Pyth Networks API overhaul threatens to freeze unpatched smart contracts across 300 DeFi protocols

Crypto price oracle Pyth Network missed its documented 16:00 UTC cutover deadline on Aug. 26, adding a new requirement for developers who call its Hermes price-delivery service directly: their requests now need an API key.  Related Asset Pyth Network #92 PYTH · $0.05 24-hour change: down 12.51% Price history is not available. 24H Down 12.51% 7D Up 10.90% 30D Up 15.83%  Under Pyths migration guide, people who use a protocol that already integrates the oracle dont need to take direct action.  Pyth documented that the existing hermes.pyth.network address would redirect to its upgraded backend, with authentication required after the deadline. Developers could also move directly tohttps://pyth.dourolabs.app/hermes, passing the key as a bearer token or SDK access token.  Pyth said the routes and response shapes did not change.  Pyths Aug. 26 cutover required direct Hermes callers and Sui integrators to update authentication or configuration, while protocol end users needed no action.Where incomplete Pyth migrations can fail  Pyths upgraded Hermes endpoint serves payloads intended for the upgraded Pyth Core contract. The guide warns that changing the endpoint without changing the contract generation, or doing the reverse, can leave an application unable to verify price updates.  An application without the required key may not complete authenticated Hermes requests, while one

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Tokenized deposits could raise US credit costs: Dallas Fed economists

Tokenized deposits could make bank funding less stable and raise credit costs for US households and businesses, according to an analysis by two economists at the Federal Reserve Bank of Dallas.  Economists Rosie Levy and Srini Ramaswamy said instant settlement could allow depositors seeking higher yields to switch banks more quickly. They said programmable deposit tokens and agentic artificial intelligence could automate the transfers, shortening the time that deposits remain at individual banks and making them more sensitive to interest rates.  The economists estimated that if deposits became 10% more sensitive to interest rates, banks capacity to hold long-term loans and other assets could fall by about $700 billion. In a separate scenario, deposits remaining at banks for 10% less time could reduce that capacity by about $580 billion. Both figures are expressed in 10-year equivalents and do not represent direct reductions in lending.  The calculations are scenarios rather than forecasts and do not represent dollar-for-dollar reductions in bank lending. They come as US banks build shared blockchain networks designed to move tokenized deposits around the clock while keeping customer funds within the regulated banking system.  Banks develop networks for tokenized deposits  On Tuesday, 39 US state banking associations formed the BankChain Alliance to develop

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Bitcoin ETF inflows slow to $232M as BTC holds under $80K

US-listed spot Bitcoin exchange-traded funds (ETFs) drew $232.1 million in net inflows on Wednesday, slowing from the previous day while extending their inflow streak to eight trading days.  The latest inflow was down about 26% from Tuesdays $314.4 million and marked the smallest daily total since Aug. 18, according to SoSoValue data.  The eight-session streak has attracted about $2.8 billion, cutting year-to-date net outflows to about $2.03 billion. Cumulative net inflows rose to $54.6 billion, while total net assets reached $98.6 billion.Daily inflows in US spot Bitcoin ETFs since Aug. 17. Source: SoSoValue  The slowdown came as Bitcoin stalled after briefly climbing above $80,000 on Tuesday. Bitcoin traded at about $78,759 at publishing time, down 0.3% over the past 24 hours, according to CoinGecko.  Despite Bitcoins stalled price action, crypto market sentiment strengthened on Thursday. The Crypto Fear & Greed Index rose to 71 from 65 a day earlier, remaining in “Greed” territory, according to Alternative.me.The Crypto Fear & Greed Index. Source: Alternative.me  Among altcoin funds, US spot Ether ETFs also recorded an eighth consecutive day of inflows on Wednesday, attracting $192.4 million.  US-listed spot XRP ETFs attracted $28.1 million on Wednesday, their biggest daily inflow since Jan. 5, according to SoSoValue. Cumulative net inflows reached

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HYPE whale adds $24M as a16z link remains unverified

A cluster of 12 wallets deposited 36 million USDC into Hyperliquid during the 24 hours ending Aug. 27 and used about $24 million to purchase HYPE, according to on-chain analyst EmberCN.  The wallets acquired 282,090 HYPE at an estimated average price of $81.50. EmberCN described the cluster as “suspected” of being connected to Andreessen Horowitz, or a16z, but the venture capital firm has not confirmed that attribution.  Public blockchain records can verify individual transfers, purchases and staking transactions. They cannot establish the legal owner of an address without additional evidence linking the wallet to a person or company.  HYPE wallets still hold $12 million in USDC  The cluster had converted approximately two-thirds of its newly deposited USDC into HYPE when EmberCN published the analysis. About $12 million remained available within the reported group of wallets.  The addresses appeared to divide purchases across multiple accounts rather than execute one large market order. Such activity can reduce the visibility and price movement associated with a single transaction, although the wallets exact execution strategy was not confirmed.  Three addresses cited by the analyst show Hyperliquid transaction histories that readers can inspect through Hypurrscan: one, two and three.  However, EmberCN did not publish a complete ownership proof covering all 12 addresses.

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Bitcoin and Ether ETF Inflows Hit 2026 High as Term Is Exploited

U.S. spot Bitcoin and Ethereum exchange-traded funds posted their strongest combined week of net inflows in 2026 in the week ending August 21, drawing roughly $2.6 billion as trading activity accelerated. Two days later, Term Labs confirmed that a governance exploit had affected its Term Finance vaults, with blockchain-security firms estimating losses of about $8.5 million.  Bitcoin and Ether ETFs post 2026s strongest inflow week  The Block reported that U.S. spot Bitcoin ETFs took in approximately $1.9 billion in net inflows during the week ending August 21. Spot Ethereum ETFs added $697.2 million, making it the strongest weekly inflow period of 2026 for both product categories.  The combined total was about $2.6 billion. ETF trading volume across the Bitcoin and Ethereum products reached approximately $29 billion over the same period, a sharp increase in market activity alongside the inflows.  Bitcoin briefly traded above $79,000 during the week, while Ether traded near $2,423, according to the report. Those price points provide the immediate market backdrop for the fund flows, although the reported weekly figures do not by themselves establish why investors committed capital or how long the demand will persist.  The figures also put the Bitcoin and Ether markets in focus beyond their underlying spot venues.

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Bitcoin Breaks Above $80,000 Again After 100 Days, While the Fed Makes Successive Moves: “Bull Market Returns Fast” OR “Dead Cat Bounce, Run While You Can”?

Introduction  After exactly 100 days, Bitcoin reclaimed the $80,000 level on August 24, and surged further to $81,272 on August 25 (according to Binance data) before pulling back.  Following its retreat from the yearly high, Bitcoin spent nearly three months moving sideways and building a bottom within a narrow $57,000–$68,000 range. Then, within just a few trading days, it exploded higher, posting a monthly gain of more than 28%.  However, just three weeks earlier, in early August, Bitcoin was still hovering around the $64,000–$66,000 range. The 30-day average of active addresses once fell to 609,000, approaching levels seen during the 2018 bear market. Within only a few days, market sentiment shifted from “fear” to “extreme greed” — the Crypto Fear   Volatility dropped to the lowest level of the year;  The market entered a state of “bulls and bears locked in battle, while retail investors stayed on the sidelines.”  However, two important undercurrents emerged during this consolidation phase:  1. OTC Trading Activity Increased Significantly  Long-term investors, including early Bitcoin whales and institutions linked to publicly listed companies, continued accumulating spot Bitcoin around the $60,000 level, quietly rebuilding positions.  2. Short Positions Continued to Build in Derivative Markets  A growing number of traders bet that Bitcoin would break below the lower

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SoftBank eyes majority stake in OpenAI-backed 1X at $6 billion valuation

SoftBank has entered talks to acquire a majority stake in OpenAI-backed humanoid robot developer 1X Technologies in a deal that could value the startup at about $6 billion.  SummarySoftBank is reportedly in talks to acquire a majority stake in humanoid robot maker 1X Technologies at a valuation of about $6 billion.OpenAI invested in 1X in 2023 and discussed potentially acquiring the robotics startup last year.The talks follow SoftBank‘s $5.4 billion agreement to acquire ABB’s robotics business, which is expected to close in 2026.SoftBank has also committed tens of billions of dollars to OpenAI while expanding its investments in AI infrastructure and robotics.  The Information reported on Aug. 26, citing people familiar with the discussions, that SoftBank is negotiating for control of the robotics company, though talks remain ongoing and the terms could still change. Reuters said it could not independently confirm the report, while SoftBank declined to comment and 1X did not immediately respond to its request for comment.  A potential agreement would bring 1X under a Japanese investment group that has committed tens of billions of dollars to artificial intelligence companies and infrastructure while increasing its exposure to OpenAI.  OpenAI already has a direct connection to 1X. The ChatGPT developer invested in the

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CFTC warns crypto ATM scams drove $388M in losses

The Commodity Futures Trading Commission warned U.S. consumers on Aug. 26 about scammers using crypto ATMs, unfamiliar applications, gift cards and couriers to obtain payments that are difficult to reverse.  The warning follows FBI data showing more than 13,400 cryptocurrency kiosk complaints and over $388 million in reported losses during 2025. Complaints rose 23% from 2024, while reported losses increased 58%.  The FBI cautioned that actual losses may be higher because many victims do not report fraud. Its figures also include cases involving other payment channels, meaning the entire $388 million cannot be attributed solely to crypto ATM deposits.  #Crypto ATMs might look familiar, but they operate very differently than typical ATMs. Cash deposited into a #CryptoATM is converted into various forms of cryptocurrency, and the transfer is often immediate and irreversible. They also allow criminals to conceal their… pic.twitter.com/S31nzSYC9q  — CFTC (@CFTC) August 26, 2026  Crypto ATM scams rely on irreversible transfers  Unlike a bank ATM, a crypto kiosk converts deposited cash into cryptocurrency and sends it to a specified wallet. The transfer typically cannot be reversed after blockchain confirmation.  Scammers often provide a wallet address or QR code and remain on the telephone while the victim completes the transaction. They may direct victims to divide

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Staking Ethereum could soon look entirely different under a new deposit proposal

Ethereum developers have opened an early proposal to make the staking deposit system flexible enough to accept future quantum-resistant validator keys, and it would also give a later network upgrade a one-way switch to stop new deposits using todays BLS format.  Related Asset Ethereum #2 ETH · $2,492.30 24-hour change: up 1.33% 24H Up 1.33% 7D Up 10.21% 30D Up 32.21%  The change would affect how new validators enter Ethereum, creating an entry path for future credential formats. Yet, those formats and the rules for verifying them still have to be designed and adopted separately.  Pull request #12235 was opened Aug. 24 and remained an unmerged Draft as of Aug. 26, with its working file still using the placeholder number 9999. An Ethereum EIPs editor suggested assigning 8394, but the proposal has not been published or accepted as EIP-8394.  How the deposit switch would work  Ethereum‘s staking deposit contract is the entry point that receives a prospective validator’s funds and credential data. The current path expects public keys and signatures in fixed BLS12-381 formats.  The draft specification instead adds a scheme identifier and variable-length fields for the public key and credential metadata, each capped at 8,192 bytes.  Ethereums execution layer can record a deposit while its consensus

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StarkWare tests quantum-resistant Bitcoin transaction on mainnet

StarkWare researcher Avihu Levy has tested an experimental quantum-resistant transaction on the Bitcoin mainnet, in what the company described as the first transaction of its kind.  According to StarkWare, the transaction was confirmed Wednesday in Bitcoin block 964,199. Onchain data shows that it spent a 10,000-satoshi output protected by Levys Quantum Safe Bitcoin (QSB) scheme, with MARA Pool mining the block after receiving the transaction through its Slipstream service.  Levys paper and code repository said QSB combines hash-based one-time signatures with computational searches that bind an authorization to a specific transaction. The construction is intended to prevent forgery even if a quantum computer breaks the elliptic-curve cryptography Bitcoin uses.  The test moves Levy‘s April proposal from theory to an onchain demonstration, showing that Bitcoin’s existing consensus rules can accommodate one form of quantum-resistant spending without a protocol change.  Quantum-resistant Bitcoin method remains costly  In March, Google researchers estimated that a sufficiently capable quantum computer could theoretically derive a Bitcoin private key nine to 12 minutes after its public key becomes visible. Google said that could allow an attacker to replace a pending transaction during Bitcoins confirmation window.  Levy then introduced QSB in April, estimating at the time that generating a transaction would require between $75 and

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