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Vitalik Buterin Donates to Shielded Labs for Zcash Crosslink Security Upgrade

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21Shares Introduces JitoSOL ETP to Offer Staking Rewards via Solana

TLDR:

  • Buterin’s donation funds Crosslink development from prototype to incentivized testnet and production phase. 
  • Crosslink adds finality layer to Zcash’s PoW chain, preventing reversals and strengthening settlement guarantees. 
  • The upgrade enables shorter exchange confirmations and improves cross-chain integration reliability for Zcash. 
  • Shielded Labs operates independently from Zcash Dev Fund, relying on donations from network supporters.

 

Ethereum co-founder Vitalik Buterin has donated to Shielded Labs to advance Crosslink development for Zcash. The contribution will fund progression from prototype to incentivized testnet and production readiness.

Crosslink adds a finality layer to Zcash’s proof-of-work consensus, protecting against chain reorganizations and rollback attacks. This marks Buterin’s second donation to the organization.

Crosslink Enhances Zcash Security Architecture

Shielded Labs announced the donation will support Crosslink’s continued development. The upgrade strengthens Zcash’s existing proof-of-work consensus through a parallel finality layer.

Block production and economic activity remain on the proof-of-work chain. Meanwhile, the finality gadget anchors blocks and provides stronger settlement guarantees.

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The architecture prevents confirmed transactions from being reversed. This reduction in double-spend risk increases confidence in transaction settlement across the network.

Exchanges can implement shorter confirmation requirements as a result. Cross-chain integrations gain improved reliability through the enhanced security model.

Applications requiring predictable settlement benefit from the increased consistency. The improvements facilitate easier integration into the broader crypto ecosystem.

Zcash maintains its existing security properties throughout the upgrade process. The design preserves the network’s core characteristics while adding protective measures.

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Commenting on the donation, Buterin stated that Zcash is one of the most honorable crypto projects. He praised the network’s steadfast focus on privacy as a defining characteristic.

According to Buterin, Shielded Labs’ Crosslink work will allow Zcash to be more secure. The upgrade will enable operation on a lower security budget, supporting long-term sustainability.

Production Phase Will Focus on Technical Readiness

The donation will fund the productization of the existing Crosslink prototype. Shielded Labs plans to launch a persistent, incentivized testnet where participants can earn ZEC.

The transition into productionization involves multiple technical components. Design specifications require completion before mainnet consideration.

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Security analysis will form a critical component of the development process. Audits will verify the robustness of the finality layer implementation.

Coordination with wallets and infrastructure providers ensures smooth integration. Proactive engagement with the Zcash community maintains transparency throughout development.

Progress toward mainnet activation depends on several factors. Technical readiness must meet established standards before deployment.

Security review processes need completion to validate the upgrade’s safety. Broad community support remains essential for major protocol changes.

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Shielded Labs operates as a Swiss-based Zcash support organization. The team focuses on protocol development projects that strengthen network security.

Funding comes from donations by Zcash holders and supporters. The organization maintains independence from the Dev Fund and block rewards.

Buterin’s first contribution in 2023 supported formation of a dedicated Crosslink team. He has contributed to discussions around protocol design and security for years.

Shielded Labs acknowledged his continued engagement with the Zcash ecosystem. The organization expressed appreciation for his support in advancing network resilience.

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Ansem Says Ethereum Is in a Worse Spot Than 2023 as Thesis Weakens

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Ethereum Price Prediction

Crypto analyst Ansem argues that Ethereum (ETH) is in a “worse spot” in 2026 than it was in 2023, pointing to a thesis he says has been eroding for years.

His bearish take drew rebuttals from some members of the community. Meanwhile, on-chain activity and technical indicators elsewhere on the network flash bullish signals.

Ansem Lists Cracks in the ETH Thesis

Ansem argues that Solana (SOL) has dominated retail activity this cycle. Hyperliquid has taken the lead in perpetual futures trading, while rollups have failed to gain traction.

He also noted that Vitalik Buterin “publicly abandoned” the general-use rollup thesis. The ongoing Aave (AAVE) situation around the KelpDAO rsETH exploit, Ansem said, is a mark on  Ethereum’s core value proposition of “safety + security of defi & insto interest.

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“ETH thesis has been weakening consistently for years,” the analyst wrote. ETH in 2026 is in a worse spot than it was in 2023, amplified by AI doing extremely well & tech stocks being much more favorable investments with real revenues / emerging narratives / increasing momentum, ETH is a $300B asset with a ton of overhang from Tom Lee topblasting + complacent ETH holders sitting idle in defi protocols.”

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Technically, the analyst noted that ETH remains in a sustained downtrend after failing to break multi-year resistance. He projected that the second-largest cryptocurrency could slip to 2025 lows near $1,300 and to the bear-market lows from 2022.

“Tight invalidation 2377 assuming problems worsen if you want to play it loose assuming other risk assets continues doing well & drags it up probably somewhere around 2700/2800 invalidation fundamentals wise would want to see breakout activity from some new vertical,” the post read.

Ethereum Price Prediction
Ethereum Price Prediction. Source: X/Ansem

Community Members Push Back

The take triggered notable pushback. Ryan Berckmans accused Ansem of not understanding fundamentals. Leo Lanza went further, sharply dismissing the analyst’s bearish case on X.

Another user pointed to a 56% drop in the SOL/ETH pair this cycle.

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“Soleth is down 56% after being up 12x+ *this cycle* because one guy decided to buy 5% of the eth supply after it had underperformed all cycle. idk why you guys act like i dont also bearpost solana i havent posted anything bullish about sol in over a year,” Ansem replied.

Not everyone shares the bearish view on Ethereum. BeInCrypto recently highlighted that network activity remains strong, while technical indicators like the Rainbow Chart and MACD are also flashing bullish signals.

With macro and geopolitical uncertainty still in play, the question is whether ETH slides further this year or stages a renewed rally.

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The post Ansem Says Ethereum Is in a Worse Spot Than 2023 as Thesis Weakens appeared first on BeInCrypto.

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Aave’s TVL Falls $8B After $293M Kelp DAO Hack

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Aave’s TVL Falls $8B After $293M Kelp DAO Hack

Total value locked on decentralized lending protocol Aave dropped by nearly $8 billion over the weekend after hackers behind the $293 million Kelp DAO exploit borrowed funds on Aave, leaving roughly $195 million in “bad debt” on the protocol and triggering withdrawals.

Data from DeFiLlama shows that Aave’s TVL fell from about $26.4 billion to $18.6 billion by Sunday, losing the top spot as the largest DeFi protocol. 

Aave v3’s lending pools for USDt (USDT) and USDC (USDC) are now at 100% utilization, meaning that more than $5.1 billion worth of stablecoins cannot be withdrawn until new liquidity arrives or borrows are repaid. 

$2,540 is available to be withdrawn from the $2.87 billion USDT pool on Aave v3 at the time of writing. Source: Aave

Aave’s TVL fall shows how rapidly risk from a single security incident can spread throughout the broader, interconnected DeFi lending market, potentially leading to a severe liquidity crisis.

The incident began on Saturday when hackers stole 116,500 Kelp DAO Restaked ETH (rsETH) tokens worth about $293 million from Kelp DAO’s LayerZero-powered bridge and used them as collateral on Aave v3 to borrow wrapped Ether (wETH).

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Crypto analytics platform Lookonchain said the move created about $195 million in “bad debt” on Aave, which contributed to the Aave (AAVE) token tanking nearly 20% from $112 on Saturday at 6:00 pm UTC to $89.5 about 25 hours later. 

Lookonchain noted that some of the largest crypto whales to withdraw funds from Aave were the MEXC crypto exchange and Abraxas Capital at $431 million and $392 million, respectively.

Source: Grvt

Several crypto networks and protocols tied to rsETH or the LayerZero bridge have paused use of the bridge until the problem is resolved, including DeFi platform Curve Finance, stablecoin issuer Ethena and BitGo’s Wrapped Bitcoin (WBTC).

Aave has frozen several rsETH, wETH markets

Shortly after the Kelp DAO exploit, Aave said it froze the rsETH markets on both Aave v3 and v4 to prevent any suspicious borrowing and later stated that rsETH on Ethereum mainnet remains fully backed by underlying assets.

WETH reserves also remain frozen on Ethereum, Arbitrum, Base, Mantle and Linea, Aave said.

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This incident marks the first significant stress test of Aave’s “Umbrella” security model, which was introduced in June 2025 to provide automated protection against protocol bad debt while enabling users to earn rewards.

Related: Aave DAO backs V4 mainnet plan in near-unanimous vote

Earlier this month, the Bank of Canada found that Aave avoided bad debt in its v3 market by using overcollateralization, automated liquidations and other strategies that shifted risk to borrowers.

In comments to Cointelegraph, Aave defended its liquidation-based model, framing it as a core safety mechanism that protects lenders while limiting downside for borrowers.

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It comes as Aave parted ways with its longest-standing DeFi risk service provider, Chaos Labs, on April 6, following disagreements over the direction of Aave v4 and budget constraints.

Magazine: Are DeFi devs liable for the illegal activity of others on their platforms?