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.

15211 Articles
Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
Paxos’ 300 Trillion PYUSD Mint May Expose Centralization Risks and Test DeFi Resilience

Paxos’ 300 Trillion PYUSD Mint May Expose Centralization Risks and Test DeFi Resilience

The post Paxos’ 300 Trillion PYUSD Mint May Expose Centralization Risks and Test DeFi Resilience 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 → Paxos accidentally minted 300 trillion PYUSD during a 22-minute incident described as a “technical error.” The tokens were burned before circulation, and on-chain records plus protocol risk controls prevented any measurable loss to DeFi users. Paxos minted 300 trillion PYUSD by mistake, then burned the supply within 22 minutes. On-chain transaction records and protocol responses (Aave market pause) contained risk exposure in real time. Industry observers note this exposed centralized issuance risks and the need for stricter mint controls and multi-sig safeguards. Paxos minted 300 trillion PYUSD in a 22-minute error; learn how on-chain checks and DeFi protocols contained risk — read analysis and next-step recommendations. One human slip, enormous supply glitch — a real-time stress test for stablecoins and DeFi controls. COINOTAG recommends • Professional traders group 💎 Join a professional trading community Work with senior traders, research‑backed setups, and risk‑first frameworks. 👉 Join the group → COINOTAG recommends • Professional traders group 📊 Transparent performance, real process Spot strategies with documented months of triple‑digit runs during strong trends; futures plans use defined R:R and sizing. 👉 Get…

Author: BitcoinEthereumNews
Vietnam’s Surge in Credit Growth Expected to Boost Crypto Investments

Vietnam’s Surge in Credit Growth Expected to Boost Crypto Investments

Vietnam’s credit growth is targeted at 19%-20%, fueling investments in riskier assets like crypto. The Vietnamese government’s policies support legal recognition of digital assets as property. Vietnam’s young, tech-savvy population is a major driver behind its growing crypto market. The central bank’s liquidity push could increase capital flow into crypto and riskier assets. Vietnam is [...] The post Vietnam’s Surge in Credit Growth Expected to Boost Crypto Investments appeared first on CoinCentral.

Author: Coincentral
Florida Takes Second Shot at Bitcoin Reserve After First Bill Collapsed

Florida Takes Second Shot at Bitcoin Reserve After First Bill Collapsed

TLDR Florida lawmaker Webster Barnaby filed HB 183, allowing the state to invest up to 10% of public funds in digital assets including Bitcoin, crypto ETFs, NFTs, and blockchain products The new bill expands beyond the Bitcoin-only focus of the failed HB 487 from June 2024 and adds stricter custody, documentation, and fiduciary standards If [...] The post Florida Takes Second Shot at Bitcoin Reserve After First Bill Collapsed appeared first on CoinCentral.

Author: Coincentral
These 4 Tokens Could Turn $2,000 Into More Than Cardano Ever Did

These 4 Tokens Could Turn $2,000 Into More Than Cardano Ever Did

The post These 4 Tokens Could Turn $2,000 Into More Than Cardano Ever Did appeared first on Coinpedia Fintech News It could have seemed like a brave move that paid out if you had invested $2,000 in Cardano years ago. Early investors in ADA had transformative gains, but that may not be the case again. The market is evolving fast, and new tokens are bringing a mix of real utility, energy, and viral power that …

Author: CoinPedia
Europe’s Crypto Adoption Accelerates with MiCA and Russia’s Massive $376B Lead

Europe’s Crypto Adoption Accelerates with MiCA and Russia’s Massive $376B Lead

Europe’s crypto sector is undergoing one of its most transformative phases. According to Chainalysis’s report, the region has seen significant regulatory and market changes from July 2023 to June 2025. The data paints a picture of a maturing market where institutional growth, decentralized finance (DeFi), and regional regulations like MiCA are redefining digital asset adoption. […]

Author: Tronweekly
A Resilient Digital Asset for the Long Term

A Resilient Digital Asset for the Long Term

The post A Resilient Digital Asset for the Long Term appeared on BitcoinEthereumNews.com. In today’s “Crypto for Advisors” newsletter, Josh Olszewicz from Canary Capital breaks down Litecoin from its history to its growth. Then, in “Ask an Expert”, Billy Luedtke of Institution, answers questions about decentralized finance and its growth. Thank you to our sponsor of this week’s newsletter, Grayscale. For financial advisors near Denver, Grayscale is hosting an exclusive event, Crypto Connect, on Thursday, October 23. Learn more. – Sarah Morton Litecoin: A Resilient Digital Asset for the Long Term LTC$91.92 is one of the oldest and most established cryptocurrencies still in active use. Created in October 2011 by former Google engineer Charlie Lee, Litecoin was launched as a source-code fork of Bitcoin. While Bitcoin pioneered decentralized digital money, Litecoin sought to improve on its design by offering faster settlement times, lower transaction costs, and a larger supply. For this reason, LTC$91.92 is often referred to as “the silver to bitcoin’s BTC$108,774.71 gold.” Key Technical Features Litecoin shares Bitcoin’s proof-of-work (PoW) foundation but differs in several critical areas. Its block time is 2.5 minutes, compared to Bitcoin’s 10 minutes, allowing for quicker transaction confirmations. The maximum supply is 84 million coins, four times larger than Bitcoin’s 21 million, which makes individual units more accessible. Instead of Bitcoin’s SHA-256 mining algorithm, Litecoin employs Scrypt, which was designed to make mining more broadly accessible before the advent of application-specific integrated circuits (ASICs). Since its inception, Litecoin has maintained uninterrupted network uptime, a rarity in the blockchain sector. This reliability, paired with low transaction fees that average under 10 cents, has positioned litecoin as a practical medium of exchange rather than primarily a store of value. Innovation and Adoption Litecoin has also been an early testing ground for key blockchain innovations. In 2017, it became the first major network to activate Segregated Witness (SegWit), a scaling…

Author: BitcoinEthereumNews
300 Trillion PYUSD Mistakenly Minted: The Stablecoin Governance Crisis Behind Paxos’ “Fat Finger”

300 Trillion PYUSD Mistakenly Minted: The Stablecoin Governance Crisis Behind Paxos’ “Fat Finger”

Author: JAE In the early morning hours of October 16th, the crypto market was rocked by a dramatic incident when stablecoin issuer Paxos abruptly minted and destroyed 300 trillion PayPal USD (PYUSD), leaving the market in a state of confusion. This "blunder" was more than just a simple human error; it also vividly exposed the inherent vulnerabilities of centralized stablecoins in terms of technical governance and internal controls. Paxos accidentally issues 3 million PYUSD tokens in the biggest "blunder" in history The incident began with an internal operation of Paxos. According to its transaction records on Etherscan, Paxos was originally preparing to transfer 300 million PYUSD between different wallets, but accidentally destroyed it. 300 million PYUSD represents over 11% of the total circulating supply, a significant amount. However, because destruction essentially reduces circulating supply, it only results in a short-term contraction in supply and has no impact on the anchoring mechanism. However, this accidental destruction was only the beginning of a catastrophic error that would follow. While Paxos was attempting to correct its error, a "fat finger" error (a parameter input error typically manifested by extra zeros) occurred, leading to the accidental minting of 300 trillion PYUSD. According to CoinMarketCap, PYUSD's current market capitalization is only approximately $2.6 billion, while the amount of erroneous minting represents 113,250 times the circulating supply, a stark contrast. If priced per dollar, the total amount of erroneous PYUSD minting is equivalent to more than twice global GDP, far exceeding US M1/M2 and the entire crypto market capitalization. This means that even if Paxos maintained sufficient reserves, facing a 300 trillion supply would instantly reduce its collateralization ratio to zero, rendering users' PYUSD worthless, leading to a collapse in market confidence and a chain reaction. Furthermore, if this massive amount of PYUSD were used for on-chain transactions and captured and exploited by arbitrage bots or market makers, even for just a few seconds, it would severely unbalance the liquidity pool on the DEX and cause a rapid decoupling of the PYUSD price. In the AMM model, this sudden surge in supply would cause the price of PYUSD to plummet relative to other assets, leading to a significant decoupling. Aave, a leading DeFi lending protocol, immediately froze the PYUSD market after the issue occurred to prevent potential risks. Chaos Labs founder Omer Goldberg also posted on the X platform that due to the unexpectedly high minting and burning of PYUSD, related trading would be temporarily frozen. To avoid catastrophic consequences, Paxos was forced to take another destruction action, removing the accidentally minted 300 trillion PYUSD supply from its wallets to prevent the potential devastation to the ecosystem caused by its minting error. After the incident subsided, Aave also unfroze the PYUSD market. Although the Paxos generation issue was merely an internal technical failure, its emergency intervention process also reflects the paradox of centralized stablecoins: even if the issuer has sufficient asset reserves and absolute authority to mint/destroy coins, if there are flaws in technical governance and internal controls, its "God-level authority" over supply may lead to a systemic crisis. Internal risks have become the biggest single point of risk. How should stablecoin issuers optimize? Paxos has always used its regulatory and compliance status as a selling point, viewing this as a competitive moat against other stablecoin issuers, particularly Tether, which has less regulatory transparency. However, this incident has raised questions in the market: how could a regulated entity, claiming to be highly compliant, allow such a simple parameter input error to pass through its numerous security checks? This technical issue has also made the market realize that while fiat currency reserves and regular audits are important, they cannot eliminate technical governance and internal control risks. This "blunder" may also erode Paxos's regulatory advantages, making its technical risk profile somewhat similar to that of its less regulated competitors. Coincidentally, Tether also accidentally minted and destroyed approximately $5 billion in USDT in 2019. However, the sheer scale of Paxos's error has sparked wider concerns. This further demonstrates that fiat-backed stablecoins are not invulnerable, potentially raising two additional technical governance and internal control issues. During the error correction process, Paxos's "God's power" saved PYUSD from an instant collapse. To maintain a 1:1 peg, fiat-backed stablecoins must have absolute authority to mint and burn coins. However, this necessary evil also presents the greatest single point of risk. To address the associated operational risks, stablecoin issuers should establish stricter internal control processes. However, this also means higher operating costs and a higher degree of centralization. Stablecoin issuers face a dilemma: how to maintain rapid intervention (centralization) while minimizing the risk of human error (decentralization/automated processes)? This challenge will become a key issue in the future of stablecoin governance. In response to this "oolong incident" caused by a parameter input error, stablecoin issuers such as Paxos must implement fundamental reinforcement at the technical governance and internal control levels: 1) Outlier detection and time locks should be set up at the technical level, and an outlier detection mechanism must be embedded at the smart contract level. For example, any single minting or destruction transaction that exceeds a certain threshold of the total reserve (such as 10%) must initiate an hourly cooling-off period, or be automatically terminated by the system and wait for manual approval; 2) Multi-signatures should be mandatory for internal controls, and minting/destruction operations must adopt a strict multi-signature mechanism, requiring at least three executives with different functional backgrounds (such as technology, finance, and compliance) to jointly approve and sign to ensure the verification of the input parameters. Although Paxos's "fat finger" did not cause a market collapse, it revealed systemic risks and sounded a wake-up call for all issuers: the management of centralized stablecoins must go beyond simple reserve transparency to include technical governance and internal controls to ensure that they will no longer arouse market doubts due to low-level parameter input errors.

Author: PANews
Privacy 2.0: Encrypted Computing’s Blockchain Revolution

Privacy 2.0: Encrypted Computing’s Blockchain Revolution

The post Privacy 2.0: Encrypted Computing’s Blockchain Revolution appeared on BitcoinEthereumNews.com. One of the core tenets of blockchain protocols has been the provision of privacy for users, even if the chains are publicly verifiable and relatively transparent. This is becoming increasingly important as personal privacy rights seem to be eroding, evidenced by the European Union’s recent push for a chat control law that would allow mass scanning of private communications and encrypted messages. The latest episode of The Clear Crypto Podcast delves into the importance of privacy-preserving protocols in conversation with Yannik Schrade, co-founder and CEO of Arcium. Schrade unpacks the privacy revolution: encrypted computing, zero-knowledge proofs and multiparty magic that lets blockchains handle sensitive data like medical records and finance without leaks or trusted middlemen. Privacy 2.0 Schrade says the industry is gradually moving toward an era he calls “Privacy 2.0,” where blockchains are powered by an encrypted shared state. “That means everybody can encrypt their data, be it transaction data, be it medical records, anything. We can compute over all of this encrypted data collectively. We can build encrypted order books for people to trade privately. We can build private lending markets to have privacy when using all of those DeFi applications,” Schrade said. Related: Blockchain analytics are becoming AI-powered: Here’s why it matters The Arcium CEO said the possibility of encrypted shared states would not be just a major unlock for the cryptocurrency ecosystem, but for society as a whole. “Data can now flow through encrypted fibers, globally. That’s is the future that we are moving towards, and that really is the frontier of both privacy and computing. Schrade added that the Web2 internet that we know and use has been held back by single trusted entities. Cryptography and multiparty computation now allow people and AI to process and gain outputs from data without compromising or accessing the…

Author: BitcoinEthereumNews
Webster Barnaby Files Revised Bill That May Let Florida Invest Up to 10% in Bitcoin and Crypto With New Custody Standards

Webster Barnaby Files Revised Bill That May Let Florida Invest Up to 10% in Bitcoin and Crypto With New Custody Standards

The post Webster Barnaby Files Revised Bill That May Let Florida Invest Up to 10% in Bitcoin and Crypto With New Custody Standards 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 → Florida HB 183 proposes to allow the State Board of Administration and certain public entities to invest up to 10% of eligible funds in digital assets, expanding beyond Bitcoin to include crypto ETFs, securities and NFTs while adding enhanced custody, documentation and fiduciary standards. HB 183 would permit up to 10% of certain public funds to be invested in digital assets, effective July 1, 2026. New provisions expand eligible assets beyond Bitcoin to crypto ETFs, securities, NFTs and other blockchain-based products with added custody and audit requirements. Similar state measures passed only in Arizona, New Hampshire and Texas in 2025; New Hampshire’s law limits exposure to 5% for assets with market caps above $500 billion. Florida HB 183: lets state funds invest up to 10% in digital assets including Bitcoin and crypto ETFs, adds custody and audit rules — read the bill overview. COINOTAG recommends • Professional traders group 💎 Join a professional trading community Work with senior traders, research‑backed setups, and risk‑first frameworks. 👉 Join the group → COINOTAG recommends • Professional traders group 📊 Transparent performance, real…

Author: BitcoinEthereumNews
Europe’s Crypto Market Sees Robust Growth and Regulatory Transformation

Europe’s Crypto Market Sees Robust Growth and Regulatory Transformation

The post Europe’s Crypto Market Sees Robust Growth and Regulatory Transformation appeared on BitcoinEthereumNews.com. Luisa Crawford Oct 16, 2025 07:39 Europe’s crypto market experiences significant growth, driven by regulatory changes and increased adoption in Russia and the UK. The MiCA framework plays a crucial role. Europe has solidified its position as a dominant force in the global cryptocurrency market, exhibiting remarkable growth and resilience from July 2023 to June 2025. The region’s transaction volumes reached a peak of $234 million in December, underscoring Europe’s status as a mature crypto market characterized by strong institutional presence and widespread retail adoption, according to Chainalysis. European Crypto Market Dynamics The European Economic Area (EEA), consisting of countries like Germany, France, and Italy, alongside Russia and the UK, has become a hub of crypto activity. Russia has emerged as the leading market, with $376.3 billion in crypto transactions, outpacing the UK, which recorded $273.2 billion. This shift highlights a narrowing gap between traditionally dominant and smaller markets such as Germany, Ukraine, and France, which are now achieving comparable levels of crypto activity. Network Effects and Regional Growth Europe’s crypto market growth is characterized by strong network effects. Larger markets like Germany and Russia are not plateauing but continuing to expand, benefiting from enhanced liquidity and institutional participation. Germany’s 54% growth reflects its emergence as a preferred destination for crypto-native firms, while Ukraine and Poland also show significant growth due to grassroots adoption and remittance flows. MiCA’s Impact on the European Landscape The introduction of the Markets in Crypto-Assets (MiCA) framework has transformed Europe’s regulatory environment. MiCA aims to harmonize rules across the EEA, promoting market integrity and financial stability. Despite some jurisdictions allowing transitional periods until 2026, MiCA has spurred broader digital asset engagement, with traditional financial institutions exploring crypto services. The Rise of EUR Local Stablecoins MiCA’s impact is…

Author: BitcoinEthereumNews