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first_img Coinbase launches fixed-rate Bitcoin mortgage through Morpho Midnight

According to The Block, Coinbase announced the launch of fixed-rate Bitcoin collateralized loans through Morpho Midnight, allowing users to borrow USDC and determine the interest rate and repayment date at the time of borrowing. This new option is alongside Coinbase's existing floating-rate loans (based on Morpho Blue), which have outstanding loans exceeding $1.4 billion, corresponding to collateral of approximately $3 billion.Morpho launched Midnight on Base in July, introducing fixed rates and clear loan terms for on-chain lending. A Morpho spokesperson stated that Coinbase is the first mainstream consumer platform to offer Midnight loans on a large scale; since Midnight's launch, deposits have reached approximately $30 million. The outstanding loans for Morpho Blue across all integrations amount to $5.2 billion, with deposits reaching $16 billion.A Coinbase spokesperson did not disclose specific interest rates, stating that rates are determined by the supply and demand of both parties on the on-chain order book. Currently, Coinbase offers loans that mature at the end of the month or the end of the following month, and borrowers must repay before the due date; otherwise, lenders have the right to liquidate their collateral. Jacob Frantz, Coinbase's head of revenue and investment products, stated that Coinbase Borrow allows users to obtain liquidity without selling assets, and fixed-rate borrowing gives users greater choice in credit management. Morpho indicated that Midnight could also be used in the future to build structured credit products and loans collateralized by tokenized real-world assets, with more integrations in progress.

Liquid Network releases emergency fix: Elements v23.3.4 fixes Proof verification cache vulnerability

Liquid Network has released the latest update stating that the emergency version Elements v23.3.4 is now online. Functionary nodes have immediately begun upgrading and all Liquid node operators are advised to synchronize updates. This version addresses the previously discovered Proof verification cache vulnerability and strengthens the cache keys used for Range Proof.Regarding network recovery, Blockstream states that it is still formulating a recovery plan, which is expected to proceed in three phases: restoring block production while continuing to suspend Peg operations; replaying verified valid transactions; and restoring Peg operations after the network status is fully restored and funds are confirmed to be returned. Currently, the first two phases are being tested in parallel, and any phase will only advance once safety is confirmed. Liquid Network indicates that Elements v23.3.4 has completed multiple rounds of internal and external reviews, with participants including the Bitcoin Red Team, Alpen Labs, and other teams.At the same time, Liquid Network reminds users to be vigilant against fraudulent upgrade websites exploiting this incident. Information should only be obtained through official Liquid Network and Blockstream channels, and users should never send funds to strangers or disclose private keys or recovery phrases.

first_img Morpho will expand the fixed-rate Midnight market to Ethereum

According to The Defiant, the decentralized lending protocol Morpho deployed its fixed-term, fixed-rate lending agreement Midnight to Ethereum on September 8, expanding the product from the Base network to Ethereum, allowing Ethereum users to access USDC loans collateralized by WBTC or cbBTC. Morpho co-founder Merlin Egalite stated that the Ethereum launch will start with the "USDC | cbBTC and USDC | WBTC markets" and will gradually expand.The core difference between Midnight and Morpho Blue lies in interest rate certainty. Blue uses open loans where interest rates fluctuate according to a formula; Midnight, on the other hand, trades credit units at market-priced rates with fixed terms, allowing borrowers to determine financing costs in advance, and lenders can lock in returns instead of bearing interest rate changes with each block. Midnight lenders purchase credit units at prices below the one-to-one redemption value at maturity.However, the largest potential source of funds for Midnight remains constrained. The Morpho Vaults, holding approximately $5 billion in deposits, can only allocate to the Morpho Blue market until the DAO enables the Midnight configuration. Morpho co-founder and CEO Paul Frambot stated that enabling the Vault configuration requires just one DAO transaction, but Vault activation is expected to be achieved in the fourth quarter. At launch, the total deposits in the Ethereum Midnight market were approximately $7.41 million, with outstanding loans of about $2.63 million.

first_img Polygon has fixed security vulnerabilities through two hard forks, which were previously deployed privately

Polygon Labs disclosed that it has fixed a batch of security vulnerabilities in its proof-of-stake network through two hard forks, with the related fixes privately deployed before public disclosure. According to a forum post released on Wednesday, the team packaged the fixes into the Austin hard fork of the Bor client and the Kyoto hard fork of the Heimdall client, both of which followed the standard process for fixing issues that affect consensus: first validated on the Amoy testnet, and then publicly disclosed once the mainnet was activated and the network was secure.The Austin fork fixed two denial-of-service paths in block processing, including a vulnerability where malicious block producers could crash peer nodes by filling them with oversized field data. The Kyoto fork addressed a broader range of consensus hardening issues, with the most severe vulnerability allowing an attacker to force the entire validator set to perform costly and coordinated work with just one crafted transaction—the cost of constructing the transaction is low, but the network processing cost is high. Polygon emphasized that none of the vulnerabilities were observed to be exploited on the mainnet and have been proactively addressed. The two upgrades are now mandatory for node operators and have taken effect without the need for state migration or resynchronization.This disclosure comes at a critical transformation period for Polygon, which has completed the migration of the traditional MATIC token to POL as part of a comprehensive overhaul of its network architecture. The news did not boost the price of POL; according to CoinGecko data, POL traded at approximately $0.09983 on Sunday, down 2.3% in 24 hours, down about 6.8% over the past week, and down about 60.8% over the past year, with a market capitalization of approximately $1.07 billion.
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