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Lending

Lending protocols form the backbone of the decentralized money market, allowing users to lend or borrow digital assets without intermediaries. Using smart contracts, platforms like Aave and Morpho automate interest rates based on supply and demand while requiring over-collateralization for security. The 2026 lending landscape features advanced permissionless vaults and institutional-grade credit lines. This tag covers the evolution of capital efficiency, liquidations, and the integration of diverse collateral types, including LSTs and tokenized RWAs.

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Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
Bitwise CIO Suggests Bitcoin ETFs May Surpass Basic Corporate Holdings

Bitwise CIO Suggests Bitcoin ETFs May Surpass Basic Corporate Holdings

The post Bitwise CIO Suggests Bitcoin ETFs May Surpass Basic Corporate Holdings appeared on BitcoinEthereumNews.com. COINOTAG recommends • Exchange signup 💹 Trade with pro tools Fast execution, robust charts, clean risk controls. 👉 Open account → COINOTAG recommends • Exchange signup 🚀 Smooth orders, clear control Advanced order types and market depth in one view. 👉 Create account → COINOTAG recommends • Exchange signup 📈 Clarity in volatile markets Plan entries & exits, manage positions with discipline. 👉 Sign up → COINOTAG recommends • Exchange signup ⚡ Speed, depth, reliability Execute confidently when timing matters. 👉 Open account → COINOTAG recommends • Exchange signup 🧭 A focused workflow for traders Alerts, watchlists, and a repeatable process. 👉 Get started → COINOTAG recommends • Exchange signup ✅ Data‑driven decisions Focus on process—not noise. 👉 Sign up → Investors should prioritize crypto exchange-traded funds (ETFs) over shares in companies simply holding digital assets on their balance sheets, as argued by Bitwise CIO Matt Hougan. True value in digital asset treasuries (DATs) comes from complex strategies like DeFi participation, not basic holdings, which ETFs now match through staking. ETFs offer easier access to crypto exposure without corporate risks. Digital asset treasuries must pursue challenging strategies to justify investment over ETFs. Companies like MicroStrategy stand out by leveraging debt and equity to amass significant Bitcoin holdings, exceeding 641,205 BTC valued at over $66 billion. Discover why crypto ETFs outperform basic digital asset treasuries in 2025. Learn expert insights from Bitwise on strategies that matter. Explore now for smarter investment decisions. What Makes Crypto ETFs a Better Choice Than Digital Asset Treasuries? Crypto ETFs provide investors with direct, regulated exposure to digital assets like Bitcoin and Solana without the added complexities of corporate balance sheets. According to Bitwise Chief Investment Officer Matt Hougan, simply purchasing crypto and holding it on a company’s books no longer differentiates a digital asset treasury…

Author: BitcoinEthereumNews

2025/11/06

Ripple Raises $500 Million at $40 Billion Valuation Led by Fortress, Citadel Securities

Ripple Raises $500 Million at $40 Billion Valuation Led by Fortress, Citadel Securities

Crypto payments firm reports $95 billion in transaction volume as institutional investors back expansion into stablecoins and prime brokerage

Author: Blockhead

2025/11/06

Could Curator, a key figure in the Stream Finance de-anchoring incident, be a hidden minefield in DeFi?

Could Curator, a key figure in the Stream Finance de-anchoring incident, be a hidden minefield in DeFi?

Author: Azuma, Odaily Planet Daily The sudden occurrence of two major security incidents (Balancer and Stream Finance) has once again brought the issue of DeFi security to the forefront. In particular, the Stream Finance incident exposed the huge potential risks of Curator, a player who has become a significant player in the DeFi market. The term "Curator" primarily exists within DeFi lending protocols (such as Euler and Morpho, which were affected by the Stream incident). It typically refers to an individual or team responsible for designing, deploying, and managing specific "strategic vaults." Curators generally encapsulate relatively complex yield strategies into easy-to-use vaults, allowing ordinary users to "deposit with one click and earn interest." The Curator, on the other hand, determines the specific yield strategies for assets in the backend, such as asset allocation weights, risk management, rebalancing cycles, withdrawal rules, and so on. Odaily Note: The image above shows the Curator fund pool on Morpho. The Steakhouse, Gauntlet, etc. in the red box are the names of the Curator entities, representing the entities responsible for designing, deploying, and managing the fund pool. Unlike traditional centralized wealth management services, Curator does not have direct access to or control over user funds. Assets deposited by users into the lending protocol will always be stored in a non-custodial smart contract. Curator's authority is limited to configuring and executing policy operations through the contract interface, and all operations must be subject to the contract's security restrictions. Market demand for Curator Curator's original intention was to leverage its professional strategy management and risk control capabilities to bridge the supply and demand mismatch in the market—on the one hand, to help ordinary users who are struggling to keep up with the increasing complexity of DeFi to amplify their returns; on the other hand, to help lending protocols expand their TVL while reducing the probability of systemic events. Because Curator's managed funds often offer more attractive returns than classic lending markets like Aave, this model naturally attracts capital. Defillama data shows that the total size of Curator-managed funds has grown rapidly over the past year, briefly exceeding $10 billion on October 31, and is currently reported at $8.19 billion. Amidst fierce competition, Gauntlet, Steakhouse, MEV Capital, and K3 Capital have gradually emerged as some of the largest Curators in terms of assets under management, each managing massive sums in the hundreds of millions. Meanwhile, lending protocols like Euler and Morpho, which primarily utilize the Curator pooling model, have also achieved rapid growth in their total value of loans (TVL), successfully securing a leading position in the market. Curator's profit model Having seen this, Curator's role seems quite clear, and it also has sufficient market demand. So why is it a potential risk threatening the DeFi world right now? Before analyzing the risks, we need to understand Curator's profit logic. Curator primarily relies on the following methods to generate revenue: Performance sharing: Curator receives a percentage of the net profit after the strategy generates revenue. Fund management fee: Based on the total assets of the fund pool, it is charged at a certain annualized rate. Protocol Incentives and Subsidies: Lending protocols typically incentivize Curator with tokens to encourage the creation of new, high-quality strategies; Brand-derived revenue: For example, Curator can launch its own products or even tokens after establishing its brand. In reality, performance-based revenue sharing is the most common source of income for Curators. As shown in the diagram below, Morpho charges a 7% performance-based share for the USDC liquidity pool on the Ethereum mainnet, which is managed by MEVCapital. This profit model dictates that the larger the pool of funds managed by Curator and the higher the strategy's return rate, the greater Curator's profit will be. Of course, theoretically, Curator could also increase revenue by increasing the commission rate, but in the face of relatively fierce market competition, no Curator dares to arbitrarily take away profits from users. At the same time, since most depositors are not sensitive to Curator's brand differences, their choice of which pool to deposit into often depends solely on the publicly available APY figure. This makes the attractiveness of the pool directly linked to the strategy's yield, thus making the strategy yield the core factor ultimately determining Curator's returns. Driven by yields, risks are gradually being overlooked. Sensitive readers may have already realized that a problem is brewing. In a yield-driven model, Curators can only achieve higher profits by constantly seeking "opportunities" with higher yields. Since yield and risk are often positively correlated, some Curators gradually forget about the safety issues that should be considered first and choose to take risks—"Anyway, the principal belongs to the users, and the profits are mine." Taking Stream Finance as an example, a key reason for such a large-scale impact was that some Curators on Euler and Morpho (including well-known brands such as MEV Capital and Re7) ignored the risks and allocated funds to Stream Finance's xUSD market, which directly affected users who deposited funds into the relevant Curator pools, and subsequently caused bad debts in the lending protocol itself, indirectly expanding the scope of the impact. Odaily Note: The image shows a summary of the debt positions of various Curators in the Stream Finance incident by the DeFi community YAM. Several days before the Stream Finance incident, several KOLs and institutions, including CBB (@Cbb0fe), had warned of potential transparency and leverage risks associated with xUSD, but these curators clearly chose to ignore them. Of course, not all Curators were affected by Stream Finance. Several leading Curators, such as Gauntlet, Steakhouse, and K3 Capital, never deployed funds to xUSD. This shows that professional entities like Curators are capable of identifying and mitigating potential risks when they effectively fulfill their security responsibilities. Will Curator pose even greater risks? Following the Stream Finance incident, Curator and its potential risks and impacts have attracted even more attention. Chorus One investment analyst Adrian Chow, in an article published on X, directly compared Curator and its related lending protocols to Celsius and BlockFi in this cycle. Indeed, from a purely data perspective, Curator's pool of funds, with a total value exceeding $8 billion, already has an impact comparable to the black swan events of the previous cycle, and Curator's widespread presence across mainstream lending protocols also implies a significant scope of influence. Will Curators trigger a larger-scale risk event in this cycle? This is a difficult question to answer. From the original intention of Curators, their role was supposed to be to reduce individual risk for ordinary users through their professional management capabilities. However, their business model and profit path make Curators themselves an easy entry point for concentrated risk. For example, if multiple lending protocols in the market rely on a few Curators, and their models experience unexpected deviations (such as incorrect oracle prices), all parameters will be misadjusted simultaneously, thus affecting multiple liquidity pools at once. Another point worth mentioning is that, in the current market environment, many users who deposit money into lending agreements are not even fully aware of the role or existence of Curators, simply believing that they are investing their funds in a well-known lending agreement to earn interest. This leads to the role and responsibility of Curators being obscured. When incidents occur, it is the lending agreement that directly faces the anger and accountability of users, which further encourages some Curators to pursue profits too aggressively. Arthur, founder of DeFiance Capital, also commented on this phenomenon yesterday: "This is why I have always been skeptical of Curator-based DeFi lending models. Lending platforms bear reputational risk and have a responsibility to care for their users, and whether they like it or not, a few poorly managed or unethical Curators can negatively impact the platform." I personally do not believe that using Curator to maintain a fund pool is a failed business model, and I do have funds in some Curator fund pools (currently only Steakhouse remains). However, I also agree that the aggressive tendencies of some Curators may breed a wider range of risks. The deeper reason for this situation lies in the lack of risk control by the user group and some Curators. Furthermore, due to the profit-driven motives mentioned above, the latter may have certain subjective factors. While we consistently urge users to evaluate protocols, pools, and strategy configurations themselves, this is clearly difficult to achieve because most users lack the time, expertise, or willingness to do so. Against this backdrop, many users unknowingly invest in Curator pools, which generally offer higher returns, thus driving the rapid growth of Curator's managed assets. Conversely, some Curators cleverly exploit this situation to attract more funds, employing more aggressive strategies to increase pool yields, thereby drawing in even more capital through higher returns. How can we improve the current situation? Growth always involves growing pains. While the Stream Finance incident dealt another heavy blow to the DeFi market, it may also become an opportunity for users to increase their understanding of Curators and for the market to improve its constraints on Curator behavior. From a user's perspective, we still recommend that users conduct as much independent research as possible. Before investing funds in a specific Curator fund pool, users should pay attention to the reputation of the Curator entity and the design of the fund pool. Research methods include, but are not limited to: Are there any publicly available risk models or stress test reports? Are the access boundaries transparent? Are they subject to multi-signature or governance restrictions? How often did the strategies draw down in the past, and how did they perform in extreme market conditions? Has there been a third-party audit? Does the incentive mechanism align with the interests of users? Most importantly, users need to realize that risk is always positively correlated with return. Before making investment decisions, they should be prepared for the most extreme scenarios. They can always keep in mind this quote from Matt Hougan, Chief Investment Officer of Bitwise: "The vast majority of cryptocurrency crashes are due to investors being misled by double-digit risk-free returns, when there is no such thing as a risk-free double-digit return in the market." As for Curators, they need to simultaneously improve their risk awareness and risk management capabilities. DeFi research firm Tanken Capital has summarized the basic risk control requirements for an excellent Curator, which specifically include: Possess compliance awareness in the traditional financial sector; Portfolio risk management and return optimization; Learn about new tokens and DeFi mechanisms; Understand oracles and smart contracts; It has the ability to monitor the market and perform intelligent reconfiguration. As for the lending agreement directly associated with Curator, it should continuously optimize the constraints on Curator by requiring Curator to disclose its strategy model, independently verify the model with data, introduce a staking penalty mechanism to maintain accountability for Curator, and regularly evaluate Curator's performance and decide whether to replace it. Only through continuous and proactive monitoring, and by minimizing the risk space, can the risk resonance of the entire system be more effectively avoided.

Author: PANews

2025/11/06

US Banks Oppose Crypto Trust Charters Linked to USDC, Raising Regulatory Concerns

US Banks Oppose Crypto Trust Charters Linked to USDC, Raising Regulatory Concerns

The post US Banks Oppose Crypto Trust Charters Linked to USDC, Raising Regulatory Concerns appeared on BitcoinEthereumNews.com. COINOTAG recommends • Exchange signup 💹 Trade with pro tools Fast execution, robust charts, clean risk controls. 👉 Open account → COINOTAG recommends • Exchange signup 🚀 Smooth orders, clear control Advanced order types and market depth in one view. 👉 Create account → COINOTAG recommends • Exchange signup 📈 Clarity in volatile markets Plan entries & exits, manage positions with discipline. 👉 Sign up → COINOTAG recommends • Exchange signup ⚡ Speed, depth, reliability Execute confidently when timing matters. 👉 Open account → COINOTAG recommends • Exchange signup 🧭 A focused workflow for traders Alerts, watchlists, and a repeatable process. 👉 Get started → COINOTAG recommends • Exchange signup ✅ Data‑driven decisions Focus on process—not noise. 👉 Sign up → US banks are opposing crypto firms’ bids for national trust-bank charters, arguing that these moves allow platforms like Coinbase to gain federal legitimacy without full regulatory compliance. Trade groups such as the Bank Policy Institute and Independent Community Bankers of America have urged the Office of the Comptroller of the Currency to reject these applications to maintain a level playing field in the financial sector. Traditional banks view national trust charters as a loophole for crypto companies to access banking privileges without equivalent oversight. Crypto firms like Ripple and Circle are also facing resistance, with letters sent to regulators highlighting risks to financial stability. According to statements from the OCC, approving these charters could enable better supervision of nonbank entities, though banks counter that it undermines existing regulations, with stablecoin yields like 3.85% on USDC raising deposit-like concerns. Discover why US banks oppose crypto national trust charters and the regulatory battle shaping finance. Stay informed on stablecoin rules under the Genius Act—explore key insights today. What Are the Risks of Crypto Firms Seeking National Trust-Bank Charters? Crypto national trust…

Author: BitcoinEthereumNews

2025/11/06

PBOC sets USD/CNY reference rate at 7.0865 vs. 7.0901 previous

PBOC sets USD/CNY reference rate at 7.0865 vs. 7.0901 previous

The post PBOC sets USD/CNY reference rate at 7.0865 vs. 7.0901 previous appeared on BitcoinEthereumNews.com. On Thursday, the People’s Bank of China (PBOC) set the USD/CNY central rate for the trading session ahead at 7.0865 compared to the previous day’s fix of 7.0901 and 7.1222 Reuters estimate. PBOC FAQs The primary monetary policy objectives of the People’s Bank of China (PBoC) are to safeguard price stability, including exchange rate stability, and promote economic growth. China’s central bank also aims to implement financial reforms, such as opening and developing the financial market. The PBoC is owned by the state of the People’s Republic of China (PRC), so it is not considered an autonomous institution. The Chinese Communist Party (CCP) Committee Secretary, nominated by the Chairman of the State Council, has a key influence on the PBoC’s management and direction, not the governor. However, Mr. Pan Gongsheng currently holds both of these posts. Unlike the Western economies, the PBoC uses a broader set of monetary policy instruments to achieve its objectives. The primary tools include a seven-day Reverse Repo Rate (RRR), Medium-term Lending Facility (MLF), foreign exchange interventions and Reserve Requirement Ratio (RRR). However, The Loan Prime Rate (LPR) is China’s benchmark interest rate. Changes to the LPR directly influence the rates that need to be paid in the market for loans and mortgages and the interest paid on savings. By changing the LPR, China’s central bank can also influence the exchange rates of the Chinese Renminbi. Yes, China has 19 private banks – a small fraction of the financial system. The largest private banks are digital lenders WeBank and MYbank, which are backed by tech giants Tencent and Ant Group, per The Straits Times. In 2014, China allowed domestic lenders fully capitalized by private funds to operate in the state-dominated financial sector. Source: https://www.fxstreet.com/news/pboc-sets-usd-cny-reference-rate-at-70865-vs-70901-previous-202511060115

Author: BitcoinEthereumNews

2025/11/06

The UK plans to introduce stablecoin regulations in line with those of the US.

The UK plans to introduce stablecoin regulations in line with those of the US.

PANews reported on November 6th, citing Bloomberg, that Bank of England Deputy Governor Sarah Breeden stated that UK stablecoin rules will be implemented "as quickly as in the US," denying that the UK is lagging behind in regulatory progress. She noted that because UK mortgage lending relies on commercial banks, the UK is at a different stage than the US in setting limits on stablecoin holdings. The regulatory framework, developed collaboratively by the Bank of England and other regulators, aims to strike a balance between payments and financial stability. Key areas include issuer oversight, reserve asset security, and payment system integration.

Author: PANews

2025/11/06

Revolutionary Crypto Treasury Firms: Why Complex Strategies Deliver Explosive Returns

Revolutionary Crypto Treasury Firms: Why Complex Strategies Deliver Explosive Returns

BitcoinWorld Revolutionary Crypto Treasury Firms: Why Complex Strategies Deliver Explosive Returns Are crypto treasury firms missing massive opportunities by sticking to basic buy-and-hold approaches? According to Bitwise’s Chief Investment Officer Matt Hougan, sophisticated strategies separate the winners from the also-rans in digital asset management. Let’s explore why complex operational approaches are becoming essential for success. Why Do Crypto Treasury Firms Need Advanced Strategies? Hougan argues that simply adding cryptocurrency to a balance sheet no longer cuts it in today’s competitive landscape. The most successful crypto treasury firms employ sophisticated methods that go far beyond passive holding. These complex strategies help companies maximize returns while managing risk effectively. Anyone can buy Bitcoin and wait. However, true value creation comes from actively managing digital assets through innovative financial engineering. This approach separates industry leaders from followers. What Makes MicroStrategy’s Approach So Effective? MicroStrategy exemplifies how complex strategies create substantial value. The company holds approximately $64 billion in Bitcoin against only $8 billion in debt. This creates $56 billion in equity from BTC holdings alone. The firm’s sophisticated approach includes: Using Bitcoin as collateral for convertible notes Issuing preferred stock to acquire more BTC Creating structures that enable premium stock valuation This multi-layered strategy demonstrates why crypto treasury firms must think beyond simple accumulation. Which Complex Strategies Deliver Superior Returns? Hougan highlights several advanced approaches that successful crypto treasury firms employ. These methods require expertise but offer significant rewards. The most effective strategies include: Sophisticated covered call programs on crypto assets Active participation in the DeFi ecosystem Strategic lending operations with proper risk management Each approach demands specialized knowledge and careful execution. However, the potential returns justify the complexity for forward-thinking crypto treasury firms. How Can Companies Avoid Being ‘Lazy’ DAT Operations? Hougan warns that companies taking passive approaches will face valuation discounts. Meanwhile, crypto treasury firms executing difficult strategies will capture market premiums over time. The key differentiator lies in active management and financial innovation. Companies must continuously explore new ways to leverage their digital asset positions. Successful crypto treasury firms treat their digital assets as dynamic financial instruments rather than static holdings. This mindset shift enables creative strategies and superior performance. What Does the Future Hold for Crypto Treasury Management? The evolution continues as more companies recognize the limitations of basic approaches. Crypto treasury firms that adapt and innovate will likely dominate the landscape. We expect to see increased specialization and more sophisticated financial products emerging. The bar for success keeps rising, pushing crypto treasury firms toward greater complexity and expertise. In conclusion, the era of simple buy-and-hold strategies for crypto treasury firms is ending. Companies must embrace complex operational approaches to survive and thrive. Those executing sophisticated strategies will likely outperform their passive counterparts significantly over time. Frequently Asked Questions What are crypto treasury firms? Crypto treasury firms manage digital assets for companies, using various strategies to maximize returns and manage risk beyond simple buying and holding. Why do crypto treasury firms need complex strategies? Complex strategies help companies extract more value from their digital assets, manage risk better, and avoid valuation discounts that affect passive holders. What makes MicroStrategy’s approach successful? MicroStrategy uses Bitcoin as collateral to issue financial instruments, creating a self-reinforcing cycle of acquisition and value creation that supports premium valuation. What are some examples of complex crypto strategies? Effective strategies include covered call programs, DeFi participation, lending operations, and using digital assets as collateral for various financial instruments. How do complex strategies affect company valuation? Companies executing sophisticated strategies typically trade at premiums, while passive holders often face valuation discounts relative to their asset values. Can small companies implement complex crypto strategies? While challenging, smaller companies can implement scaled versions of complex strategies, though they may need specialized expertise or external partners. Found this insight into crypto treasury firms valuable? Share this article with your network on social media to help others understand why complex strategies are revolutionizing digital asset management. To learn more about the latest crypto market trends, explore our article on key developments shaping Bitcoin institutional adoption. This post Revolutionary Crypto Treasury Firms: Why Complex Strategies Deliver Explosive Returns first appeared on BitcoinWorld.

Author: Coinstats

2025/11/06

Did Bitcoin fall below $100,000 because of the US government shutdown?

Did Bitcoin fall below $100,000 because of the US government shutdown?

Author: EeeVee The US government shutdown has officially entered its record 36th day. Global financial markets have plunged over the past two days. The Nasdaq, Bitcoin, tech stocks, the Nikkei index, and even safe-haven assets like US Treasury bonds and gold have not been spared. Panic is spreading in the markets, while politicians in Washington are still arguing over the budget. Is there a link between the US government shutdown and the global financial market downturn? The answer is emerging. This is not a typical market correction, but a liquidity crisis triggered by the government shutdown. With fiscal spending frozen, hundreds of billions of dollars are locked in Treasury accounts and unable to flow into the market, cutting off the lifeblood of the financial system. The real culprit behind the decline: the Ministry of Finance's "black hole" The U.S. Treasury General Account (TGA) can be understood as a central checking account opened by the U.S. government with the Federal Reserve. All federal revenue, whether from taxes or proceeds from the issuance of Treasury bonds, is deposited into this account. All government spending, from paying civil servants' salaries to defense spending, is allocated from this account. Under normal circumstances, the TGA acts as a transit point for funds, maintaining a dynamic balance. The Treasury collects the money and then quickly spends it, with the funds flowing into the private financial system, becoming bank reserves, and providing liquidity to the market. The government shutdown broke this cycle. The Treasury was still collecting money through taxes and bond issuance, and the TGA balance continued to grow. But because Congress did not approve a budget and most government departments were shut down, the Treasury was unable to spend as planned. The TGA became a financial black hole that only took in money and never gave out. Since the shutdown began on October 10, 2025, the balance of TGA has ballooned from approximately $800 billion to over $1 trillion by October 30. In just 20 days, more than $200 billion was withdrawn from the market and locked in the Federal Reserve's vault. US government TGA balance | Source: MicroMacro Some analysts point out that the government shutdown withdrew nearly $700 billion in liquidity from the market within a month. This effect is comparable to the Federal Reserve raising interest rates multiple times or accelerating quantitative tightening. When TGA (Treasury General Agreement) siphons a large amount of reserves from the banking system, banks’ ability and willingness to lend both decline significantly, and the cost of funds in the market soars accordingly. Those assets most sensitive to liquidity are always the first to feel the chill. The cryptocurrency market plummeted on October 11th, the second day of the shutdown, with liquidations approaching $20 billion. Tech stocks also teetered this week, with the Nasdaq falling 1.7% on Tuesday, and Meta and Microsoft experiencing sharp declines after their earnings reports. The decline in global financial markets is the most direct manifestation of this hidden tightening. The system is overheating. The TGA is the "cause" of the liquidity crisis, while the soaring overnight lending rate is the most direct symptom of the financial system "fever". The overnight lending market is where banks lend and borrow short-term funds to each other. It is the capillary of the entire financial system, and its interest rate is the most accurate indicator of the tightness of the money supply among banks. When liquidity is abundant, it is easy for banks to borrow money, and interest rates are stable. But when liquidity is dried up, banks begin to lack money and are willing to pay higher prices to borrow money overnight. Two key indicators clearly show how severe this high fever is: The first indicator is SOFR (Secure Overnight Financing Rate). On October 31, SOFR surged to 4.22%, marking its largest daily increase in a year. This not only exceeds the Federal Reserve's 4.00% ceiling on the federal funds rate, but also surpasses the Fed's effective funds rate by 32 basis points, reaching its highest point since the market crisis in March 2020. Actual borrowing costs in the interbank market have spiraled out of control, far exceeding central bank policy rates. Secured Overnight Funding Rate (SOFR) Index | Source: Federal Reserve Bank of New York The second, even more striking indicator is the usage of the Federal Reserve's SRF (Standing Repurchase Facility). The SRF is an emergency liquidity tool provided by the Federal Reserve to banks, allowing them to pledge high-grade bonds to the Fed in exchange for cash when they cannot borrow money in the market. On October 31, SRF usage surged to $50.35 billion, marking the highest level since the pandemic crisis began in March 2020. The banking system has fallen into a severe dollar shortage, forcing it to call the Federal Reserve for help as a last resort. Standing Repurchase Facility (SRF) Usage | Source: Federal Reserve Bank of New York The overheated financial system is transmitting pressure to the weak links of the real economy, triggering long-hidden debt bombs. The two most dangerous areas at present are commercial real estate and auto loans. According to data from research firm Trepp, the default rate for US office building CMBS (Commercial Mortgage-Backed Securities) products will reach 11.8% in October 2025, not only setting a new historical high but also surpassing the peak of 10.3% during the 2008 financial crisis. In just three years, this figure has surged nearly tenfold from 1.8%. Default rates of US office building CMBS (Commercial Mortgage-Backed Securities) | Source: Wolf Street Bravern Office Commons in Bellevue, Washington, is a prime example. This office building, once wholly leased by Microsoft, was valued at $605 million in 2020. Now, with Microsoft's departure, its valuation has plummeted 56% to $268 million, and it has entered default proceedings. This commercial real estate crisis, the worst since 2008, is spreading systemic risk throughout the financial system through regional banks, real estate investment trusts (REITs), and pension funds. On the consumer side, alarm bells have also been sounded for auto loans. New car prices have soared to an average of over $50,000, and subprime borrowers face loan interest rates as high as 18-20%, signaling a wave of defaults. As of September 2025, the default rate for subprime auto loans was approaching 10%, and the overall auto loan delinquency rate had increased by more than 50% over the past 15 years. Under the pressure of high interest rates and high inflation, the financial situation of lower-income consumers in the United States is rapidly deteriorating. From the implicit tightening of TGA (Total General Rates) to the systemic overheating of overnight interest rates, and then to the debt defaults in commercial real estate and auto loans, a clear chain of crisis transmission has emerged. The fuse unexpectedly ignited by the political gridlock in Washington is exploding the structural weaknesses that have long existed within the US economy. What do traders think about the market outlook? Faced with this crisis, the market is deeply divided. Traders stand at a crossroads, fiercely debating the future direction. Pessimists, represented by Mott Capital Management, believe the market is facing a liquidity shock comparable to that of late 2018. Bank reserves have fallen to dangerous levels, remarkably similar to the market turmoil triggered by the Fed's balance sheet reduction in 2018. As long as the government shutdown continues and the Treasury General Agreement (TGA) continues to drain liquidity, the market pain will not end. The only hope lies in the Treasury's Quarterly Refinancing Announcement (QRA) on November 2nd. If the Treasury decides to lower the TGA target balance, it could release over $150 billion in liquidity into the market. However, if the Treasury maintains or even raises the target, the market winter will become even longer. Raoul Pal, a prominent macro analyst and representative of the optimists, has proposed a compelling "painful window" theory. He acknowledges that the market is currently in a painful window of liquidity tightening, but he firmly believes that a liquidity flood will follow. Over the next 12 months, the US government will need to roll over up to $10 trillion in debt, forcing it to ensure market stability and liquidity. 31% of the US government debt (approximately $7 trillion) will mature within the next year, and with new debt issuance, the total could reach $10 trillion. | Source: Apollo Academy Once the government shutdown ends, hundreds of billions of dollars in pent-up fiscal spending will flood the market, and the Federal Reserve's quantitative tightening (QT) will technically end, or may even reverse. To prepare for the 2026 midterm elections, the US government will spare no effort to stimulate the economy, including cutting interest rates, relaxing bank regulations, and passing cryptocurrency legislation. With China and Japan also expected to continue expanding liquidity, the world will see a new round of quantitative easing. The current pullback is merely a market correction within a bull market; the real strategy should be to buy on dips. Major institutions such as Goldman Sachs and Citigroup hold a relatively neutral view. They generally expect the government shutdown to end within the next one to two weeks. Once the deadlock is broken, the huge amount of cash locked in the TGA will be quickly released, thereby easing market liquidity pressures. However, the long-term direction still depends on the Treasury's QRA announcement and the Federal Reserve's subsequent policies. History seems to repeat itself. Whether it was the balance sheet reduction panic of 2018 or the repo crisis of September 2019, both ultimately ended with the Federal Reserve surrendering and injecting liquidity back into the market. This time, facing the dual pressures of political gridlock and economic risks, policymakers seem to have once again reached a familiar crossroads. In the short term, the fate of the market hangs in the balance on the decisions of Washington politicians. But in the long term, the global economy seems to be trapped in a vicious cycle of debt, quantitative easing, and bubbles from which it cannot escape. This crisis, unexpectedly triggered by the government shutdown, may just be the prelude to the next, even larger wave of liquidity.

Author: PANews

2025/11/06

Release Date for the Most Anticipated Altcoin of Recent Months Has Been Announced

Release Date for the Most Anticipated Altcoin of Recent Months Has Been Announced

The post Release Date for the Most Anticipated Altcoin of Recent Months Has Been Announced appeared on BitcoinEthereumNews.com. The next-generation layer 1 blockchain project Monad (MON) announced that it will launch its mainnet and distribute its native token on November 24 at 17:00 (UTC). The Monad Foundation team stated in a statement that both the community airdrop and the public launch of the network will be among the most notable cryptocurrency events of this year. The Monad Foundation launched its token request portal in mid-October, where users could view their MON token allocations and connect their wallets. This portal remained active until November 3. Monad’s partner wallet platform, Privy, reported experiencing “poor performance due to high demand” on the morning the portal launched. “This is one of the most anticipated crypto launches of the past year,” said Nathan Cha, Director of Marketing at Monad Foundation. The airdrop is designed to reward early adopters of the Monad ecosystem and approximately 225,000 verified on-chain users. Recipients include users of decentralized exchanges like Hyperliquid and Uniswap, active participants in lending protocols like Aave, Euler, and Morpho, as well as users of memecoin platforms like Pump.fun and Virtuals. In addition, long-term holders of various NFT projects and DAO governance participants will also receive a share of the distribution. The Monad team stated, “We want members of our community to be important stakeholders in the future of the network because we believe they will have a transformative impact on Monad and the overall crypto ecosystem.” A portion of the airdrop was earmarked for crypto education startups like RareSkills and SheFi, and security researchers like SEAL 911 and Protocol Guild. Monad also released a limited-edition collection of “Monad Cards” featuring prominent figures on social media. Founded in 2022, Monad has raised $225 million to build an EVM-compatible network that aims to combine the speed of Solana and the decentralization of Ethereum. *This is not…

Author: BitcoinEthereumNews

2025/11/06

5 Best 100x Crypto Right Now: LivLive ($LIVE) Merges Real Actions With Big Returns

5 Best 100x Crypto Right Now: LivLive ($LIVE) Merges Real Actions With Big Returns

What if your daily routine could generate real crypto rewards? LivLive ($LIVE) is turning that vision into reality. This innovative project lets users earn tokens through real-world actions, checking in at local venues, exploring new places, or joining live events. Using its AI– and AR-powered LivLive Wristband, every verified interaction “mines” $LIVE tokens, blending lifestyle

Author: Coinstats

2025/11/06

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