- Liquid is a Bitcoin L2/sidechain, launched by Blockstream in 2018. 4,000 BTC from their bridge was taken by a whitehat yesterday (and then mostly returned).
- You can think of the Liquid network as running a fork of Bitcoin Core (called Elements). Elements added new features such as confidential transactions, other assets, BTC peg in/out, and new opcodes.
- The bug seems not to be a cryptography one but in integration logic. Bug A was there for years, was recently patched, and the patch likely introduced Bug B, which was exploited.
- I’m glad this was a whitehat, and most of the funds have been returned. Could’ve been much worse if an actual attacker.
Learnings:
- There should’ve been rate limits in place both at the swap service and peg out. There likely were some limits that didn’t trigger. Such rate limits and time delays can drastically reduce the potential damage.
- It’s clear that we’re in the age of AI-driven security wars. The new capability of these models is forcing us to discover bugs that went undetected for years. Overall, this will be a net positive, even if short-term painful.
- Both the earlier Zcash bug and this Liquid one reinforce how keeping Bitcoin simple and hardened is the right call. If anything, we should be pushing for Bitcoin ossification.
Stacks security:
- I got several questions about Stacks. We also have a bridge for sBTC. The exact Elements bug isn't applicable here, as Stacks doesn’t use Elements. For any bridges or DeFi apps, security should be priority #1. Stacks devs actively run frontier AI models (both open-source and from frontier labs) on our repos. We also have active bug bounty programs with Immunefi and others. Our regular security audit reports are also available publicly.
- Even with the emphasis on security, AI model testing, audits, etc, for over a year, Stacks devs have been pushing in the long-term direction of self-custodial solutions. The Bitcoin bonds/staking upgrade keeps the BTC deployed fully self-custodial (no bridge or smart contract risk). Further, new approaches to self-custodial lending and other areas are in the R&D stage right now.
Summary:
Running the absolute latest AI models on sensitive repos is job #1 for crypto devs. We’ll see a short-term increase in discovered bugs but get hardened systems and healthy practices in the long term.
Stacks is now heavily focusing on self-custodial solutions for bitcoin capital markets, while relentlessly doing defensive security testing/audits on existing infra.
The Liquid incident should be a wake-up call to take AI threats extremely seriously, even at Bitcoin Core (we’ve done some work on this). We should ossify Bitcoin Core and keep it as simple as possible; all new bitcoin functionality can be built on layers like Stacks. Forward!
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⚠️ Exploit breakdown:
Sept 6: @Liquid_BTC got hit through an Elements consensus / asset-validation bug. Attacker minted ~4,000 unbacked L-BTC, then used SideSwap’s normal peg-out flow to cash out 3,996.01834922 BTC from the Liquid Federation reserve.
They called it whitehat and said funds come back after every node is patched. Still sitting. No return.
📌 IOCs
Attacker:
https://mempool.space/address/bc1qgslsydz56d0ed6827hdemfmk5w2f6ldyc6wt7p
Collection wallet:
https://mempool.space/address/bc1ql4mfu6aundtkksxklfajs2h3t9nzcd6gyqjlte
Hit reserve:
https://mempool.space/address/bc1qdlld6antmv4xug242ed83q7k4rqw50cwfns38szx4qu2f4jwaxxsuhwxxr
🔍 How it played out
1. Phantom L-BTC
Liquid block 4,050,336 (2026-09-06 21:53:10 CST) was accepted by Federation / Blockstream nodes. http://mempool.space’s independent Liquid node rejected it and stalled on the prior block. Clean consensus split.
Suspect mint:
https://blockstream.info/liquid/tx/c652a1047ff549698b09242a66e20f6e9a044d5c972419342fa552b0856ba674
2. Peg-out via SideSwap
3,996.01834922 BTC paid to bc1qgsls...c6wt7p
https://blockstream.info/liquid/tx/ce4caece413cd9d444ce7ed9f54e5b328b3da5e4af301aff59a3571f76e988f2
Blockstream later said the L-BTC came from an Elements bug. SideSwap PAK + infra were not compromised.
https://x.com/side_swap/status/2096709838310928674
3. Federation pays on Bitcoin L1
https://mempool.space/tx/8db751a650ae2f12006b7e8c69a75e4df360e8afd6b9e05ae0b9fa6458a7b140
4. Funds swept
https://mempool.space/tx/85d2ca15bea33a592e73ed40c6a5da887feecf1e77f58ec7f580e00841645043
5. On-chain note
OP_RETURN: “we are whitehats. contact us on chain.”
Also told Liquid to patch first, then they’d return funds — and even sent the project fix details. Comedy/taunt meter is maxed. Whitehat claim is shaky. Reads more like buying time.
https://mempool.space/tx/83825b2135dd0abac12c9dfe17f29ab81b3427e1ae864947b0bebce5e47c3c4b
🧠 Impact
▪️ Hit: Liquid Network / Federation BTC reserve
▪️ Loss: 3,996.01834922 BTC (~$320M at the time)
▪️ Reserve left: ~197.4719 BTC. ~95% of the stack walked
▪️ Bitcoin L1: not exploited. Mainnet just executed a Federation-signed payout
▪️ SideSwap: used as the peg-out rail. Official word is PAK + systems were not breached
▪️ Other Liquid assets: USDT, DePix, RWAs were not weirdly minted, but the pause still froze transfers + liquidity
▪️ Recovery: principal still sits on the collection address. No CEX, no mixer, no bridge. Better recovery odds than a washed drain — until it’s actually returned, treat it as unrealized loss
▪️ Attacker label: self-claimed whitehat, unknown actor. Parking nine figures and then asking to talk is not standard responsible disclosure.
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THE BLOCK: Harmony announced it will sunset its mainnet and proposed migrating its native token $ONE to Ethereum, citing threats from state actors and AI agents.
The platform experienced an exploit last month that involved an unauthorized minting of 4 billion ONE tokens. In 2022, its Horizon cross-chain bridge was exploited for nearly $100 million.
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From trillion dollar markets moving onchain to builders shipping around the world, Avalanche had another huge week where scale met execution.
Here’s what happened:
🔺 South Korea's $5T+ stock market is moving onchain, with Avalanche serving as default infrastructure for direct integration with the Korea Securities Depository platform as the country builds toward tokenizing stocks, bonds and funds.
🔺 @ethena, with $USDe integrated across 100+ venues and protocols and BlackRock's ~$25T Aladdin platform, launched @EthenaPay, a global neobank built exclusively on Avalanche for saving, sending and spending USDe.
🔺 Cashlink, with €1B+ in transaction volume and 300+ successful live issuances, is bringing its institutional securities infrastructure to Avalanche, enabling financial institutions to issue and manage regulated tokenized securities onchain.
🔺 @avax's represented asset value reached $11.4B, marking another major milestone for real world assets represented across the network. ~ @MSBIntel
🔺 @aave V4 deposits on Avalanche climbed to nearly $20M, continuing to hit fresh all time highs week after week. ~ @Cointelegraph
🔺 Avalanche fees are cheaper than nearly every major chain, including Polygon, BNB, Solana, Base, and Arbitrum, and 97x cheaper than Ethereum, per @frostymetrics. ~ @BSCNews
🔺 @TheBlockCo joined Avalanche Summit NYC as an official media partner, bringing live interviews with founders and executives building onchain finance directly from the Summit floor.
🔺 @Team1NG hosted a hands on developer workshop in Port Harcourt, Nigeria, taking attendees from Avalanche fundamentals to building and deploying their own projects during a live Vibe Coding session.
🔺 @Team1BR wrapped its August university tour at UNIJORGE with 250+ students, exploring blockchain careers and new opportunities for students entering Web3.
🔺 @Team1IND announced the winners of its July Team1 Speedrun, awarding The Window, Benzo and Cloakx402 alongside five honorary mentions after a virtual build sprint and demo process.
🔺 @AvaxTeam1 Thailand brought students from 6 universities together for a university workshop, with participants now preparing for its first Team1 Thailand hackathon at Chulalongkorn University on September 26.
🔺 @AvaxTeam1 Thailand hosted its September Team Dinner, welcoming two new members while bringing the local community together for networking. ~ @mmmeijiii
🔺 @Team1VN took the stage at NFT NYC, joining The New Creator Economy panel in Times Square to explore how creators can turn community, identity and fan relationships into real onchain economic value.
🔺 Team1 UK is expanding beyond London, with its first event outside the city heading to Chesterfield on September 8, featuring Avalanche, Team1 and @tippikllabs. ~ @EmsBiz10
🔺 @Team1LatAm is bringing Avalanche + x402 to Lima, Peru, with an in person workshop focused on building autonomous onchain AI agents, DeFi, micropayments and machine to machine transactions.
🔺 @Team1TUR is bringing the Avalanche community together in Istanbul for an @avax Coffee Meetup, connecting builders and community members around Avalanche, Team1 and upcoming developer opportunities.
🔺 @Team1USA_ brought builders, founders and ecosystem enthusiasts together in Los Angeles for Crypto Friday, expanding local connections across the broader ecosystem.
🔺 @Team1BR highlighted its Bridge Party in Rio de Janeiro, bringing its community together alongside @SuperteamBR, @cashi, @aveniaio and @reapglobal.
🔺 @loopia_world wrapped Season 1, with players climbing leaderboards and competing for rewards ahead of Season 2.
🔺 Avalanche Summit NYC's full agenda is now live, bringing global finance, tokenization, stablecoins, payments, AI, DeFi, regulation and the future of Avalanche together across two packed days, September 16–17.
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reply Liquid Network confirmed a security incident, saying the funds were withdrawn via SideSwap’s Peg-out Authorization Key (PAK), while the key itself and other keys were not compromised. Exchanges have been notified and have paused or will pause LBTC deposits and withdrawals. Other Liquid assets, including USDT, DePix and RWAs, are unaffected. Liquid has temporarily disabled bridge nodes, effectively pausing the sidechain while federation members work to resolve the issue and restore normal network activity.
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Liquid Network confirmed a security incident, saying the funds were withdrawn via SideSwap’s Peg-out Authorization Key (PAK), while the key itself and other keys were not compromised. Exchanges have been notified and have paused or will pause LBTC deposits and withdrawals. Other Liquid assets, including USDT, DePix and RWAs, are unaffected. Liquid has temporarily disabled bridge nodes, effectively pausing the sidechain while federation members work to resolve the issue and restore normal network activity.
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We are aware of a security incident on @Liquid_BTC. Purported white-hat hackers have withdrawn ~4,000 BTC (~$320 million) from the Liquid Federation wallet. The @Blockstream team is working on contacting them on-chain with a signed message.
What we know so far is that the funds were withdrawn via the SideSwap PAK (Peg-out Authorization Key), but that key was not compromised, nor were any others.
Exchanges have been notified and have already paused (or will pause) LBTC deposits and withdrawals. Other Liquid assets such as USDT, DePix, and RWAs are unaffected by this security incident.
Bridge nodes have been temporarily disabled, so no new transactions can be submitted to the network. Effectively, the Liquid sidechain is paused until this issue is resolved.
Liquid wallets will be impacted, and we're sorry for any inconvenience. Federation members are actively working on resolving this so we can restore normal network activity.
You can monitor the situation via @mempool's https://t.co/M46Zhn8nlY site below:
https://t.co/B8j9u4j6i4
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Ledger CTO: 4,000 BTC Pegged Out of Liquid Bridge, “Whitehat” Claim Raises Doubts
Ledger CTO Charles Guillemet said about 4,000 BTC were pegged out of the Liquid bridge, with an OP_RETURN message stating, “we are whitehats. contact us on chain.” He argued that white hats do not drain a bridge and then solicit contact on-chain, saying the situation echoed the Ronin hack, where attackers compromised validator keys to steal roughly $625 million, while the “let’s talk” framing resembled the approach used by the Euler attacker to negotiate a return of funds after the exploit. Blockstream has responded on-chain, asking the party to contact its security team.
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Ledger CTO: 4,000 BTC Pegged Out of Liquid Bridge, “Whitehat” Claim Raises Doubts
Ledger CTO Charles Guillemet said about 4,000 BTC were pegged out of the Liquid bridge, with an OP_RETURN message stating, “we are whitehats. contact us on chain.” He argued that white hats do not drain a bridge and then solicit contact on-chain, saying the situation echoed the Ronin hack, where attackers compromised validator keys to steal roughly $625 million, while the “let’s talk” framing resembled the approach used by the Euler attacker to negotiate a return of funds after the exploit. Blockstream has responded on-chain, asking the party to contact its security team.
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DigiDollar does something no other stablecoin does. It runs natively on a UTXO chain, with no virtual machine and no smart contract platform underneath it.
Collateralized stablecoins normally need an account-based chain with a VM to deploy a contract onto. #DigiDollar is enforced by DigiByte's own consensus rules and Taproot scripts instead, at the transaction level.
What falls out of that design: no margin calls, no liquidations, no interest, and no counterparty. Your collateral stays under your keys for the term you chose, and nobody can close your position or charge you for holding it. The only cost is the ordinary network fee, which is a fraction of a cent.
No contract address, no bridge, no second layer. The chain itself does it. $DGB
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Enhance Your DeFi Strategy with Bonzo Finance's Innovations on Hedera
Recap, a look back at an earlier Hedera session. If you're navigating the exciting world of Decentralized Finance (DeFi), you've certainly come across the essential role of managing liquidity. With current market conditions testing many protocols, Bonzo Finance's recent session offered eye-opening insights into how their innovative solutions are evolving liquidity management. Bonzo Vaults stand as a beacon, surpassing $1 million in Total Value Locked (TVL), showing remarkable resilience and growth. Here's everything you need to know to stay ahead and use these tools effectively. 🔗 Key Links 📺 Watch the full livestream → Building AI Agents on Bonzo Finance (https://www.youtube.com/watch?v=P5Iw0XCr1UY) 📄 Explore Hedera Docs → Hedera Documentation (https://docs.hedera.com) 🛠� Engage with the Community → Hedera Discord (https://hedera.com/discord) 📌 TL;DR Bonzo Finance strengthened Hedera's DeFi suite with a $60M TVL in favorable markets. Bonzo Vaults exceeded $1M in TVL; the beta test is ongoing. Yield on USD-HBAR vault shows potential with up to 92.2% 30-day APY. LayerZero Stargate integration for cross-chain liquidity is forthcoming. Developers are equipped to optimize market strategies using these advancements. Bonzo Finance on Hedera: Unveiling Opportunities A New Era for DeFi Protocols Bonzo Finance's session was a testament to its continual growth in the DeFi landscape on the Hedera network, underscoring the pivotal role their solutions play in amplifying liquidity. At the heart, Bonzo Lend, their flagship lending protocol, soared with over $60 million in TVL during favorable market conditions, maintaining a solid $19 million today. Even amid market volatility, Bonzo Vaults' performance is impressive, consistently topping $1 million in TVL. This achievement reflects a strong community backing and an endorsement of the platform's capacity for optimizing returns. Bonzo Vaults: Architectural Innovation Bonzo Vaults stand out with their non-traditional approach that goes beyond the conventional ERC-4626 standard, introducing a dual-layer architecture. This strategy separates 'vault' contracts managing deposits from 'strategy' contracts that handle external engagements, providing unmatched flexibility to align strategies with market dynamics. A significant innovation came through their concentrated liquidity management strategy. Unlike the traditional methods of constant rebalancing, Bonzo Finance smartly opts for adjustments only when market shifts necessitate it, reducing resource use without sacrificing output. This approach is vital for developers looking to enhance efficiency and maximize returns strategically. Project Demo: Yield Optimization During a live demo, Bonzo Finance showcased how smart contracts in Bonzo Vaults activate yield-generating strategies. This demonstration highlighted interactions where deposits are strategized dynamically, tailored for various asset classes. Key performance metrics drove the point home: DOVU single asset vault: Offers a 7-day APY of 35%. USD-HBAR dual asset vault: Provides dual returns, with a 7-day APY of 61.9% and an impressive 30-day APY reaching 92.2%. These figures serve as powerful proof of concept and motivation for developers to delve into yield optimization strategies backed by cutting-edge technology. Key takeaway: Bonzo Vaults' architecture innovates liquidity management, reducing unnecessary actions while amplifying profitability.
The Technical Backbone of the Bonzo Ecosystem Bonzo Lend and Vaults: The Mechanics Deep within Bonzo's workings, custom smart contracts govern the functionality of Bonzo Lend and Vaults. They capitalize on automated mechanisms to optimize asset allocation strategy, maximizing the operational efficiency tied to returns. While specific APIs and contract addresses were not shared, Bonzo's session illuminated smart contract methodologies. You can adjust contract parameters regarding amount, frequency, and employed strategies, ensuring that they retain a high degree of adaptability and responsiveness. AI-Driven Rebalancing Strategies Elevating their platform, Bonzo Finance integrates advanced AI to enhance asset management. This innovation automates decision-making using real-time market data, which is a significant advancement for managing numerous liquidity positions with accuracy. Through market predictors, you can simulate and implement optimal strategies to increase yield without needing manual tweaks. This predictive AI application crafts an insightful roadmap, helping anticipate potential market maneuvers. Preparing for Cross-Chain Expansion Embracing the future, Bonzo Finance is set to integrate LayerZero Stargate, extending its liquidity capabilities across chains. This move empowers developers to orchestrate liquidity beyond Hedera's ecosystem, marking a pivotal step toward multi-chain yield optimization strategies. When this becomes reality, expect heightened interoperability through bridge contracts. This could redefine cross-chain liquidity and asset exchanges, paving the way for a new era of expansive risks and opportunities. Key takeaway: Bonzo Finance's AI strategies coupled with cross-chain expansion avenues empower you with pioneering tools for managing assets and liquidity more effectively.
Your Building Blocks on Hedera Using Bonzo's Platform for Innovation Bonzo Finance offers fertile ground for you to devise, structure, and launch novel financial services on Hedera. Here are pathways you can explore: Yield Optimization Models: Using Bonzo Vaults, you can craft sophisticated models to boost yields even in fluctuating markets. Existing strategies act as a template, while you adapt to market shifts to maximize high-yield opportunities. Cross-Chain Liquidity Solutions: As LayerZero Stargate materializes, use Hedera as a principal node in your DeFi endeavors, expanding beyond traditional boundaries into a cross-chain liquidity flow system. AI-Powered Rebalancing: Bonzo equips you with AI tools that streamline rebalancing efforts, reducing costs while addressing liquidity drifts. Design a decentralized protocol that adapts its strategies automatically. Efficient Building with Bonzo's Features Kickstart your DeFi projects on Bonzo Finance with these tactical steps: Conduct an in-depth review of Bonzo's smart contract structures to absorb best vault creation practices. Use performance data from operational vaults to polish your strategy, especially focusing on untapped assets and their combinations. Develop a prototype using Bonzo's strategies, ensuring you draw on comprehensive yield optimization potential. Gear up your infrastructure for the imminent cross-chain capabilities to exploit liquid access and performance gains. With Bonzo's development landscape, rapid deployment is facilitated through pre-fabricated layers, minimizing setup times and allowing you to bolster functionality that directly impacts user interaction. Key takeaway: Engaging Bonzo's ecosystem offers dynamic possibilities for crafting innovative DeFi solutions anchored in Hedera's ever-evolving infrastructure. Resources to Deepen Your Engagement Hedera Documentation: Explore Technical Guides (https://docs.hedera.com) Join the Hedera Community: Connect on Discord (https://hedera.com/discord) Official Livestream Source: Building AI Agents on Bonzo Finance (https://www.youtube.com/watch?v=P5Iw0XCr1UY) Are you using Bonzo Finance's advanced capabilities in your Hedera project? We'd love to hear how you're building on this transformative DeFi platform. Showcase your projects and join the conversation. Understanding Bonzo Finance's Ecosystem Components of the Bonzo Ecosystem The Bonzo Finance ecosystem is robust and strategically designed to enhance liquidity on the Hedera distributed ledger. As a builder, understanding the core components of Bonzo will empower you to use its tools for your decentralized applications. The ecosystem includes: Bonzo Lend Protocol: This protocol is central to Bonzo's offerings, enabling lending and borrowing within the Hedera ecosystem. It was developed by forking the Aave V2 protocol, a well-established lending protocol in the Web3 space. The team had to modify the contracts for compatibility with Hedera Token Service (HTS) and ensure seamless integration with SaucerSwap and other Hedera-native services. Bonzo Vaults: These provide automated yield optimization through liquidity provisioning on platforms like SaucerSwap. The vaults employ harvester bots for automatic rebalancing and yield compounding, allowing users to maximize their returns effortlessly. Bonzo Bridge: Integrating with LayerZero's Stargate protocol, Bonzo Bridge aims to facilitate cross-chain liquidity. This feature is expected to be a game-changer for Hedera, allowing liquidity to flow seamlessly between chains and expanding the reach of your DeFi applications. Understanding these components will help you optimize your strategies and build more efficient decentralized solutions on Hedera. The Role of Harvester Bots One of the standout features of Bonzo Finance is its use of harvester bots within the Bonzo Vaults. These bots are crucial for maintaining and maximizing your yield in a hands-off manner. Here's how they work: Automated Yield Compounding: Harvester bots automatically compound the yield derived from liquidity pools, ensuring that your returns are continually reinvested to maximize profitability. Continuous Rebalancing: The bots monitor market conditions and perform continuous rebalancing of assets within the vaults. This means your investment remains optimized for the highest possible returns without manual intervention. Seamless User Experience: With the automation provided by harvester bots, you can focus on other aspects of your DeFi strategy. The bots handle the complexity of yield farming, so you don't have to. By leveraging harvester bots, Bonzo Finance simplifies the yield optimization process, making it accessible to both novice and experienced DeFi participants.
Building AI Agents with Bonzo Finance Integrating AI Agents in DeFi Bonzo Finance's integration with AI agents represents a forward-looking approach to decentralized finance. As a developer, you can enhance your DeFi applications by incorporating AI-driven strategies that automate decision-making and optimize financial interactions. Contextual AI Prompts: When building AI agents, it's crucial to provide contextual prompts. For instance, using Bonzo's comprehensive data on liquidity and yield, AI agents can make informed decisions that align with market trends and user preferences. Agentic Coding Frameworks: Tools like Claude code and Codex allow for the development of smart AI agents that can interact with Bonzo's protocols. These frameworks help automate complex tasks, such as optimizing liquidity pools or executing strategic trades based on predictive analytics. Enhanced User Engagement: AI agents can enhance user engagement by providing personalized financial advice and real-time insights into their investment activities. This leads to a more interactive and educational DeFi experience. By embedding AI agents within your DeFi solutions, you can offer users a smarter, more dynamic financial ecosystem that adapts to their needs and the evolving market landscape. Practical Steps to Implement AI Agents If you're ready to integrate AI agents with Bonzo Finance, here's a practical guide to get started: Understand Bonzo's Protocols: Gain a deep understanding of Bonzo's lending, vault, and bridge protocols. This knowledge will inform your AI agent's decision-making process. Select an AI Framework: Choose an agentic coding framework like Claude code or Codex that aligns with your project requirements. Ensure the framework supports seamless integration with Hedera's ecosystem. Develop Contextual Prompts: Create prompts that provide your AI agents with the necessary context to make informed decisions. This includes data on liquidity, yield rates, and market conditions. Test and Iterate: Begin by testing your AI agents in a controlled environment within the Bonzo ecosystem. Gather feedback and iterate on the prompts and algorithms to enhance performance. Deploy and Monitor: Once satisfied with your AI agents' performance, deploy them within your DeFi application. Continuously monitor their interactions and make adjustments as needed to ensure they align with user goals and market changes. By following these steps, you can successfully deploy AI agents that add value to your DeFi applications and provide users with a more innovative financial experience.
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quote: Shield Swap is integrating Hyperlane to bring ETH, SOL, and wBTC in from Ethereum and Solana.
Confidential trading accelerates with Hyperlane.
Get Early Access >> https://shield.fi https://x.com/ShieldFi/status/2095633017444433922 | Today, we are announcing our integration with @hyperlane, the open interoperability framework connecting more than 150 blockchain networks.
Shield Swap is built for confidential trading. Participant identities stay off the public ledger, portfolio balances remain encrypted to the participant’s keys, and trades do not expose the participant’s full activity to public observers. Each transaction also creates an encrypted compliance record that can be disclosed to authorized parties when required.
But confidential execution is only useful if participants can get their assets into the venue without rebuilding their treasury operations around a new network.
Hyperlane solves that access problem.
Its framework supports asset transfers across EVM, Solana, Cosmos, and other virtual machine environments. A single Hyperlane integration can connect applications and assets across more than 150 networks. For Shield Swap participants, that means assets can move into the venue from the networks where they already sit.
Hyperlane also gives applications control over how cross-chain messages are verified. Its Interchain Security Modules allow developers to choose and combine security models for their deployment. Validator sets and signature thresholds can be configured around the requirements of the application rather than inherited from a single bridge-wide model.
Transfers into Shield Swap remain visible on their origin networks.
Confidentiality begins when the assets are shielded inside the venue. From that point, the participant’s identity, balances, and trading activity stay out of public view. View keys allow the participant to disclose the relevant records to authorized parties without making those records public.
During the beta period, the initial Hyperlane routes will support ETH on Ethereum, SOL on Solana, and wBTC on Ethereum.
Early access is available to a limited number of beta participants at https://t.co/8a0TjYWHfe.
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quote: 2026 has basically been one long shipping season for the Starknet ecosystem.
Four months left to go.
https://x.com/StarkWareLtd/status/2095107659410051099 | Shipping season never ends 🥷
1⃣ StarkWare executed the first ever quantum-safe Bitcoin transaction
The first quantum-safe Bitcoin transaction in history was executed and mined on Bitcoin Mainnet using Avihu Levy’s QSB design.
> QSB allows Bitcoin holders to move funds into a quantum-safe setup today, without changing the Bitcoin protocol or requiring a fork.
> The transaction proved that the design can already work on Bitcoin Mainnet.
> While QSB is not intended as Bitcoin’s optimal long-term post-quantum solution, it provides holders with a last-resort protection mechanism without waiting for protocol-level consensus.
> The milestone builds on years of quantum-security research from StarkWare and the Starknet ecosystem.
2⃣ More builders than ever are shipping privacy primitives
StarkWare launched the STRK20 Private Sprint to accelerate the development of privacy applications on Starknet.
> Over 200 builders are now working on more than 170 projects spanning AI, trading, DeFi strategies, gaming, and more.
> The sprint was extended by one week, with builders able to join until September 7, and anyone can join.
> StarkWare also open-sourced PriPay, a private payroll system enabling recurring or one-time salary payments that remain hidden from block explorers while preserving an onchain audit trail.
3⃣ Starknet revenue is going back into the ecosystem
For the first time, StarkWare delegated 25M STRK generated from Starknet sequencer revenue back into the ecosystem.
> The 25M STRK is being used to strengthen projects and operators contributing to Starknet through delegation.
> Round 3 of the StarkWare Delegation Program was also executed, with selected validators receiving between 5M and 20M STRK each.
> The new structure comes with higher expectations around validator performance, reliability, testing, and active ecosystem participation.
4⃣ The ecosystem keeps shipping
> Realms is building an L3 on top of Starknet for Blitz and Eternum, targeting significantly lower costs and better UX.
> SuperVega launched its public beta, enabling one-tap options trading on BTC, ETH, ZEC, and STRK, with end-of-year expiries now available.
> Extended added 22 new RWA markets during August, launched Chase Orders, and unveiled its vision to become a regulated, globally distributed onchain trading platform, starting with the EU.
> Offmarket launched private Polymarket trading on Starknet.
> Chance launched an intent verification layer for AI agents, with settlement proofs anchored on Starknet and native escrow wallets.
> Omnisea integrated Starknet as the first non-EVM chain supported by its LayerZero-powered bridge.
> Gaffer launched a new season of its fantasy football app.
> VeilX went live on testnet, enabling anonymous swaps between regulated ERC-3643 assets through an Ekubo extension.
> Erebus is building a private trading layer where AI agents can negotiate and trade privately.
5⃣ The numbers keep improving
> 1.5B STRK are now staked on Starknet, representing ~22% of the circulating supply
> 10M STRK are now being staked privately through Endur
> Starknet apps generated $40M in revenue over the past year
> Starknet revenue is up 1,200% YoY, with Starknet now operating profitably
> Nearly 200 builders are currently shipping new privacy primitives
Can’t stop, won’t stop.