GizmoLab Report: Cutting-Edge Developments in Web3📈

A Quick TL;DR:

- Ondo Enables 24/7 PYUSD to OUSG Conversions

- Dogecoin Lawsuit Against Musk Ends Amid Market Rally

- dYdX OKs Revenue-Sharing Plan

- Thumzup Invests in Bitcoin Reserves

- ME Bitcoin Friday Futures See Significant Uptick in Institutional and Retail Interest

- U.S. Prosecutors to Reduce Crypto Crackdowns Following Trump’s Re-Election

Ondo Finance Launches Instant 24/7 Conversions Between PayPal USD and Tokenized U.S. Treasuries Fund OUSG 

Ondo Finance has unveiled a groundbreaking feature allowing 24/7 instant conversions between PayPal USD (PYUSD) and its tokenized short-term U.S. treasuries fund, OUSG. This development enables investors to seamlessly move funds in and out of OUSG, enhancing liquidity and broadening the utility of PYUSD across real-world assets (RWA). OUSG, a tokenized fund with its portfolio heavily invested in the BlackRock USD Institutional Digital Liquidity Fund, aims to merge the benefits of traditional finance with decentralized finance (DeFi). The feature coincides with PayPal’s recent announcement supporting PYUSD transfers on Ethereum and Solana via LayerZero. By integrating these services, PYUSD holders can now invest in or exit OUSG positions anytime, addressing redemption liquidity and expanding reliable settlement solutions.

Ondo Finance’s CEO, Nathan Allman, emphasized the platform's role at the intersection of traditional finance and DeFi. This initiative reflects a growing trend in tokenized RWAs, which have seen rapid adoption. The global tokenized U.S. treasuries market surged from $100 million at the start of 2023 to over $2.3 billion by late 2024. Similarly, the broader RWA on-chain market has grown to $13.1 billion, fueled by issuers like BlackRock and Franklin Templeton. With products like OUSG offering low-risk, high-yield opportunities in tokenized cash equivalents, Ondo Finance’s move is poised to attract more qualified investors seeking innovative financial solutions.

Dogecoin Investors Drop Class-Action Lawsuit Against Elon Musk Amid Cryptocurrency Market Surge

Dogecoin (DOGE) investors have ended their class-action lawsuit against Elon Musk, alleging price manipulation during the memecoin’s 2021 surge. The case, initially dismissed on August 29, saw both Musk and investors file cross-motions and appeals. The appeal and motions were formally dropped on November 14 in federal court in Manhattan, pending approval by U.S. District Judge Alvin Hellerstein. The lawsuit stemmed from Dogecoin's dramatic rise in mid-2021, fueled by Musk’s tweets and public appearances. DOGE jumped from under $0.10 to $0.70, prompting accusations that Musk manipulated its price for personal gain through timed trades and exaggerated claims about the coin's potential as a global financial standard. Musk’s humorous statements, including plans to launch a literal Dogecoin to the moon, were deemed aspirational and not legally actionable by Judge Hellerstein in his earlier dismissal.

Interestingly, the case conclusion coincided with Musk’s appointment as head of President-elect Donald Trump’s "Department of Government Efficiency," dubbed "DOGE." The initiative aims to bring structural reform through an entrepreneurial approach. Dogecoin’s market performance surged alongside this development. Trading at $0.36 at the time of reporting, DOGE more than doubled since Election Day on November 5, with a market cap of $53 billion, ranking as the sixth-largest cryptocurrency. Created in 2013 as a meme-based joke by Billy Markus and Jackson Palmer, Dogecoin has since garnered significant popularity. Musk, who has denied actively trading DOGE, maintains his interest in the coin for its humor and meme culture, dismissing allegations of insider trading and claims of owning suspicious wallets. This marks the conclusion of over two years of legal contention.

dYdX Community Approves Revenue-Sharing Proposal to Boost Liquidity and Competitiveness

The dYdX Foundation has announced the approval of a critical revenue-sharing proposal by the community, aimed at enhancing the decentralized exchange’s (DEX) tokenomics and competitiveness. Passed on November 15, the proposal allocates 50% of protocol revenue to the MegaVault and 10% to the Treasury SubDAO. The expedited vote had a 76.99% turnout, with over 155 million DYDX tokens cast, representing 89% approval. This decision follows a proposal introduced by Nethermind on October 22, focusing on boosting DYDX token utility and protocol competitiveness against rivals like Hyperliquid. The MegaVault will receive half of the dYdX Chain’s revenue to incentivize user participation and liquidity provision. This feature allows users to deposit USDC stablecoins and earn yield, supporting the perpetual decentralized exchange’s operations.

The Treasury SubDAO allocation will complement staking rewards, reinforcing the network's security through validator incentives. The proposal emphasizes that maximizing liquidity is critical for dYdX’s competitive advantage. By channeling significant revenue into the MegaVault, the protocol aims to ensure its total value locked (TVL) remains robust, benefiting users and the broader ecosystem. Since its launch on October 26, 2023, the dYdX Chain has facilitated over $232 billion in trading volume. Validators and stakers have earned more than $39 million, reflecting the platform's active engagement. The approved revenue-sharing mechanism is set to further strengthen dYdX’s position in the decentralized finance (DeFi) market.

Thumzup Media Corporation to Allocate $1 Million to Bitcoin as Treasury Reserve Asset

German authorities have shut down 47 cryptocurrency exchanges, accusing them of fostering an underground economy that facilitated cybercrime. The seized platforms were allegedly involved in laundering criminally obtained funds and allowing ransomware operators, botnet users, and black market traders to convert illicit funds into regular currency. Authorities, including Germany's federal criminal police and cybercrime office, issued a warning to users of the platforms, stating that they have access to transaction data, registration details, and IP addresses.

While authorities plan to investigate and prosecute some users, they acknowledged that cybercriminals residing in countries with less stringent laws may evade German law enforcement. One of the largest platforms seized, Xchange.cash, had reportedly facilitated 1.3 million transactions for 410,000 users since 2012. Other notable exchanges include 60cek.org, Baksman.com, and Prostocash.com. The German government’s action sends a clear message that cryptocurrency platforms used for illegal activities are under scrutiny.

CME’s Bitcoin Friday Futures Witness Surge in Institutional Demand and Retail Engagement

The Chicago Mercantile Exchange (CME) reports a surge in demand for its Bitcoin Friday Futures (BFF) contracts, launched on September 30. These weekly contracts have already traded over 380,000 units, equivalent to more than $500 million, with a daily average volume of 12,400 contracts, representing $16.9 million in notional value. CME Group’s Global Head of Cryptocurrency Products, Giovanni Vicioso, stated that open interest averages 7,900 contracts daily, totaling $10.5 million. The peak occurred on November 6, the day after the U.S. election, with 26,000 contracts traded. Designed to address affordability challenges posed by bitcoin’s rising value, BFF contracts are CME’s smallest bitcoin-based product, priced at 1/50th of a bitcoin. This feature appeals to institutional investors managing short-term risks and retail traders seeking lower-cost market access.

A distinguishing aspect of BFF is its weekly settlement cycle, unlike the monthly cycle of traditional bitcoin futures. Contracts are listed every Thursday evening and settle in cash based on the CME CF Bitcoin Reference Rate New York Variant (BRRNY). Vicioso emphasized that the shorter duration helps traders track bitcoin’s price movements more closely and manage event-driven volatility. Institutions are increasingly using BFF contracts to handle market fluctuations, while retail traders benefit from their flexibility and reduced size. The significant engagement highlights the evolving bitcoin derivatives market, as BFF contracts enhance accessibility and cater to diverse trading needs. This demand showcases growing institutional participation alongside broader retail adoption in the digital asset space.

U.S. Prosecutors to Reduce Crypto Crackdowns After Elections

The U.S. Attorney’s Office in Manhattan announced plans to downsize litigation against cryptocurrency firms, signaling relief for the industry. The shift follows major legal victories, including FTX founder Sam Bankman-Fried’s conviction and record settlements with Binance and Terraform Labs post-2022 crypto crash. The announcement aligns with President Donald Trump’s re-election and his appointment of Jay Clayton, former SEC chair, as the U.S. Attorney for the Southern District of New York. This office has historically overseen key blockchain-related cases. Industry leaders view this development as a potential policy reset toward clearer compliance and regulatory frameworks. Crypto firms like Coinbase and Ripple have long advocated for well-defined digital asset rules. President Trump has hinted at changes in the SEC's leadership, with Chair Gary Gensler signaling a possible early retirement. Broader regulatory shifts may also impact other agencies like the Treasury and Comptroller of Currency.

Nic Carter, a prominent industry commentator, has highlighted “Operation Choke Point 2.0,” alleging coordinated efforts to limit crypto firms’ access to financial services. However, his recent discussions in Washington suggested bipartisan support for stablecoins and optimism for regulatory improvements. Rebecca Rettig, Polygon’s chief legal and policy officer, noted progress in U.S. crypto regulations, predicting stablecoin legislation by 2025. She foresees a framework potentially surpassing Europe’s MiCA regulations, shaped by a proposed crypto council under Trump’s administration. This council aims to unite industry leaders, law enforcement, and policymakers to guide U.S. crypto regulation. Its approach may blend legislative and agency rulemaking, creating a clearer structure for market participants. Industry sentiment points to a new era of collaboration and clarity for digital assets in the U.S

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