Crypto World
Market Rebound Triggers Nearly Half a Billion in Short Liquidations
The crypto market capitalization has moved higher over the past day, with broad gains across major coins reflecting improving investor sentiment.
At the same time, the rebound has squeezed bearish positions, with over $468.5 million in short liquidations recorded during the 24-hour window.
Crypto Liquidation Wave Hits Short Sellers
According to BeInCrypto Markets data, total market capitalization has increased by 4.29%. The majority of the top 10 cryptocurrencies have posted gains over the past 24 hours.
Dogecoin (DOGE) jumped 9.10%, marking the strongest performance among the 10 largest cryptocurrencies. Lido Staked Ether (STETH) followed, advancing 8.83%. Ethereum (ETH) ranked third among the top performers, jumping 8.75% and reclaiming the $2,000 level.
Bitcoin (BTC) also posted notable gains, climbing 4.76% over the past day. The flagship cryptocurrency briefly touched $70,027 on Binance yesterday before retracing slightly to trade at $68,647 at press time.
BeInCrypto reported that the rally benefited some long traders who recorded profits amid ETH’s latest rise. However, traders betting on further downside saw losses.
According to Coinglass, 128,348 traders were liquidated over the past 24 hours, with total liquidations reaching $575.59 million. Short traders bore the brunt of the losses, accounting for $468.53 million in liquidations, compared to $107.06 million in long positions.
Bitcoin alone accounted for roughly 40% of total liquidations, with approximately $194.95 million in short positions liquidated. ETH recorded $203.8 million in total liquidations during the same period, with $175.16 million stemming from short positions.
The largest single liquidation order occurred on Hyperliquid for the BTC-USD pair, valued at $10.41 million.
Analysts Warn Crypto Relief Rally May Not Signal Full Trend Reversal
The recent rally has sparked optimism, but analysts warn it may not mark a full trend reversal. According to XWIN Research Japan, Open Interest has fallen sharply from prior highs, signaling a broad deleveraging phase.
“The recent drop in price was accompanied by falling OI, suggesting that liquidations and derivatives-driven unwinds — rather than aggressive spot selling — played a major role in the decline. This type of reset can stabilize the market, but it does not automatically signal renewed structural demand,” XWIN Research Japan wrote.
At the same time, Binance’s Fund Flow Ratio remains low at around 0.012. Since this metric tracks BTC inflows relative to total exchange holdings, a low reading suggests limited immediate sell pressure.
The analysis added that during the drop toward the mid-$60,000 range, the ratio did not spike. This suggested there was no panic-driven spot selling.
However, XWIN Research Japan noted that weak inflows do not imply strong accumulation. The medium-term trend of the Fund Flow Ratio’s moving averages is trending downward. It indicates that structural demand has not yet shifted upward.
“When leverage remains suppressed, upward price moves can easily trigger short squeezes. In that case, the rally is driven more by position unwinding than by expanding structural demand,” the post read.
Analyst Darkfost also stressed that an increase in spot trading volume will be necessary for any bullish recovery or solid market bottom to develop.
Crypto exchange Gate has secured a Payment Institution license in Malta, a license under the European Union’s PSD2 framework, giving the crypto exchange a regulated foothold to offer payment services across the bloc alongside its existing crypto permissions.
The company said Thursday that its Malta-based entity, Gate Technology, received the license from the Malta Financial Services Authority (MFSA). Gate said the approval supports its strategy of linking traditional payment infrastructure with Web3 services in Europe.
The authorization adds payment capabilities to Gate’s existing EU crypto permissions. On Oct. 1, 2025, Gate announced that it had obtained a license under the EU’s Markets in Crypto-Assets Regulation, allowing it to provide exchange and custody services across member states.
EU crypto companies offering payment services in stablecoins must hold either a Payment Institution or an Electronic Money Institution authorization. With PSD2 approval, Gate can passport regulated payment services across the bloc, expanding beyond trading into fiat and stablecoin payment infrastructure.
Gate says its flagship exchange serves more than 49 million users globally, though it does not publicly disclose a breakdown of users in the EU.
Payments authorization expands EU scope
Under PSD2 rules, licensed institutions may execute payment transactions, facilitate credit transfers and direct debits, and maintain payment accounts across the EU.
According to the MFSA’s public authorization catalogue, Gate Technology is permitted to provide payment services as defined under Malta’s Financial Institutions Act, including enabling cash to be placed on and withdrawn from payment accounts and carrying out all operations required to operate the accounts.
Gate CEO Giovanni Cunti said the license positions the company to deliver compliant payment solutions to institutional and retail clients.
The MFSA listing confirms that the approval extends beyond crypto custody and exchange services to regulated account and transaction functionality.
However, Gate did not specify which payment products will launch first or when expanded EU services will roll out.
Cointelegraph reached out to Gate for more information but had not received a response by publication.
Related: Deutsche Bank-backed AllUnity launches Swiss franc stablecoin CHFAU
Part of broader EU compliance trend
Gate’s approval follows a similar move by another major exchange. On Feb. 16, OKX obtained a Malta Payment Institution license to support products including OKX Pay and the OKX Card.
Under MiCA, crypto-asset service providers integrating stablecoin payments into regulated financial rails must align with EU payments law. As a result, Payment Institution approvals are increasingly becoming a prerequisite for exchanges seeking to offer euro-denominated payment flows alongside crypto trading.
Magazine: Hong Kong stablecoins in Q1, BitConnect kidnapping arrests: Asia Express
Bitcoin’s (BTC) latest recovery has lifted sentiment across crypto markets, with traders pointing to renewed momentum after weeks of choppy price action.
However, the rebound has also revived something else: fresh allegations against Jane Street, a global quantitative trading firm and major liquidity provider. But how much of the circulating narrative is supported by evidence, and how much remains speculative? As the theory resurfaces, separating verifiable facts from online conjecture has become essential.
Jane Street’s Alleged 10 AM Bitcoin Sell-Off: Manipulation Theory or Market Myth?
Jane Street is dominating Crypto Twitter discussions, and the surge in attention extends beyond social media. Google Trends data shows that search interest for “Jane Street Bitcoin” recently reached an all-time high. This indicates a sharp rise in public curiosity.
Follow us on X to get the latest news as it happens
What is driving this renewed focus? A simple search on X reveals numerous posts linking Jane Street to Bitcoin’s price action. At the center of the discussion are allegations of a so-called 10 AM Eastern Time Bitcoin sell-off pattern.
Since 2024, Zero Hedge has repeatedly pointed to what it describes as a recurring pattern. According to him, Bitcoin often experiences a sharp decline around 10 AM ET. Jane Street is frequently named in connection with the theory.
Similar allegations surfaced in December 2025.
“Jane Street is one of the largest high-frequency trading firms in the world. They have the speed and liquidity to move markets for a few minutes. The behavior looks simple: 1. Dump BTC at the open. 2. Push the price into liquidity pockets. 3. Re-enter lower. 4. Repeat daily,” Bull Theory posted.
At the time, BeInCrypto reported that no regulator, exchange, or independent data source had confirmed any coordinated activity. Notably, new allegations against Jane Street surfaced recently after Terraform Labs’ administrator sued the trading firm.
“Who crashed Luna and UST to 0 and brought down the entire crypto market in 2022? Jane Street. The same Jane Street accused of ‘10AM manipulation’ also front-ran the 2022 Terra collapse,” Ash Crypto said.
Jane Street has denied any wrongdoing and stated that it intends to defend itself in court. Nonetheless, some analysts started making connections between the lawsuit’s timing and Bitcoin’s price.
Several commentators on X have alleged that the legal action against Jane Street may have paused the supposed 10 AM sell-offs. According to this narrative, the absence of the previously observed intraday declines allowed Bitcoin’s price to climb over the past two days.
In a detailed post, Justin Bechler suggested that the alleged “daily flash crashes” had previously stopped after the Terraform Labs lawsuit filings became public early last year.
However, he claims the 10 AM pattern later resumed in Q3 2025. By December, he said, the intraday declines had returned with full force.
“Basically, the 10 am dumps stopped the moment Jane Street had lawyers looking over its shoulder, and started again when the heat died down,” he wrote. “Bitcoin should be at least $150,000 right now, and everyone knows it. Yesterday, a federal lawsuit was filed in Manhattan that explains exactly why it isn’t.”
Bechler further noted that Jane Street disclosed a large IBIT position in its Q4 2025 13F filing. It also sharply increased its MicroStrategy holdings.
“This looks like bullish accumulation if you don’t understand what Jane Street actually is. Jane Street is one of only four firms authorized to conduct in-kind creations and redemptions for IBIT. The others are Virtu Americas, JP Morgan Securities, and Marex. Jane Street is also an authorized participant for Fidelity’s and WisdomTree’s Bitcoin ETFs,” he said.
According to him, this role gives the firm “direct access to the mechanism that connects ETF share prices to actual Bitcoin.” Bechler stated that Jane Street can transfer Bitcoin in and out of the ETF structure, arbitrage price differences between the fund and the spot market, and hold inventory positions on a scale far beyond that of a typical market participant.
He also added that a 13F only shows long stock positions but does not require disclosure of options, futures, or swaps.
“When Jane Street reports holding $790 million in IBIT shares, the filing tells you nothing about whether those shares are hedged by puts, offset by short futures, or wrapped in a collar that makes the firm’s net Bitcoin exposure zero or even negative,” he remarked.
He noted that the public only sees what appears to be an accumulation. In reality, the position could represent a significant short exposure that resembles a long, since the offsetting leg of the trade remains hidden under current disclosure rules.
A Form 13F, he added, is merely a snapshot of one side of the balance sheet. The other side is not visible to anyone outside the firm.
“If the firm holds $790 million in IBIT shares and offsets that position with $790 million in put options or short futures, the net exposure is zero. If the derivative book exceeds the equity position, the net exposure is negative, meaning Jane Street profits when Bitcoin’s price falls. In either scenario, the firm has every incentive to use its privileged position as authorized participant to suppress the spot price, trigger liquidations, and harvest the spread,” Bechler commented.
The Counterarguments: Volatility, Not Villainy
Not everyone is convinced. Several analysts pushed back, arguing the 10 AM pattern is overstated. Julio Moreno, Head of Research at CryptoQuant, directly questioned the narrative.
He noted that the mechanics described, buying Bitcoin on the spot market and selling futures, are not unusual. According to Moreno, this is “what any other delta neutral fund does.”
Moreno also pointed to the lack of a broader market context in the discussion. He stressed that overall Bitcoin spot demand growth has been collapsing since early October 2025, a trend he described as an obvious driver of the price decline.
Benjamin Cowen, CEO of Into The Cryptoverse, also weighed in. He argued that Bitcoin has historically rallied into early March during every midterm year. He added that each market cycle tends to produce its own narrative to explain price movements.
“Bitcoin price action is not a manipulated conspiracy,” he wrote.
Furthermore, Jeff Park, chief investment officer at ProCap and an adviser to Bitwise, suggested that the debate reflects a misunderstanding of how ETF plumbing actually works.
He mentioned that the focus on individual firms, such as Jane Street, overlooks the structural mechanics governing all Authorized Participants (APs) within the Bitcoin ETF framework.
Users on X also began pointing out that Jane Street appeared to have deleted every post from its account following the lawsuit. This further fueled speculation online.
However, that claim was quickly debunked. Economist Alex Krüger clarified that Jane Street had no posts on its X account to begin with.
“The amount of fake news and false narratives spread around in crypto is truly remarkable. Jane Street had no posts to delete. Can corroborate that on the Wayback Machine,” he posted.
Why the 10 AM Jane Street sell-off Theory Resonates
Retail traders have watched Bitcoin shrug off bullish developments, including MicroStrategy purchases and a favorable regulatory environment, while price action remained weak and sentiment slid into extreme fear. In that context, a simple and identifiable explanation can be compelling.
The apparent pause in the alleged 10 AM pattern following a high-profile lawsuit fits neatly into a correlation-as-causation narrative that often gains traction on Crypto Twitter.
However, correlation does not constitute proof. For now, the 10 AM theory remains merely an allegation, not a fact.
US spot Bitcoin funds extended their rebound Wednesday as BTC reclaimed $68,000, pulling in $506.5 million in inflows, the largest daily total since Feb. 2.
Bitcoin (BTC) exchange-traded funds (ETFs) are nearing a potential first week of inflows after five weeks of net outflows totaling $3.8 billion, with weekly inflows now at $560.4 million, according to SoSoValue data.
The gains mark two consecutive days of inflows, hinting at a possible upside following a massive February sell-off that wiped out $20 billion in net assets.
BlackRock’s IBIT leads inflows with $297 million as ETF trading rebounds
BlackRock’s iShares Bitcoin Trust ETF (IBIT) saw the largest share of inflows yesterday, attracting $297.4 million, according to Farside data.
The Bitwise Bitcoin ETF (BITB) and the Fidelity Wise Origin Bitcoin Fund (FBTC) followed with $39.4 million and $30.1 million in inflows, respectively.
Reflecting the recovering interest, ETF trading volumes rebounded above $4.3 billion, the highest level since Feb. 9.
Jane Street’s ETF controversy adds to mounting “paper Bitcoin” concerns
The renewed buying comes as some investors continue to debate how market structure affects Bitcoin price discovery, including the role of large market-making firms like Jane Street and authorized participants (APs) that help create and redeem ETF shares.
In rumors circulating on X following a recent lawsuit filed by Terraform Labs administrator Todd Snyder, Jane Street has been accused of influencing prices through derivatives exposure to BTC and market manipulation.
“The answer is trickier than the question,” Bitwise advisor Jeff Park noted in an X post on Wednesday, adding. “But it’s also more structurally unsettling than the conspiracy theory itself — and once you understand the actual mechanics, you won’t be able to unsee them,” he added.
“The short answer is that no AP explicitly suppresses Bitcoin price,” Park said, stressing that it’s rather the integrity of the price discovery mechanism that the AP structure can suppress.
“Those are not the same thing—but the second is arguably more consequential than the first,” he added.
Some analysts noted that selling pressure on Bitcoin has persisted since October 2025, raising doubts about the impact of individual players.
Related: ‘Bitcoin scarcity is dead’: Crypto executives push back on viral claim
Concerns over “paper Bitcoin,” in which firms trade without acquiring actual crypto, have lingered since early February, when The Kendall Report highlighted ETFs as a contributor.
The debate intensified recently after a mishap at South Korea’s Bithumb exchange, which mistakenly distributed 620,000 BTC it did not hold, underscoring ongoing questions about transparency and market integrity.
Magazine: Bitdeer sells all Bitcoin, Metaplanet rejects misconduct claims: Asia Express
WLFI proposes 180-day staking, ~2% APR to align governance and USD1 arbitrage.
Summary
- Unlocked WLFI must be staked at least 180 days to vote.
- Node (10m WLFI) and Super Node (50m WLFI) tiers add OTC USD1 access, incentives.
- Target ~2% APR from treasury; 7-day vote, 1b WLFI quorum for approval.
World Liberty Financial (WLFI) has introduced a governance reform proposal that would require token holders to stake their assets to participate in voting, according to a proposal document released by the organization.
The WLFI Governance Staking System proposes linking influence and rewards to token lock-up duration, representing a potential shift in how governance power is distributed within the WLFI ecosystem, the document stated.
Under the proposal, holders of unlocked WLFI tokens would be required to stake their tokens for a minimum of 180 days to vote on governance matters. Voting power would be calculated using a square root formula that factors in both the amount of tokens locked and the remaining duration of the lock-up, according to the proposal.
Participants who stake their tokens and vote at least twice during their lock period would be eligible for a base reward of approximately 2% annual percentage rate, funded directly from the WLFI treasury, the proposal stated.
The proposal introduces two participation tiers for large stakeholders. The Node Tier would require a minimum stake of 10 million WLFI tokens and provide access to over-the-counter conversion pathways for stablecoins such as USDT and USDC into USD1, along with additional rewards tied to conversion volume, according to the document.
The Super Node Tier would require a minimum stake of 50 million WLFI tokens and provide priority access to the WLFI team for partnership discussions and potential economic incentives, the proposal stated.
According to the proposal document, the system aims to redirect arbitrage value back into the ecosystem. The proposal states that institutional market makers captured a significant portion of arbitrage opportunities during the expansion of the USD1 stablecoin.
The proposal is open for a seven-day community vote and requires a minimum quorum of 1 billion eligible voting tokens to pass. If approved, implementation would roll out in three phases, beginning with the activation of governance staking for all holders of unlocked WLFI tokens, according to the proposal.
- Centrifuge price exploded by more than 180% to hit highs of $0.25.
- The sharp rise followed as news of CFG trading going live on Upbit.
- Profit-taking threatens to wipe out all the intraday gains as the price hovers near $0.16.
Centrifuge (CFG) has surged dramatically in the past 24 hours, posting gains of over 180% amid excitement over its listing on South Korea’s largest crypto exchange, Upbit.
Notably, the rally aligns with broader market gains, as Bitcoin climbed about 7% to near $70,000 before settling around $68k as of writing.
Several top altcoins also posted positive moves, including Ethereum’s uptick to above $2,000 despite continued selling by co-founder Vitalik Buterin.
On-chain data shows whale accumulation is picking up and could surge as price breaks above the $2k level.
CFG is up amid this potential market bounce, with the Upbit listing a major catalyst.
However, the overall crypto market sentiment remains cautious, and profit-taking could see a sharp pullback for several altcoins.
Centrifuge price rockets on Upbit listing news
Upbit, South Korea’s leading crypto exchange, announced that trading support for CFG would go live on February 26, 2026, at 2 PM KST.
The exchange added spot pairs against KRW, BTC, and USDT, and revealed that deposits and withdrawals would be available shortly after the announcement.
Upbit boasts a massive user base and liquidity, and these factors have historically seen listed tokens pump hard.
CFG’s price rose sharply amid the potential flip in visibility and adoption.
The token’s value jumped from around $0.08 to over $0.25, with trading volume spiking over 4,000% to $79 million.
With assets like Polkadot, NEAR, and Uniswap trending among the top 10 gainers, it’s Centrifuge’s vertical jump that stood out.
CFG market cap ballooned past $120 million before slipping lower as prices retreated from the intraday highs.
Centrifuge price forecast
Centrifuge is a crypto project focused on tokenizing real-world assets (RWAs), a market that’s attracting huge attention.
The CFG token powers governance on the platform, allowing holders to participate in protocol decisions.
Despite market potential, its price has largely followed the bearish trend across crypto.
A short-term upside tied to Upbit’s liquidity influx helped bulls revisit prices last seen in October 2025.
If Korean inflows persist, buyers could test higher resistances around $0.30 and move to $0.40.
However, broader profit deals have already seen CFG pull back, currently trading near $0.16.
The MACD suggests bullish sentiment, but an extended RSI signals overbought risks.
If prices fall below the 50-day and 100-day simple moving average lines, the nosedive could accelerate to $0.10 or lower.
Key insights:
- Perplexity Computer combines research, coding, design, and deployment in one system, reducing reliance on multiple AI tools.
- The company shifts to subscriptions and expands features, including patents search, shopping, and Galaxy voice assistant support.
- AMD and Meta sign a long-term AI infrastructure deal using Instinct GPUs and custom chips to power large-scale model training.
Perplexity introduces unified AI workspace
Perplexity AI unveiled Perplexity Computer, a platform that manages projects from idea to deployment inside a single environment. The system allows users to research information, design products, write code, and launch applications without switching services.
Introducing Perplexity Computer.
Computer unifies every current AI capability into one system.
It can research, design, code, deploy, and manage any project end-to-end. pic.twitter.com/dZUybl6VkY
— Perplexity (@perplexity_ai) February 25, 2026
The company reported that the platform also monitors live operations after deployment. Developers can review performance and adjust workflows directly within the interface. Perplexity aims to reduce fragmented workflows that often slow production across multiple AI tools.
Expanding products and subscription strategy
Perplexity has diversified its products over the last one year. In October 2025, it published Perplexity Patents, a component that enables end-users to query filings of global intellectual property using natural language queries. The tool is aimed at researchers, startups and law firms in need of quicker patent analysis.
The firm also partnered with Samsung to integrate its assistant, branded “Hey Plex,” into Galaxy devices. Meanwhile, U.S. Pro users gained an in-app shopping feature linked with commerce platforms such as Shopify. The company ended advertising trials and moved toward a subscription model, citing trust and answer neutrality as priorities.
AMD and Meta scale AI infrastructure
Separately, AMD (NASDAQ: AMD) and Meta (NASDAQ: META) announced a multiyear AI infrastructure agreement valued by analysts near $100 billion. AMD will supply up to six gigawatts of Instinct GPUs for training and inference workloads in Meta’s systems.
The companies will coordinate silicon, hardware systems, and software development to improve efficiency. Meta will also receive custom chips based on AMD’s MI450 architecture. Initial shipments are scheduled for the second half of the year.
Meta already operates millions of AMD EPYC processors and large numbers of MI300-series GPUs. The new agreement expands collaboration within the Open Compute Project and strengthens Meta’s computing capacity for future AI models.
As the USD/JPY chart shows, the pair posted solid bullish momentum in the second half of February. This move was driven by a combination of fundamental factors, including:
→ The appointment of two academics to the central bank’s board, both regarded as strong advocates of economic stimulus through a weaker yen and accommodative lending conditions.
→ Concerns over further interest rate hikes, voiced by Japanese Prime Minister Sanae Takaichi during a meeting with Bank of Japan Governor Kazuo Ueda.
Expectations of a softer yen led to renewed weakness in the currency (A→B), forming the upward trajectory highlighted in purple.
However, on Wednesday the pair retreated, which appears to be an interim pullback from point B. Technical analysis of the USD/JPY chart suggests that extending the move along the purple trajectory may prove challenging.
Factors that could favour the bears include:
→ The median line of the ascending channel (constructed from key reversal points marked by thicker lines). The median often acts as a balance zone where supply and demand converge and trends lose momentum.
→ The proximity of the significant 157.70 resistance level, which already acted as resistance in 2025. Although price broke above it in January 2026 (with the level briefly showing signs of support), following the sharp sell-off on 23 January it once again served as a barrier for bulls on 9 February.
→ Trend line R, drawn through the lower highs of 2026.
Therefore, it cannot be ruled out that the lower purple boundary may be breached by bears, potentially leading the market into a period of consolidation while awaiting fresh economic and political catalysts.
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The US Office of the Comptroller of the Currency (OCC) has dropped a 376‑page proposal to implement the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act that looks to settle the ongoing stablecoin yield fight.
The proposal is open to public comment for 60 days from Wednesday’s publication date, and sets out detailed rules for permitted payment stablecoin issuers under the OCC’s jurisdiction.
Supervised entities would be barred from paying any form of interest or yield, whether in cash, tokens, or other consideration, “solely in connection with the holding, use, or retention” of a payment stablecoin, consistent with section 4(a)(11) of the GENIUS Act.
Thania Charmani, partner at global law firm Winston & Strawn, commented on X that the OCC proposed to “resolve the debate on stablecoin yield through rulemaking,” potentially clearing the way for the Digital Asset Market Clarity Act of 2025 (CLARITY) to “proceed without that provision.”
How the OCC proposal implements GENIUS on yield
GENIUS, enacted in July 2025, created a federal framework for payment stablecoins and restricted issuance in the US to licensed permitted issuers such as bank subsidiaries, new federal stablecoin issuers, and certain large state‑regulated firms.
The OCC’s draft rule translates that statutory framework into operational constraints, including tight limits on how GENIUS‑regulated issuers can structure economics around their stablecoins.
The proposal goes a step further, adding a rebuttable presumption that an issuer is violating the ban on paying yield if it has an arrangement to pay yield to an affiliate or “related third party” and that entity then pays yield to holders of the issuer’s payment stablecoin.
Related: Ripple CEO confirms White House meeting between crypto, banking reps
Issuers can try to rebut the presumption by submitting written materials to the OCC, but the agency stresses the “close nexus” between issuer payments and end‑holder yield and frames such structures as “highly likely” attempts to evade the statute.
The proposal also draws two explicit carve‑outs. It “is not intended to prevent” merchants from independently offering discounts for using payment stablecoins, and it does not bar an issuer from sharing profits from the stablecoin with a non‑affiliate partner in a whitelabel arrangement.
What the proposal means for CLARITY and Coinbase
If the OCC’s proposed rule is finalized as drafted, it would have direct implications for the separate CLARITY Act debate over stablecoin rewards.
CLARITY drafts have focused on whether digital asset service providers should be allowed to pay yield or rewards on payment stablecoin balances, a point of contention that has already caused friction between industry stakeholders, such as Coinbase.
By using GENIUS implementation to prohibit yield at the issuer level, the banking side of the framework effectively establishes a no‑yield baseline for GENIUS‑compliant payment stablecoins.
For Coinbase and similar firms that have argued they should be able to offer yield on stablecoin balances while operating within a fully regulated US framework, the message is clear:
Stablecoin yield and GENIUS‑compliant, OCC‑supervised payment stablecoins are being put on opposite sides of a regulatory line.
Big Questions: Is China hoarding gold so yuan becomes global reserve instead of USD?
In the traditional DeFi model, capital is often “locked.” Whether it is sitting in a lending vault or providing liquidity in a DEX, that capital is siloed — restricted to one protocol, one function, and one yield source at a time. For users, this fragmentation creates a “liquidity trap,” forcing them to manually bridge their assets between platforms, incur high gas costs, and miss out on real-time market opportunities.
Today, Venus Protocol, the leading lending platform on BNB Chain, and Fluid, the pioneers of a connected liquidity architecture that unifies lending, borrowing, trading into a single system of modular liquidity infrastructure, are proud to announce a strategic alliance. Together, we are launching Venus Flux—the first Unified Liquidity Layer designed specifically for the BNB Chain ecosystem.
What is Venus Flux?
Let your liquidity Flux, watch your yield grow.
Venus Flux is not just a new interface, it represents a fundamental re-engineering of how capital moves onchain. By integrating Fluid’s unified liquidity architecture, which connects lending positions, borrowing capacity, and DEX liquidity at the protocol level, Venus Flux introduces a new Smart Liquidity engine for BNB Chain.
Instead of remaining idle, deposited assets are transformed into a dynamic liquidity stream. With a single deposit, users can simultaneously access lending, borrowing, and trading liquidity within one unified system-maximizing capital efficiency without manual coordination.
Core Capabilities: Lend, Borrow, Multiply, Swap
Venus Flux simplifies the complex DeFi landscape into four integrated pillars:
- Lend (Automated Optimization): Users can supply assets to the Liquidity Layer through Lend. These funds are deposited into a shared, protocol-agnostic pool that can be utilized across the entire stack, automatically routing capital to optimized yield sources without requiring users to manage multiple positions.
- Borrow (Capital Efficiency Redefined): Leveraging Fluid’s advanced liquidation engine, users can access higher Loan-to-Value (LTV) ratios than previously possible on BNB Chain, allowing for greater borrowing power with lower liquidation friction.
- Multiply (One-Click Leverage): For power users, the Multiply feature automates complex looping strategies. Amplify your exposure and yield with a single transaction, removing the need for tedious manual cycles.
- Swap (Integrated Liquidity & Execution): The native DEX embedded into the protocol allows users to swap directly within Flux, enabling efficient position rebalancing, liquidation handling, leverage execution and unwinding. By integrating swaps at the protocol layer, Flux minimizes friction, reduces transaction overhead, improves liquidation outcomes and ensures optimal execution across Lend, Borrow, Multiply and flows.
The Innovation Frontier: Smart Debt & Smart Collateral
The defining strength of Venus Flux lies in its proprietary “Smart” features that unite lending and trading into one fluid experience:
- Smart Collateral： Traditionally, collateral is “dead” capital. With Venus Flux, your collateral works double-time. It can simultaneously act as liquidity in a DEX (earning swap fees) while continuing to back your loan. This creates a multi-layered yield stack from a single capital base.
- Smart Debt：It allows you to turn your borrowed funds into productive liquidity by routing them into DEX AMM positions. Rather than being purely a cost, the debt can earn trading (LP) fees, which can offset the borrowing cost (APR). In certain market conditions, it may even generate positive yield—so you can borrow while still being paid.
How the Liquidity Layer Works Under the Hood
The Liquidity Layer serves as the core of the overall architecture, holding and managing all system-wide liquidity. All ledger states and accounting are unified and settled at this layer, ensuring a single, reliable source of truth across the system.
When users deposit assets, those funds can be automatically rebalanced across different protocols without requiring manual intervention. For example, assets designated as Smart Collateral are recorded as supplied liquidity within the lending index system while simultaneously being deployed as LP positions in DEX protocols.
These assets dynamically rebalance according to AMM mechanics, allowing capital to shift as needed. Thanks to the Liquidity Layer, users do not need to manually move assets between protocols—their positions are automatically reconciled and reflected in their balances through the unified settlement layer.
Because liquidity is shared across protocols, Smart Collateral can earn lending yield while simultaneously capturing DEX LP fees, significantly improving overall capital efficiency.
A Strategic Alliance for the BNB Ecosystem
This collaboration combines the strengths of two DeFi powerhouses. Venus Protocol provides the liquidity depth and long-standing trust of a BNB Chain pioneer, while Fluid provides the technological velocity to make that liquidity smarter and more efficient.
“Venus Flux represents a leap forward in our mission to provide the most robust and capital-efficient money markets on BNB Chain,” said Leon, Head of BD at Venus Labs.
“By partnering with Fluid, we are delivering a more advanced lending market experience to our users while introducing a new DEX product within the Venus ecosystem.”
“Venus Protocol is the biggest and most trusted money market on BNB Chain, with scale and real user demand that few protocols achieve,” said Samyak Jain, Co-Founder and CTO at Fluid.
“Bringing Fluid’s Liquidity Layer to Venus Flux is exciting because it allows that liquidity to move more efficiently across lending, borrowing, and trading — unlocking institutional-grade market mechanics for institutions, professional traders, and retail users alike.”
The Future of BNB Chain Starts Now
Venus Flux is now live, paving the way for a more liquid, transparent, and optimized financial future on BNB Chain. Whether you are a retail user looking for a “set-and-forget” yield or a DeFi native seeking to push capital efficiency to its limit, the era of Unified Liquidity has arrived.
Experience the FLUX. Grow your yield. Visit Venus Flux to get started.
About Venus Protocol
Venus is the leading lending protocol on the BNB Chain. Established in 2020, Venus was the first lending protocol and continues to provide the deepest lending liquidity for key assets on the BNB Chain.
About Fluid
Fluid is the world’s most capital-efficient Liquidity Layer for finance that can support an entire ecosystem of financial products on top of it. Connects lending, borrowing, trading and more financial products into one seamless onchain system.
With $5B+ in Total Market Size and $190B+ in cumulative volume, Fluid is redefining capital efficiency across finance.
Crypto World
Is Jane Street holding Bitcoin below $150K? Jeff Park explains the “grey window” in ETFs
As Bitcoin enthusiasts question why the digital asset hasn’t yet hit the $150,000 milestone despite massive ETF inflows, Jeff Park, Head of Alpha Strategies at Bitwise, has provided a sobering look at the plumbing of the financial system.
Summary
- Jeff Park, Head of Alpha Strategies at Bitwise, argues Bitcoin’s failure to hit $150,000 isn’t manipulation but ETF structure.
- Authorized Participants (APs) can hedge ETF exposure using futures instead of buying spot Bitcoin, weakening the direct link between ETF inflows and price appreciation.
- The shift to in-kind redemptions and OTC sourcing may reduce public exchange buying pressure, potentially muting Bitcoin’s explosive upside.
Bitwise’s Jeff Park says Bitcoin ETFs, not Wall Street, are capping BTC price
In a detailed post on X, Park argues that the “villain” isn’t a single firm like Jane Street, but rather the structural architecture of the Bitcoin (BTC) ETF itself.
According to Park, Authorized Participants (APs) operate within a “grey window” of Regulation SHO. While standard traders must locate shares before shorting, APs are exempt due to their role in creating and redeeming ETF shares.
This allows them to maintain positions with a level of capital efficiency and duration that is “indistinguishable from a regulatory arbitrage.”
The most critical revelation involves how these institutions hedge. Typically, an arbitrageur would buy spot Bitcoin to close a price gap.
However, if an AP chooses to hedge using Bitcoin futures instead of the underlying asset, the “spot was never bought.” This breaks the link between ETF demand and spot price appreciation.
Furthermore, the recent transition to “in-kind” redemptions has removed the “structural governor” that previously forced spot buying. APs can now source Bitcoin through private OTC desks with minimal market impact, effectively bypassing the public exchanges where price discovery happens.
Park concludes that while no firm is explicitly “manipulating” the market, the current regulatory framework, designed for traditional assets, is fundamentally at odds with Bitcoin’s mission.
The result is a system where the “middle” of the trade escapes categorization, potentially muffling the explosive price growth investors expected.
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