arbitrage

According to the official report from Ostium, the core of this attack lies in the intrusion of the off-chain price reporting system's permissions, unrelated to smart contract vulnerabilities. After gaining off-chain authorization, the attacker submitted forged prices (5,000 USD and 60,000 USD) to the BTC-USD market using the legally registered forwarding paths of the protocol, completing an atomic open-close arbitrage cycle within the same transaction, and starting with a rolling scale of 100 USDC. Through 8 transactions, they extracted 23.75 million USDC from the OLP treasury within 5 minutes, until the treasury's circuit breaker mechanism was triggered.The root cause is the lack of a multi-party approval mechanism at the same level as on-chain multi-signature in the off-chain infrastructure, creating a single point of permission vulnerability. The stolen funds have been converted to ETH and mixed through Tornado Cash, and tracking efforts are still ongoing.

Dutch crypto finance protocol Tori Finance announced that its institutional-grade Delta neutral yield product strUSD has completed a $50 million pre-deposit fundraising before its official launch, reaching the cap in just 7 days. Tori stated that strUSD offers an annualized yield of approximately 12%, with returns derived from global arbitrage trading strategies traditionally used by financial institutions, rather than from the circulation of funds in the crypto market. This strategy achieves low correlation with crypto market cycles by borrowing in low-interest currencies, investing in high-interest markets, and utilizing foreign exchange hedging to lock in dollar returns.Tori founder Samed Duzcay mentioned that such trades were previously mainly participated in by large institutions like pension funds and banks, which typically required a funding threshold of tens of millions of dollars and involved complex processes such as local bank accounts, custody, tax, and compliance approvals. Tori opens up these institutional strategies to ordinary users through on-chain tokenization. Users can deposit USDC or USDT to obtain the synthetic dollar asset trUSD and stake to earn strUSD. This asset is based on the ERC-20 standard and can be integrated with DeFi protocols such as Morpho, Pendle, and Curve, and can also be used as collateral for lending to further amplify returns.Tori claims that the protocol constructs an on-chain balance sheet through zero-knowledge proofs and trusted execution environments, with independent verification agency Accountable conducting real-time audits of off-chain fund situations; digital asset investment firm RockawayX serves as the risk management party and anchor liquidity provider. Additionally, Tori's smart contracts have been audited by Sherlock and Nethermind, and Hypernative has been introduced for round-the-clock security monitoring, with all contract upgrades set to a 24-hour delay mechanism. Tori stated that its goal is to bring the neutral yield strategies used by traditional financial institutions for decades into the on-chain financial system, promoting the integration of real yields with DeFi infrastructure.

Binance Research released a report on tokenized stocks showing that bStocks has increased the number of tokenized stock assets from 5 to 25 in less than a month since its launch, with a market capitalization approaching 300 million USD.In terms of user participation, among 190,417 bStocks users, 41.5% only trade bStocks, while 58.5% participate in perpetual contracts and/or stock products. The report also indicates that a total of 2,806 users engaged in cross-market arbitrage, with 206 systematic arbitrage users contributing 198.2 million USD in rapid matching transaction volume, accounting for 96.5% of the relevant transaction volume.The report states that bStocks' appeal is particularly evident during non-trading hours. During regular trading hours, the share of stock spot transaction volume is 52%, while bStocks accounts for 48%; however, during non-trading hours, the share of bStocks transaction volume rises to 58%, surpassing the stock spot's 42%.Additionally, bStocks has begun to extend into on-chain yield scenarios. Currently, the relevant liquidity pools can offer an APY ranging from 32% to 228%, while the yield of the native credit pool is between 5% and 10%, indicating a total TVL of approximately 1.15 million USD.

The security analysis platform GoPlus tweeted regarding the incident where "a user exchanged approximately 1126 ETH (about 2.01 million USD) for 5776 LIT (about 14,000 USD) on Uniswap, resulting in a loss of nearly 2 million USD." The core reason for this incident was not a sandwich attack, but rather backrunner arbitrage within the same block. The routing contract injected a large amount of WETH into a liquidity-poor AVAIL/WETH trading pool, causing the user to buy AVAIL at a severely deviated market price (about 120 times the reasonable price). Subsequently, within the same block, the backrunner executed a reverse trade on the pool with a minimal amount of AVAIL at the real price, withdrawing approximately 1072 WETH, and paid most of it (about 1018 ETH) as builder payment to Titan Builder.

Bitget announced the launch of the Delta Neutral Mode in its unified account. This feature will apply a differentiated automatic deleveraging (ADL) sorting mechanism to eligible hedging positions when the account meets preset Delta neutral conditions, thereby reducing the likelihood of reasonable hedging strategies being forcibly deleveraged in extreme market environments.The Delta Neutral Mode supports users in combining spot, full-margin leverage, and full-margin contract trading within the unified account framework, with the system synchronously assessing directional exposure at the account and asset level. This feature is suitable for funding rate arbitrage, basis trading, multi-market hedging strategies, and quantitative neutral strategies, among others.

The silly dragon king responded to "weekly interest income of $500,000," and the Binance screenshot he released shows that the account earned a total of $125,000 in funding fees over the past 6 days.

Bitwise Asset Management and Superstate jointly announced that Bitwise will take over the investment management responsibilities of the Superstate Crypto Carry Fund (USCC), which is a tokenized spot arbitrage strategy fund managing approximately $267 million in assets. The transaction is expected to be completed on June 1, and the fund will be renamed the Bitwise Crypto Carry Fund, but will retain its existing code, smart contracts, and token addresses.Bitwise will be responsible for portfolio management, while Superstate will continue to operate the on-chain infrastructure, including tokenized issuance and digital transfer agency services. This is Bitwise's first tokenized fund, and it is the second time this year that Superstate has transferred a fund to a large asset management company, following Invesco's takeover of its $967 million tokenized government bond fund USTB.Superstate is shifting from fund operations to focus on its tokenized infrastructure platform FundOS, and Coinbase Asset Management's Crypto Yield fund was also launched on that platform last week.

According to CCTV News, the Office of the Foreign Investment Security Review Mechanism has legally made a decision to prohibit the foreign acquisition of the Manus project, requiring the parties involved to withdraw the acquisition transaction. Manus was initially developed by the Chinese company Butterfly Effect and became an overnight sensation after its release in March 2025. In June of the same year, it moved its headquarters to Singapore and ceased domestic operations, and in December 2025, it was announced by the American company Meta that it would acquire it for approximately $2 billion.Zhou Mi, a researcher at the Ministry of Commerce's Academy, stated that Manus moved the project to Singapore through funding and corporate transfer before selling it to an American company, which raises suspicions of intentionally evading regulation. If such practices are not controlled, more companies will follow suit, harming national development interests and security.Zhou Mi emphasized that China has consistently maintained an open attitude towards foreign investment but takes a cautious stance on sensitive investments involving key technologies and data security, stating that "evading regulation in a malicious manner will ultimately not achieve the intended purpose."

MonetSupply, the strategy director at Spark, posted on platform X that Aave has decided to lift the freeze on the Ethereum Core WETH market. Under the current interest rate model, LST/LRT holders can execute high-leverage circular strategies using assets like weETH, taking advantage of the approximately 0.5% discount on the weETH market price and the Aave ETH borrowing rate cap of 5.15%, to achieve an annualized return potential of about 45%.Currently, the utilization rate of the aEthWETH market has reached 100%, making it more difficult for regular depositors and stablecoin borrowing users to exit or refinance from aWETH. MonetSupply pointed out that this decision provides arbitrage opportunities without addressing the liquidity tension of aEthWETH, weakening the liquidity and experience for regular users.

According to on-chain analyst Yu Jin (@EmberCN), due to Aave suspending WETH withdrawals, the deposit certificate aEthWETH has experienced a discount.Whale address 0x8ad withdrew 13,000 ETH (approximately 30 million USD) from the exchange, purchased 13,143 aEthWETH through Swap, and then repaid its ETH loan on Aave at a 1:1 ratio, netting a profit of 143 ETH (approximately 330,000 USD).

JPMorgan CFO Jeremy Barnum stated during the earnings call that if regulatory rules are not aligned with traditional bank deposits, stablecoins may evolve into a "regulatory arbitrage" tool. He pointed out that some stablecoin models already exhibit deposit-like characteristics, such as providing incentives similar to yields, but are not subject to banking regulatory requirements like capital, liquidity, and consumer protection, which could create an unfair competitive environment. "If the same products are not regulated equally, it will open up arbitrage opportunities," Barnum said.Currently, U.S. legislation is pushing for a cryptocurrency regulatory framework, including the Clarity Act, to clarify the regulatory division of labor between the U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission, and to regulate the development of the stablecoin market. Additionally, whether to allow stablecoins to distribute reserve earnings to users has become a point of contention. Cryptocurrency companies, including Coinbase, support "interest-bearing stablecoins," while banks believe this would bring them closer to deposit products but lack corresponding regulatory constraints. JPMorgan expressed support for regulatory clarity but emphasized that "regulatory consistency" takes precedence over speed. At the same time, the bank is advancing product layouts, including JPM Coin and tokenized deposits, through its blockchain division Kinexys to modernize the payment system.

According to on-chain analyst @ai_9684xtpa, a trader spent 0.2 ETH ($436) on the Ethereum mainnet to buy 77,000 DOT using Uniswap and sold it on a CEX for $10,042.Subsequently, they used the same method to spend a total of 1.1 ETH to buy DOT, attempting various cross-chain methods while buying low and selling high in different liquidity pools. Ultimately, they successfully crossed from the ETH mainnet to the Base network via Hyperbridge, selling 503,000 DOT for 68.72 ETH in one transaction, making a profit of $150,000.