DiumPay

[DiumPay @DiumPay]

@Morpho @0xAlphaping @AccountableData, it appears that $AVLT is winding down. Marking the market as unlisted and reassessing the frontend could help prevent users from depositing into a bricked vault

[Sam (Knicks in 5) @futurenomics]

$CRCL crashed 15%+ this morning. It may be oversold. Some stablecoin hot takes:

Today a consortium called Open Standard, backed by Stripe, Visa, BlackRock, Coinbase, BNY Mellon, and 140+ other firms, announced Open USD (OUSD), a new stablecoin launching later this year.

- Free to mint and redeem, no volume caps. Designed as payments infrastructure, not just another digital dollar.
- Reserve revenue (interest earned on backing assets) gets shared with participants, minus a small management fee. That's the economic hook: businesses earn yield on what they hold, unlike USDC/USDT where the issuer keeps the float.
- Led by @zcabrams , co-founder of Bridge, the stablecoin infra startup Stripe bought for $1.1B in 2024.
- Runs on the Genius Act framework signed July 2025, which finally gave stablecoins a regulatory path in the US. That's why the floodgates opened.

Stabelcoins are hard. Distribution and liquidity are the real moat with regulatory risk tolerance (Tether) and incentive spending being the primary levers to drive growth. The best precedent we have for Stripe's entry is another famous fintech's quietly disastrous foray into the space: PayPal.

What they've spent:

PayPal and the USD AI Foundation launched a $1 billion incentive program in January 2026, offering up to 4.5% yield on PYUSD deposits targeted at AI infrastructure. Separately, the consumer rewards program (launched April 2025 at 3.7%, now ~4%) pays monthly PYUSD rewards on balances held in PayPal and Venmo. We don't have a clean total disclosed by PayPal, but between the $1B AI program and the ongoing consumer yield subsidy across a ~$2.7B market cap, the incentive spend is comfortably in the hundreds of millions — likely north of $500M when you include all the partnership deals (MoonPay, M0, YouTube creator payouts, Xoom remittances, 70-country rollout).

What they got:

- PYUSD market cap: ~$2.6-2.7 billion. That's roughly 0.8% of the $315B stablecoin market.
- It's actually shrinking: market cap contracted ~35% recently, from a peak around $3.8B down to $2.47B on some readings. Some of that was internal (PayPal paying its own treasury team in PYUSD).
- For comparison: Ripple's RLUSD hit $1.6B in under two years with far less distribution firepower. Klarna's stablecoin is already making noise.

The brutal math:

PayPal has 430 million active users, 35 million merchants, and a payments brand everyone recognises. After three years and what's likely $500M+ in incentives, they've captured less than 1% of the stablecoin market. That's an extraordinarily expensive cost-per-dollar of outstanding supply, ballpark 20-30 cents of incentive per dollar of PYUSD in circulation, before you even count the operational costs.

The landscape has only become more competitive since. Klarna launched one in November, Amazon and Walmart have both signaled intent. Ripple broke a billion in market cap on their product.

Buffett and Munger talk a lot about replacement cost, or what it would cost a new entrant to duplicate a business. Things like the Burlington Northern are almost impossible to build today. PayPal's experience put a price on replicating what Circle and Tether have, which is almost certainly more than Stripe should pay.

[Delta @deltaxbt]

its funny watching how theyre just trying to figure out how they can beat this monstrous giant called tether and just cant get any progress whatsoever

[DiumPay @DiumPay]

@wannabefresh True. Just a fud. When people enter crypto the default mindset is USDC and USDT. As long as both exist, no other stablecoin can compete. Look at Paypal USD for example, big name but still cant dethrone the duopoly. Coinbase can try but it would be hard

[DiumPay @DiumPay]

@common8er Just a fud. When people enter crypto the default mindset is USDC and USDT. As long as both exist, no other stablecoin can compete. Look at Paypal USD for example big name but still cant dethrone the duopoly. Coinbase can try but it would be hard

[Weilin (William) Li @hklst4r]

If you hold shares in the Alpha USDC Delta V2 vault and are looking to exit at a discount, please DM me. I know someone interested in buying these vault shares OTC.

如果你持有 Alpha USDC Delta V2 vault 的份额，并且希望以折价退出，欢迎私信我。我认识一位正在通过 OTC 收购该 vault 份额的买家。

[CuratorWatch @curator_watch]

🚩 RockawayX flagged on CuratorWatch.

Following fraud allegations tied to Brera Holdings / Solmate ($SLMT) and a parallel SEC Section 13(d) demand, we've seen B2B days of AUM drop:

• -21% AUM
• -12.5% AUM
~34% of AUM gone in 48 hours.

Across all curators, consecutive 10%+ down days occur just 1.1% of the time.

[Cocoahomology @cocoahomology]

let's see what's happening in morpho markets today

price on this asian credit stablecoin seems really stable at $1, let me click on the oracle, see how it's set up

oh, there's no oracle, actually

[Lefteris Karapetsas @LefterisJP]

DAOs are so dead that I see nobody noticed or discussed this proposal that @ENS_DAO essentially dissolves itself and transfers control of the entire treasury (almost half a billion in ENS + stables) to the ENS foundation.

[Jordi in Cryptoland @lordjorx]

DeFi's cleanup is just getting started.

Protocols announcing closures in June or confirmed shutdowns in July now span every category: L2S, DeFi, derivatives, and infrastructure.

Some of these had real TVL not long ago:

> Polygon zkEVM; close to $40 million at its peak
> Botanix, the Bitcoin L2; nearly $30 million
> Swell Chain; built during restaking mania

Some of the reasons: runway gone, no product-market fit, capital burned on narratives that never converted to retention. And maybe summer holidays 😅

The cycle is cleaning up what the cycle created.

[DeFi Voyager @DeFiVoyager_X]

look at the date of my article, link in comment

[Revelation @40kRevelation]

Alright, since I got banned in the Altura (@alturax) $AVLT Discord for sharing reasonable concerns, I will address them here.

First of all, @AccountableData is just a service, which provides and verifies for you the information about where the assets in the vault are allocated, so you can make a decision about the risks. Withdrawing assets from all vaults Accountable is working with is just dumb, but understandable.

Moving on to https://t.co/mvMSYb08Wr, the Altura Dashboard created and verified by Accountable. As we can see, most of Altura's funds right now are allocated to Inessa RWA, an asset manager in Dubai, established in 2023, which works privately with a gold mine somewhere in Africa, and has no proof of its reserves, as well as no reputation or clear public evidence of their work.
They just say “we have gold, we have money.” This has always been the red flag number one about Altura.

[DiumPay @DiumPay]

Various AlphaPing vaults are now in distressed positions with some showing zero liquidity available for withdrawals... as people are leaving due to unresolved concerns around $msY and $AVLT, many are leaving the vaults that have exposure to these tokens or the curator

In response, borrow APY has shot up across various markets, threatening loopers, borrowers and depositors

@Morpho

[Gwoni | Hedgers🦔 @0xGwoni]

[@0xAlphaping]

당신들이 관리하는 Vault에 입금된 $66M 담보중에,
당장 유동화 가능한 자산은 $2M 뿐이야.
이게 어떻게 된거야?
너희 볼트에 유동성 공급한 참가자들을 위해서라도
이후 관리를 어떻게 할건지 포스트는 써줘야지.

https://t.co/CA9gR5wXXE

[Makima @0xMakima_]

if your vault cant even withstand a 30% fall in TVL

either

1) they serviced redemptions 1:1 but exits from these strategies incur significant slippage (due to automation?)

2) they were insolvent to begin with anyway. in which case, @AccountableData???

[DiumPay @DiumPay]

@flymperopoulos @Morpho Hi
@flymperopoulos

, it appears that $AVLT is winding down. Marking the market as unlisted and reassessing the frontend could help prevent users from depositing into a bricked vault

[DiumPay @DiumPay]

@Morpho @zama @SteakhouseFi Hi @Morpho
, it appears that $AVLT is winding down. Marking the market as unlisted and reassessing the frontend could help prevent users from depositing into a bricked vault

[DiumPay @DiumPay]

@PaulFrambot @SentoraHQ @Figure Hi @PaulFrambot

@Morpho, it appears that $AVLT is winding down. Marking the market as unlisted and reassessing the frontend could help prevent users from depositing into a bricked vault

[DiumPay @DiumPay]

@Dpeter_Y

[DiumPay @DiumPay]

I checked the $AVLT slow withdrawal queue, and the situation appears highly distressed

outstanding withdrawals that Altura needs to process are now close to 1.5M around $1.635M USDT. these claims are expected to be settled within the next 72 hours

even today, there has already been a record amount of liquidity injected roughly $5.45M in the past day from what appears to be a team-linked wallet alone. There was also another ~$500K supplied to Morpho, likely to ease the sharply rising borrow APY

As I am writing this, users in Discord are saying they cannot use instant withdrawals because the frontend is not allowing them to do so. They are being pushed toward “slow redemptions” instead

I hope people can get out in time.
@0xAlphaping @AccountableData need to address this

[DiumPay @DiumPay]

As I'm writing this, the Inessa blackbox exposure has grown to 64% dangerously close to 70%, while back in april it was only 45%. Ask yourself whether it's worth investing in something where the majority of your funds is a ghost