Threading on the Edge

Heeaaaaaaaaated debate broke out in the ETHSecurity Community Telegram earlier today between LayerZero’s Bryan and security researchers.

TLDR summary:

- $3 billion+ of LZ OFTs were recently at risk of being compromised due to a default library contract that LZ Labs could upgrade instantly with no timelock to forge messages (like what happened with rsETH hack)

-According to Banteg, major projects like Ethena and EtherFi were STILL using this default library contract as of a few weeks ago

- There is still $178 million in value exposed to being compromised from projects using default library (look at quote tweet)

- LZ Labs doesn’t need to be malicious for this be risk, they have history of poor opsec (in addition to being hacked by North Korea):

- Onchain data shows LZ Labs multisig signers were engaging in non-multisig signing activity like trading memecoins, swapping on DEX, bridging. All major phishing risks as this mean production multisig keys were connected to websites, not just used for signing

- LZ Labs handled private keys like a high schooler, trading memecoins on production multisig keys, no wonder they got targeted by North Korea, who knows what other poor opsec they have?

THREAD BELOW

https://x.com/catfishfishy/status/2052552571995169044?s=46&t=hr2fbvcHJGpvp_SbDstdzg

Everyone is searching for the next CPO bottleneck whilst ignoring one of the more obvious trades out there:

Chemicals.

It's the boring and unglamourous part of the AI infrastructure buildout, but one too many don't have on their radar.

https://x.com/mmmtwealth/status/2051277358452146637?s=46&t=hr2fbvcHJGpvp_SbDstdzgIt

i’ve spent the last week mapping every protocol worth farming on megaeth and i am down to 9.

the deeper thesis most people are missing is that
@megaeth
is not a chain business, it’s a stablecoin business using a token as a liquidity rental mechanism.

USDM is the actual economic engine.

$MEGA exists to bootstrap adoption until organic demand develops.

if the “fat app” thesis plays out and distribution becomes the real moat, then owning the chain alone isn’t enough.

the stack that actually wins looks like this:

→ sequencer
→ stablecoin
→ payments layer
→ consumer distribution

own all of it or someone else captures the value you built. megaeth has the pieces.

here’s the breakdown, app by app, thesis by thesis.

👇

https://x.com/arndxt_xo/status/2053134321033376077

https://threadingontheedge.substack.com/p/9-protocols-to-farm-on-megaeth

a few places where I regularly find great data-driven crypto research in a noisy world

https://x.com/_kinjalbshah/status/2052392238630510617?s=46&t=hr2fbvcHJGpvp_SbDstdzg

Most people in the comment section will just share their referral links.

Here’s categories of different crypto cards/neobanks based on what you actually want to do with them:

https://x.com/Octop3s/status/2052725396911632799

Few realize there's a $15M @AerodromeFi fuelled heist going on in the form of @overnight_fi ... if you farmed aero in the early days I'm sure you've seen them.

- They raised $850k in pre seed from some good funds

- The product was basically a PoL aero farm. They put up liquidity and bribed their pool, extracted more than their bribes, repeat.

- They were early to this and it worked well, earning them millions and filling up a fat treasury to $15M including their veNFT

- To entice buyers they always said OVN was backed and the treasury would buyback whenever it fell below treasury value... and it should be valued for its PoL and the business itself

- That day came as OVN sold off... but the founders promises didn't come to fruition. OVN has traded down only for a long time.

- In response, the holders put up a vote to distribute the treasury assets back to them

- 1 day later... he's attempting to take the entire treasury for himself and disguising it as a 'token migration'. Every holder will be diluted 1:1000 and get locked tokens

- On top of this he tries to claim protocol owned wallets are suddenly his own... Trying to comingle and mix funds to hide the treasury.

- It's such nasty work, even their lead VCs have started selling at cents on the dollar despite holding until now

Guess the only thing that was overnight about this was how fast the treasury disappeared

note: dcf cap holds OVN (from a long time ago). Thankfully a small bag, but enough to pay attention.

https://x.com/dcfgod/status/2052903751191863628

some of the best risk-adjusted returns right now are not in tokens. they are in market making on prediction markets and tokenized equity perps

spreads are wide/books are thin and most PM markets have almost no liquidity + tokenized equity perps have spreads that wouldn't survive a second on nasdaq

structurally similar to early crypto arbitrage (circa 2017). not as easy and not riskless but the same pattern. early infrastructure, few sophisticated participants, outsized returns for the first movers. also a reminder that some of those early crypto MMs are still dominant today

the quant firms are investing billions in PM infra and that capital is not here to sit.when they finish building their desks this window closes

now is probably the best time to get active

https://x.com/thenarrator/status/2052565474941001738?s=46&t=hr2fbvcHJGpvp_SbDstdzg

Onchain gachas are going parabolic!

After setting new ATHs in spend volume in both March ($148.6M) and April ($184.0M), the sector is on pace to set another ATH in May ($211.2M projected). The top 6 TCG platforms by projected May spend:

1) @Collector_Crypt - $84.8M
2) @phygitals - $51.6M
3) @Courtyard_io - $50.6M
4) @Beezie - $15.8M
5) @mnstr - $4.5M
6) @renaissxyz - $3.8M

Crypto's next breakout application is here.

https://x.com/avgjoescrypto/status/2052399082539286618?s=46&t=hr2fbvcHJGpvp_SbDstdzg

AI is making me ape things I have no business aping.

I don't trade @base microcaps. It's mostly jeets and I have zero edge there.

But now I can ask my AI to scan every @bankrbot token that ever existed, rank them, build a framework, and tell me the base rates quickly

Threw in tiny size to test
Not sure if this is progress or a new form of degen enablement. lol

Anyway, shooters shoot. $WONDERLAND
- MCP marketplace for AI agents to discover + pay APIs
- Built by @gillinghammer (Tesla #200, Delphi Digital)
- Fair launched via @bankrbot, founder claimed + won't sell (i hope)

first bankrbot coin i ape in past few months i think


https://x.com/2lambro/status/2052622802432458924

I believe many of you who've used GPT 5.5 have already run into a situation like mine.

In a single task, you might encounter multiple instances where GPT 5.5 refuses to proceed and demands that you complete KYC. In most cases like this, you'll need to switch to 5.4 or tweak the prompt to keep the task going.

Friendly reminder for everyone:
Actually, there's no need to go hunting down a K merchant for K. Their KYC system is kinda trash—it seems like just having someone photoshop an image can get you through it too. I took an expired Philippine driver's license, had the image photoshopped a bit, and it actually passed...

https://x.com/sanyi_eth_/status/2052607201882296525?s=46&t=hr2fbvcHJGpvp_SbDstdzg

if i were starting PM market making today i would skip sports and go straight to long-dated macro

wide spreads, thin books and almost no competition

the boring markets are sometimes the profitable ones and almost nobody is quoting them​​​​​​​​​​​​​​​​ (everyone is focused on sports, 15-min ct prices and other fast paced markets)

sometimes slow is fast

https://x.com/thenarrator/status/2052588784877806064?s=46&t=hr2fbvcHJGpvp_SbDstdzg

Brothers, let me tell you something scary.

The trading volume for S&P 500 call options yesterday hit $2.6 trillion.

What does that mean?

In U.S. stock market history, there's never been a single-day figure this high.

https://x.com/dtdt666/status/2052567642280755343?s=46&t=hr2fbvcHJGpvp_SbDstdzg

Thank you to everyone who showed interest in my latest Power Investment Map.

This sector may look like it has already moved a lot, but I still believe there are many opportunities ahead. For those who are just starting to look at this space, I am confident this article will help you quickly understand the big picture.

Really appreciate all the support.

https://x.com/damnang2/status/2052498921751196062?s=46&t=hr2fbvcHJGpvp_SbDstdzg

the next social network is a prediction market where your feed is ranked by accuracy not engagement. the person who is right 80% of the time gets seen while the person who is loud gets buried

https://x.com/thenarrator/status/2052509960227979773?s=46&t=hr2fbvcHJGpvp_SbDstdzg

There is an insatiable demand for AI compute.

And there are only a few companies that can supply it.

Hyperscalers & CSP
$GOOGL Alphabet
$AMZN Amazon
$MSFT Microsoft
$META Meta Platforms
$BABA Alibaba Group
$ORCL Oracle

Neocloud
$NBIS Nebius Group
$CRWV CoreWeave
$WYFI WhiteFiber

High-Performance Compute
$IREN IREN
$HUT Hut 8
$DGXX Digi Power X
$WULF TeraWulf
$APLD Applied Digital
$CORZ Core Scientific
$SLNH Soluna Holdings
$GLXY Galaxy Digital
$RIOT Riot Platforms
$CIFR Cipher Mining
$MARA MARA Holdings
$CLSK CleanSpark
$BTDR Bitdeer Technologies Group
$HIVE Hive Digital Technologies

https://x.com/speculator_io/status/2052497674738229684?s=46&t=hr2fbvcHJGpvp_SbDstdzg

"This was a rose garden that have alot of roses...rose garden is famous for roses a long time... "

Trump speaking soon, expecting volatilty

https://www.youtube.com/watch?v=Is-mYvLjbgY

I believe the next rotation for Ai plays would be towards inference tech companies that reduce inference costs.

Cheaper tokens more tokens

https://x.com/demian_ai/status/2052395660108759174?s=46&t=hr2fbvcHJGpvp_SbDstdzg