Liquid-Staking

Liquid Staking allows users to earn staking rewards while maintaining the liquidity of their assets through Liquid Staking Tokens (LSTs).Unlike traditional staking, protocols like Lido and Rocket Pool issue a receipt token (e.g., stETH) that can be used across DeFi for lending or yield farming. In 2026, the sector has expanded into Restaking via EigenLayer, further increasing capital efficiency. This tag explores the balance between network security and liquidity, the rise of LRTs (Liquid Restaking Tokens), and PoS yield optimization.

88 Articles
Created: 2026/02/02 18:52
Updated: 2026/02/02 18:52
Balancer Hacker Now Converting Loot to Ethereum: Stolen Funds Surge To $116.6M

Balancer Hacker Now Converting Loot to Ethereum: Stolen Funds Surge To $116.6M

Balancer, a major DeFi protocol, has suffered a significant exploit, with approximately $116 million drained from protocol vaults. On-chain data shows large, unusual outflows from Balancer’s “0xBA1…BF2C8” address to an external wallet, including 6,587 WETH (~$24.5M), 6,851 osETH (~$26.9M), and 4,260 wstETH (~$19.3M). The scale and nature of the transfers point to a coordinated attack involving high-value assets across multiple vaults. Balancer has since confirmed the breach, stating that “around 7:48 AM UTC, an exploit affected Balancer V2 Composable Stable Pools.” According to the team, these pools have been live for several years, and some were outside the pause window, leaving them vulnerable. Pools that could be paused have been halted and are now in recovery mode, with the exploit confirmed to be isolated to V2 Composable Stable Pools. Balancer V3 and all other pools remain unaffected. The protocol says it is working with leading security researchers and legal teams to investigate and will release a full post-mortem. Balancer also warned users about fraudulent communications circulating in the aftermath, emphasizing that official updates will only come through its verified X account and official Discord. This incident marks one of the largest DeFi exploits of the year and has heightened security concerns across the sector. Related Reading: Whale Piles Into ASTER Shorts After CZ’s Comment – $52.8M On the Line Hacker Offloads Stolen Tokens Into ETH as Crypto Markets Face Broad Selloff According to Lookonchain, the Balancer exploiter has begun swapping the stolen assets for ETH, accelerating concerns that the attacker intends to consolidate and move value quickly before defenses or recovery mechanisms can engage. Converting large amounts of liquid-staking tokens and wrapped assets into ETH not only solidifies the hacker’s control over the stolen funds but also signals an intent to exit positions entirely rather than negotiate or return funds — a troubling sign for victims and the protocol. This development is unfolding during one of the sharpest pullbacks the market has seen in recent months. Ethereum has fallen below $3,500, a key psychological and technical level, while Bitcoin has broken under the $105,000 support, intensifying fears of deeper downside as liquidity thins and sentiment deteriorates. Altcoins, already under pressure from macro-driven derisking, are bleeding heavily, with capital rotation stalling and speculative flows evaporating. For Balancer, the timing compounds the severity of the crisis. A major security breach during a fragile market period magnifies losses, erodes confidence, and increases the risk of liquidity dislocations. The DeFi ecosystem is now closely watching both the hacker’s next moves and Balancer’s recovery plan as the sector navigates heightened stress on both technical and sentiment fronts. Related Reading: Balancer Protocol Sees $70M Exit In Suspected Crypto Exploit BAL Breaks Down Further As Market Selloff Drives Heavy Pressure BAL has entered another phase of sustained weakness, with the weekly chart showing a clear downtrend that has now intensified following the confirmed exploit. After trading near the $1 region for months, the token has broken lower, currently hovering around $0.80 and showing a sharp weekly decline. The chart reflects heavy selling volume, suggesting that the security breach accelerated an already fragile market structure. Technically, BAL remains below the 50-week and 200-week moving averages, reinforcing a long-term bearish trend with no immediate signs of reversal. Each attempt to establish support has been met with lower highs and breakdowns, indicating persistent distribution and a lack of sustained buyer interest. The recent spike in volume during the selloff confirms capitulation behavior rather than accumulation, as fear spreads across the DeFi sector. Related Reading: Bitmine Buys 44,036 Ethereum Worth $166M During Market Dip – Details Market sentiment around BAL has deteriorated further given the exploit’s timing. With Ethereum trading below $3,500, Bitcoin losing key support near $105,000, and altcoins bleeding across the board, risk appetite is at a low point. For BAL to show recovery signals, it would need to reclaim psychological support near $1 and stabilize volume flows. Until then, price action remains vulnerable, and further downside cannot be ruled out as confidence rebuilds slowly. Featured image from ChatGPT, chart from TradingView.com

Author: NewsBTC
Balancer Protocol Sees $70M Exit In Suspected Crypto Exploit

Balancer Protocol Sees $70M Exit In Suspected Crypto Exploit

Balancer, one of the most established decentralized finance (DeFi) protocols with more than $700 million in total value locked (TVL), appears to have suffered a serious exploit, adding fresh stress to an industry still grappling with security concerns. Early on-chain evidence indicates that attackers drained assets across multiple chains, with losses now exceeding $98 million, making this one of the largest DeFi breaches of 2025 so far. Related Reading: Bitmine Buys 44,036 Ethereum Worth $166M During Market Dip – Details The attack appears to have targeted Balancer liquidity pools, siphoning high-value assets including wrapped ETH and liquid-staking derivatives through coordinated cross-chain movements. Initial wallet traces show funds rapidly routed through mixing services and bridge networks. This suggests a sophisticated operation designed to minimize traceability. This is not the first time Balancer has faced a security incident, and the scale of this exploit reignites conversations around protocol hardening, liquidity pool design risk, and cross-chain attack vectors. It also deals a blow to market confidence at a time when institutional interest in DeFi infrastructure has been slowly recovering. Over $98M in ETH-Based Assets Drained as Market Weakness Adds Pressure According to on-chain data compiled by Lookonchain, the Balancer exploit resulted in the loss of a significant amount of high-value Ethereum-based assets. Among the stolen funds were 6,587 WETH (worth approximately $24.46 million), 6,851 osETH (valued around $26.86 million), and 4,260 wstETH (roughly $19.27 million). These figures confirm that the attacker targeted core liquidity holdings, particularly liquid-staking assets and wrapped Ether. Assets commonly used in advanced DeFi strategies and institutional portfolios. The scale of outflows highlights the exploit’s severity and underscores persistent vulnerabilities in cross-chain and liquidity-pool architecture. More importantly, this incident has arrived at a sensitive moment for the market. Ethereum is already under selling pressure, struggling to reclaim key levels amid broader crypto market weakness. Risk appetite has thinned, liquidity has become more selective, and sentiment remains fragile following recent volatility. The Balancer breach adds another layer of stress to an ecosystem trying to regain its footing. Major exploits like this serve as a stark reminder that smart-contract risk remains one of the sector’s biggest challenges. With investors already cautious, the timing amplifies uncertainty — and the market’s reaction in the coming days will be a critical test for confidence across the Ethereum and DeFi landscape. Related Reading: Bitcoin Point Of Control Sits At $117K – Key Battle Zone For Bulls Balancer (BAL) Trades Near Cycle Lows as Sellers Maintain Control Balancer’s native token BAL continues to trade under heavy pressure, now sitting near $0.97 and hovering close to multi-year lows. The weekly chart reflects persistent weakness, with price trending steadily downward since mid-2024 and repeatedly failing to reclaim key moving averages. The 50-week and 100-week moving averages remain firmly above price and slope downward, reinforcing a long-term bearish structure and signaling that momentum remains with sellers. Recent attempts to rebound have been shallow and short-lived. Indicating limited buying interest and a reluctance from market participants to position aggressively following the latest exploit news. This weakness predates the incident. However, BAL has been in a consistent downtrend for months, struggling to sustain demand even during broader market relief phases. Related Reading: $780M Worth of Ethereum Pulled From Exchanges – Biggest Withdrawal Spike in Weeks With the token sitting near its post-listing lows, the market is in a “show-me” phase. Bulls need to reclaim at least the $1.20–$1.40 area and break above the 50-week moving average to challenge the prevailing downtrend. Failure to do so risks deeper price compression and potential price discovery lower. Featured image from ChatGPT, chart from TradingView.com

Author: NewsBTC
Aster’s Rocket Launch Surpasses $1B in Trading Volume, as Nubila Joins with Over 6 Million $NB in Rewards

Aster’s Rocket Launch Surpasses $1B in Trading Volume, as Nubila Joins with Over 6 Million $NB in Rewards

[PRESS RELEASE – George Town, British Virgin Islands, October 31st, 2025] Aster, the decentralized trading platform, has generated strong momentum with its innovative product Rocket Launch. In the first six days following the debut of Rocket Launch, Aster recorded approximately $122 million in spot trading volume and $933 million in perpetual trading volume. Within five […]

Author: CryptoPotato
Kinetiq unveils tokenomics and airdrop of the new KNTQ governance token

Kinetiq unveils tokenomics and airdrop of the new KNTQ governance token

Kinetiq has unveiled the KNTQ governance token as it moves to formalise governance for its liquid staking products.

Author: The Cryptonomist
Aster Unveils Rocket Launch: A Gateway to Early-Stage Crypto Projects and Trading Rewards

Aster Unveils Rocket Launch: A Gateway to Early-Stage Crypto Projects and Trading Rewards

[PRESS RELEASE – Road Town, British Virgin Islands, October 23rd, 2025] Decentralized trading platform Aster announced today the debut of its new initiative, Rocket Launch, designed to accelerate early-stage projects by driving liquidity and trading activity, while giving users early access to emerging on-chain opportunities. Aster Rocket Launch aims to transform token launches from one-time […]

Author: CryptoPotato
$1.77 Trillion Manager T. Rowe Price Files for Active Crypto ETF

$1.77 Trillion Manager T. Rowe Price Files for Active Crypto ETF

The post $1.77 Trillion Manager T. Rowe Price Files for Active Crypto ETF appeared on BitcoinEthereumNews.com. The filing shows the fund will be actively managed, targeting the top ten US-listed cryptocurrencies and aiming to outperform the FTSE Crypto US Listed Index Analysts see this as a big move by a traditionally conservative firm, which again signals that established financial giants are now seriously moving into the cryptocurrency market Currently, 155 crypto ETF applications are awaiting SEC action, with expectations exceeding 200 filings by year-end T. Rowe Price (TROW), the US asset manager overseeing roughly $1.77 trillion in assets, has filed an S-1 registration statement with the SEC to launch the “T. Rowe Price Active Crypto ETF.” The prospectus shows that the fund will be actively managed, targeting the top ten US-listed cryptocurrencies and aiming to outperform the FTSE Crypto US Listed Index. So far, nothing else has been reported, and everyone is awaiting the SEC’s decision now. Why an Active Crypto ETF Matters Analysts see this as a big move by a traditionally conservative firm, which again signals that established financial giants are now seriously moving into the cryptocurrency market. Unlike earlier funds that simply mirrored the market, this new structure is actively managed. It means the fund’s managers can make strategic decisions, such as shifting investments between different cryptocurrencies and choosing specific assets they believe will perform well. Why this fits the current iIndustry momentum and the ETF boom Earlier this year, in August, the SEC’s Division of Corporation Finance indicated that certain liquid-staking tokens may not qualify as securities under specific circumstances, which helped open the door for new crypto-related investment funds to be developed. SEC also approved generic listing standards for commodity-based ETFs last month. The change reduces hurdles for crypto funds, shifting from case-by-case reviews to a faster path for qualifying products. Also, a few days ago, other major players like VanEck…

Author: BitcoinEthereumNews
VanEck Files for First US Ethereum Staking ETF

VanEck Files for First US Ethereum Staking ETF

The post VanEck Files for First US Ethereum Staking ETF appeared on BitcoinEthereumNews.com. The fund is designed to provide investors with regulated exposure to the tokenized staking derivative stETH, which represents ETH staked via Lido DAO According to the filings, stETH has a strong on-chain presence, where Lido’s protocol boasts nearly $40 billion TVL The SEC’s Division of Corporation Finance clarified earlier this year that certain liquid-staking tokens may not qualify as securities if they meet administrative or ministerial criteria VanEck, a global investment management firm, has submitted an S-1 registration statement to the US Securities and Exchange Commission (SEC) for a proposed ETF named the ‘VanEck Lido Staked ETH ETF’. The fund is designed to provide investors with regulated exposure to the tokenized staking derivative stETH, which represents ETH staked via Lido DAO. According to the filings, stETH has a strong on-chain presence, where Lido’s protocol boasts nearly $40 billion TVL and more than $2 billion in staking rewards distributed to date. Also, the ETF would track the performance of stETH (thus indirectly staking ETH) and offer daily liquidity, which is a way for investors to access ETH staking returns without running validator infrastructure themselves. Related: 21Shares Moves Solana ETF Closer to Cboe Listing With Staking Option This ETF news is notable because it would be the first US ETF referencing stETH, a sign of increasing institutional recognition of liquid staking. Regulatory shift opens the door for liquid staking products The SEC’s Division of Corporation Finance clarified earlier this year that certain liquid-staking tokens may not qualify as securities if they meet administrative or ministerial criteria. This provided the regulatory opening needed for products such as VanEck’s stETH-based ETF to be proposed. At the same time, members of the Lido Labs Foundation have been involved in conversations with industry leaders and regulators about liquid staking. By working through groups like the Crypto Council for…

Author: BitcoinEthereumNews
Asset Management Giant VanEck Files for Staked Ethereum ETF

Asset Management Giant VanEck Files for Staked Ethereum ETF

The global investment management giant VanEck has filed for a new Lido Staked Ether (stETH) exchange-traded fund (ETF) in the US. Documents submitted to the state of Delaware on Monday indicate the ETF, if approved, would be tied to the price of stETH, a liquid staking token on the Lido protocol. Lido Staked Ether is […] The post Asset Management Giant VanEck Files for Staked Ethereum ETF appeared first on The Daily Hodl.

Author: The Daily Hodl
VanEck Aims To Launch First stETH ETF

VanEck Aims To Launch First stETH ETF

The post VanEck Aims To Launch First stETH ETF appeared on BitcoinEthereumNews.com. VanEck Files to Launch First stETH ETF in the U.S. Investment firm VanEck has submitted a Form S-1 to the U.S. Securities and Exchange Commission (SEC), requesting approval to launch the VanEck Lido Staked ETH ETF — a product designed to give institutional investors direct exposure to stETH, the liquid-staking token representing Ethereum staked through the Lido protocol. The proposed ETF would hold stETH and rely on verified smart contracts, deep secondary-market liquidity, and integration with custodians and exchanges. Since launch, Lido users have earned more than $2 billion in staking rewards, and the protocol’s total value locked now exceeds $33 billion. Source: DefiLIama According to Kian Gilbert, Head of Institutional Relations at the Lido Ecosystem Foundation, the filing reflects growing recognition of liquid staking as a core pillar of the Ethereum ecosystem. He emphasized that Lido aims to merge decentralization with institutional-grade standards. SEC Position on Liquid Staking The press release also notes that the SEC has previously clarified that issuance, redemption, and trading of liquid-staking tokens are not treated as regulated securities activities when performed under established technical and administrative processes. If approved, VanEck’s product would become the first U.S. ETF backed by stETH, potentially opening the door to broader institutional use. Recently, we also reported the appearance of Canary Capital’s TRUMP ETF on the DTCC list — further evidence of accelerating ETF activity across emerging digital-asset categories. Globally, regulators and institutions are rapidly embracing crypto-based financial products. Canada and Europe already offer spot Bitcoin and Ethereum ETFs, which have attracted steady inflows from traditional asset managers. Hong Kong is also positioning itself as a digital-asset hub with new ETF approvals aimed at competing with U.S. markets. As adoption grows, more jurisdictions are shaping clearer frameworks to bring crypto exposure into mainstream portfolios. Source: https://coinpaper.com/11784/institutional-access-to-st-eth-nears-reality-as-van-eck-pushes-first-etf

Author: BitcoinEthereumNews
Institutional Access to stETH Nears Reality as VanEck Pushes First ETF

Institutional Access to stETH Nears Reality as VanEck Pushes First ETF

VanEck Files to Launch First stETH ETF in the U.S.Investment firm VanEck has submitted a Form S-1 to the U.S. Securities and Exchange Commission (SEC), requesting approval to launch the VanEck Lido Staked ETH ETF — a product designed to give institutional investors direct exposure to stETH, the liquid-staking token representing Ethereum staked through the Lido protocol.The proposed ETF would hold stETH and rely on verified smart contracts, deep secondary-market liquidity, and integration with custodians and exchanges. Since launch, Lido users have earned more than $2 billion in staking rewards, and the protocol’s total value locked now exceeds $33 billion.According to Kian Gilbert, Head of Institutional Relations at the Lido Ecosystem Foundation, the filing reflects growing recognition of liquid staking as a core pillar of the Ethereum ecosystem. He emphasized that Lido aims to merge decentralization with institutional-grade standards.SEC Position on Liquid StakingThe press release also notes that the SEC has previously clarified that issuance, redemption, and trading of liquid-staking tokens are not treated as regulated securities activities when performed under established technical and administrative processes.If approved, VanEck’s product would become the first U.S. ETF backed by stETH, potentially opening the door to broader institutional use. Recently, we also reported the appearance of Canary Capital’s TRUMP ETF on the DTCC list — further evidence of accelerating ETF activity across emerging digital-asset categories.Globally, regulators and institutions are rapidly embracing crypto-based financial products. Canada and Europe already offer spot Bitcoin and Ethereum ETFs, which have attracted steady inflows from traditional asset managers. Hong Kong is also positioning itself as a digital-asset hub with new ETF approvals aimed at competing with U.S. markets. As adoption grows, more jurisdictions are shaping clearer frameworks to bring crypto exposure into mainstream portfolios.

Author: Coinstats