The Ethereum network upgrade, also known as the Shapella upgrade, has been met with positive reactions from the DeFi ecosystem, with the trading price of ETH hitting an eleven-month high despite large volumes being unstaked on Thursday and Friday. The price of DeFi tokens like UNI and AAVE has also reflected the market’s optimistic response to the upgrade. One possible implication is a reshuffling of the Ethereum card deck as investors redistribute their previously locked-up assets. Decentralized exchanges could benefit from any such shakeup as more Ethereum-based assets flow into various decentralized protocols.
Olympus DAO has approved a modified treasury framework, which increases Ether exposure, backing OHM tokens with more “volatile assets.” The adjusted ratio of 75% stablecoin holdings marks a step towards ending reliance on stablecoins with centralized backing, with an increase in cap for holdings of the decentralized stablecoin LUSD to 10%, allowing reduction of the DAO’s exposure to centralized stablecoins by more than 10%. As Olympus matures, the DAO will reevaluate these ratios every six months.
The US Securities and Exchange Commission has voted to approve an updated proposal for the regulation of crypto exchanges, with updated definitions that could bring many DeFi platforms within the commission’s regulatory perimeter. Two commissioners, Hester Peirce and Mark Uyeda, voted against the changes, with Peirce stating that the proposed rules could place limits on the decentralized governance that is critical to DeFi.