collateral

Delphi Digital tweeted, "Tether and Circle are not foolproof systems. Just because they are backed 1:1 by short-term government bonds and cash equivalents does not mean they are immune to potential runs. The USDC depegging incident during the collapse of Silicon Valley Bank (SVB) in early 2023 already revealed signs of this risk.USDC was originally fully reserved, but when Silicon Valley Bank collapsed, part of the reserves became temporarily inaccessible. This means the risk has merely shifted upwards. In traditional banking, payment risk is usually dispersed among various institutions; in the stablecoin system, while payment channels may be deterministic and automated, this means that the settlement risk, which was previously eliminated among participants, is now concentrated at the issuer level. The system has not become risk-free; rather, it has transformed into a vertically dependent structure. This is precisely why concerns about issuer concentration have begun to arise."

Venus Protocol releases updates on the abnormal activity in the THE liquidity pool. In addition to previously suspending THE borrowing and withdrawals, the collateral factors (CF) for 7 markets have now been reduced to 0 as a precautionary measure against markets where a single user holds an excessively high proportion of collateral. The 7 markets are BCH, LTC, UNI, AAVE, FIL, TWT, and lisUSD, while all other markets remain unaffected and continue to operate normally.The preliminary assessment of the attack method indicates that the attacker began accumulating THE tokens slowly through normal deposit processes starting in June 2025, ultimately holding 84% of the cap (approximately 12.2 million THE). Yesterday, the hacker directly transferred THE tokens into the protocol contract, instantly increasing the supply and creating a massive amount of collateral. They then engaged in recursive price manipulation, taking advantage of the extremely low on-chain liquidity of THE combined with the TWAP oracle delay. The hacker initiated a loop: depositing THE, borrowing other assets, using the borrowed assets to buy more THE on-chain, and waiting for the TWAP oracle to update and drive up the price. Venus stated that it is committed to transparency and will release a complete report after the investigation concludes.

According to on-chain analyst Yu Jin's monitoring, an address that received 7,400 ETH from Tornado (hacker?) dominated tonight's liquidation event of CAKE and THE collateral, resulting in Venus incurring a liquidation deficit of about $2.15 million (1.18 million CAKE + 1.84 million THE), while the hacker obtained approximately $5.07 million in funds from Venus (2,172 BNB + 1.516 million CAKE + 20 BTC):The address first received 7,400 ETH from Tornado through the address 0x7a7...234, then deposited it into Aave to borrow 9.92 million U (including USDT, DAI, USDC) and transferred it to multiple wallets to purchase THE.Around 8 PM tonight, he likely pumped the price of THE in a CEX (it is presumed he had previously deployed long positions). Then, through two wallets, he deposited 36.1 million THE into Venus, borrowing assets like BTC, BNB, CAKE, etc.Forty minutes later, the price of THE plummeted (most likely due to his closing of long positions and opening of shorts), and his collateral on Venus was liquidated, further pushing down the price of THE. Ultimately, the collateral from these two wallets was completely liquidated, but there remained about $2.15 million (1.18 million CAKE + 1.84 million THE) in loans that had not been repaid, resulting in a deficit for Venus.Overall, he borrowed 9.92 million U to create chaos, but the assets borrowed from Venus were only worth $5.07 million. While it may not seem profitable on-chain, it is speculated that he aimed to dominate the decline of THE through on-chain liquidation, thus making a profit on his positions in the CEX.

Synthetix releases the 2026 roadmap, covering six major directions:Stock Buybacks and Restoration of USD Pegged Exchange Rate: All trading revenues will be used for SNX stock buybacks and USD buybacks. The goal is to achieve a stable USD pegged exchange rate by the end of the second quarter.Multi-Collateral Trading (April): Native deposits of ETH, cbBTC, and other assets as collateral on Synthetix Perps - releasing billions of dollars of idle Ethereum mainnet funds.Basis Trading Vault (Second Quarter): Popularizing access to delta-neutral basis trading strategies, with stablecoin assets represented as supported by basis trading.Synthetix Liquidity Pool (SLP) Public Release (Second Quarter): A community-owned market-making vault - no management fees, no performance fees, currently in private beta testing with an annualized yield of about 45%.Market Expansion: The cryptocurrency market expands in the first quarter, the commodities market begins to expand in April, the foreign exchange market starts expanding in June, and pre-release perpetual contracts for highly anticipated tokens.Digital Dollar Vision: Transitioning sUSD to a fully decentralized, basis trading-collateralized stablecoin—supported by a Perp DEX that uniquely owns the native stablecoin.Synthetix states that 2026 is the year of Synthetix's return, with a clear goal: to provide the best perpetual trading experience in the DeFi space, relying on the security, composability, and neutrality of the Ethereum mainnet.

The Compound Foundation announced that USDe has been added as collateral for USDC and USDT Comets in the Compound v3 mainnet.

Decentralized protocol OmniPact, built for a trust layer in peer-to-peer trading of physical and digital assets, announced the completion of a $50 million private placement financing, backed by a consortium of institutional investors and family offices that require anonymity. The protocol utilizes smart contracts as on-chain collateral to address the "trust issue" in peer-to-peer transactions.The new funding will support the development of its core contracts and multi-chain infrastructure, as well as related security audits, while also driving the launch of its testnet in the first quarter of 2026.

According to official news, the Solana-based lending protocol Loopscale has announced that LP tokens from Orca and Raydium can now be used as collateral for lending. Loopscale's order book architecture allows for pricing based on the conditions of each position itself, rather than incorporating it into a centralized lending pool model.Through this credit market infrastructure, over $1 billion in yield-generating liquidity can be unlocked. The system is capable of independently assessing and pricing each LP based on multiple variables such as price range, fee tier, and underlying assets.

The Bitcoin payment app Strike announced on the X platform the official launch of its Bitcoin-backed credit line service, allowing users to borrow fiat currency in real-time for lightning payments or bill payments without needing to sell Bitcoin to access cash liquidity. Currently, the service supports low-threshold lending and will initially launch in Georgia and Massachusetts, with plans to expand to more states in the U.S.

Arkham analyst Emmett Gallic corrected his earlier statement regarding Trump Media Technology Group selling 2,000 BTC. He stated that the relevant tweet has been deleted and clarified that the company is not selling Bitcoin but is delivering 2,000 BTC as collateral to a counterparty.Gallic mentioned that since the relevant Bitcoin is no longer under the company's control, it has been removed from the balance sheet. According to the arrangement, the counterparty can decide whether to re-collateralize or otherwise dispose of the collateral, including selling it.

According to The Block, the DeFi native prime broker Project 0 is about to launch Project 0 Pay, which provides users with a way to use the liquidity of their crypto portfolios to pay off credit card debt without selling assets or interrupting yield generation.This new feature essentially tracks users' spending to provide end-of-month statements and calculates borrowing transactions against their portfolios. If approved, the transaction will cover the expenses for that period without liquidating their held assets.

According to the official announcement, Binance will adjust the portfolio margin and the collateral rates for multiple assets such as LRC and QTUM under PMPro on February 27, 2026, at 14:00 (Beijing time).At the same time, Binance Futures will adjust the leverage and margin levels for USDⓈ-M perpetual contracts such as MONUSDT, MASKUSDT, and PEOPLEUSDT on the same day at 14:30. Existing positions will be affected.

According to The Block, Coinbase announced that it has added XRP, Dogecoin (DOGE), Cardano (ADA), and Litecoin (LTC) as collateral assets for its on-chain crypto collateralized lending product provided by the DeFi protocol Morpho. Eligible U.S. users (excluding New York State) can now borrow up to $100,000 USDC without having to sell the aforementioned tokens.Previously, the product supported Bitcoin and Ethereum as collateral, with Bitcoin allowing a maximum loan of $5 million USDC and Ethereum allowing a maximum loan of $1 million USDC.Coinbase stated that the on-chain lending service operates on the Morpho protocol on the Base network, and to date, the total loan issuance has exceeded $1.9 billion. The company charges a one-time borrowing fee, which is included in the loan principal.

Ondo Finance announced that the tokenized stocks of Ondo Global Markets are now live in the DeFi lending market, with SPYon and QQQon being the first to launch, integrated with Morpho and Gauntlet.Ondo's tokenized stocks and ETFs are now available as efficient risk management collateral assets in Ethereum DeFi.

The founder of the Bitcoin payment application Strike, Jack Mallers, posted on the X platform to respond to the adjustment of the margin call policy. He stated that the Strike loan mechanism will not fully liquidate Bitcoin collateral. When the loan falls below the maintenance margin level, the platform will only conduct partial liquidations to restore the loan to approximately 65% of a healthy loan-to-value (LTV) ratio.Jack Mallers added that this mechanism is designed to protect users' Bitcoin assets as much as possible while maintaining loan health and to give customers and Bitcoin prices more time to recover. Based on this mechanism, the liquidation ratio of Strike's overall loan book remains in the low single-digit range of the total outstanding loans, approximately 1%--3%.

According to Decrypt, the Thai cabinet has approved amendments to the Derivatives Act, allowing digital assets to be used as underlying instruments for regulated derivatives. Pornanong Budsaratragoon, Secretary-General of the Securities and Exchange Commission (SEC), stated that this move will "promote more inclusive market growth, facilitate diversification and more effective risk management, and expand investment opportunities for a broader range of investors."The SEC will formulate subsequent rules to amend the derivatives license, enabling digital asset operators to offer crypto-related contracts and coordinate with the Thailand Futures Exchange (TFEX) to establish contract specifications.

The Thai Cabinet has approved amendments to the Derivatives Act, allowing digital assets to be used as supporting tools for regulated derivatives. The Secretary-General of the Securities and Exchange Commission (SEC), Pornanong Budsaratragoon, stated that this move will promote more inclusive market growth, facilitate diversification and more effective risk management, and expand investment opportunities for a broader range of investors.The SEC will formulate subsequent rules to amend the derivatives license, enabling digital asset operators to offer crypto-related contracts and coordinate with the Thailand Futures Exchange (TFEX) to establish contract specifications.

According to official news, Ondo Finance announced a partnership with Chainlink to accelerate the application of tokenized U.S. stocks in the DeFi space by adopting Chainlink as the official data oracle.It was introduced that Chainlink provides institutional-grade pricing tailored specifically for Ondo's on-chain tokenized stocks, allowing DeFi protocols to price Ondo Global Markets assets with top-tier accuracy, manage positions securely, and offer users stronger protection during market volatility.Currently, the initial lending of Ondo tokenized assets, including SPYon, QQQon, and TSLAon, supported by Chainlink, has gone live on Euler, enabling users to borrow stablecoins using tokenized stocks and ETFs as collateral. In the future, tokenized stocks and ETFs will expand to more markets, vaults, and structured products, facilitating more efficient capital deployment and portfolio construction.

According to the official announcement, Binance and Franklin Templeton have launched their first collaborative product - the Institutional OTC Collateral Program. This program allows eligible institutional clients to use tokenized money market fund (MMF) shares issued through the Franklin Templeton Benji technology platform as collateral for trading on Binance.This initiative aims to enable institutional traders to participate in the digital market using traditional, regulated, and yield-generating money market fund assets without the need to deposit assets into the exchange, thereby reducing counterparty risk and earning returns.

According to on-site reports from Foresight News, the Chief Executive Officer of the Hong Kong Securities and Futures Commission (SFC), Ashley Alder, stated at the Consensus 2026 conference that the SFC is committed to establishing a comprehensive regulatory ecosystem for virtual assets and announced three new initiatives:Guaranteed Financing: Allow brokers to provide financing services to clients with good credit backgrounds, with collateral that may include securities and virtual assets. Initially, this will only be open to Bitcoin and Ethereum, and a prudent haircut will be required in accordance with traditional financial standards.Perpetual Contracts: A high-level regulatory framework will be announced, allowing licensed platforms to offer perpetual contract products. This service is currently limited to "professional investors" and requires platforms to have extremely high transparency and the ability to manage volatility fees and automatic liquidation risks.Associated Market Makers: Regulations will be relaxed to allow licensed platforms to provide liquidity through their affiliated market-making units, provided they can demonstrate functional independence and strict management of conflicts of interest.Alder pointed out that tokenized assets have developed rapidly over the past year, with the asset management scale of tokenized gold reaching $400 million, doubling in the past six months. Currently, the SFC has authorized 11 tokenized money market funds. In addition, Project Ensemble is piloting the use of tokenized deposit settlement money market funds. Regarding the regulatory roadmap, the SFC has published a consultation summary on virtual asset trading and custody and plans to collaborate with the SAR government to submit relevant legislative proposals within this year.