.

Polygon announced Chain Development Kit (CDK), allows anyone to launch their own ZK-powered L2 chain on Ethereum and connects to Polygon ecosystem.

The EOS Network Foundation said the EOS token has been whitelisted by the Japan Virtual Asset Exchange Association (JVCEA).

Arbitrum announce the release of the code and public testnet for Arbitrum Stylus, allows developers to build with other popular programming languages like Rust.

Dapps

Lybra V2 is live, enables multiple collateral options and new tokenomics model.

Instadapp introduced MultiSig feature for their Avocado wallet.

Threshold Network introduced thUSD which users can borrow against BTC and ETH as collateral.

Stride joined Neutron as the second chain to leverage the Cosmos Hub’s validator set and security through Replicated Security.

SWIFT, the global interbank messaging service, is exploring support for interconnected CBDCs through Chainlink's CCIP.

The technical issue with the GHO integration in the Aave V3 Ethereum Pool has been resolved and minting of GHO has resumed.

Circle announced launching of native Cosmos ecosystem USDC on Noble, dYdX will use it as the collateral option.

Upcoming Alpha: Token Unlock, Governance

MakerDAO Co-Founder Rune proposed a fork of the Solana codebase for NewChain, Cosmos is another alternative option.

dYdX passed snapshot on V4 adoption and token migration to dYdX Chain, next will be on-chain vote using the Long Timelock. V4 is expected to be launched in late September.

Alex, the founder of zkSync, proposed a new governance solution: L1 Fork as the Court of Final Appeal and a hierarchical system of onchain courts similar to the real-world judiciary with a standard ERC interface for it.

Mantle proposed a combined liquidity allowance of 60M USDx, 30k ETH, and 120M MNT.

Aave passed Temp Check to deploy V3 on Gnosis Chain.

Uniswap proposed deployment of Uniswap V2 on all chains with V3. Uniswap also plans to launch new incentive program with new methodology by Gauntlet in the next few weeks.

GLMR Token Unlocked on 8th September, amount representing 0.42% of the token supply.

IMX Token Unlocked on 9th September, amount representing 1.61% of the token supply.

APT Token Unlocked on 12th September, amount representing 1.99% of the token supply.

LDO Token Unlocked on 13th September, amount representing 0.17% of the token supply.

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