Ethereum Layer-2 Project MegaETH Faces Setback with $400M Refund Amid Stablecoin Launch Issues
In a surprising turn of events, ethereum Layer-2 scaling solution MegaETH has announced it will refund $400 million in pre-deposits following a botched stablecoin launch. The project admitted to 'sloppy execution' after a misconfigured multisig transaction prematurely reopened deposits, pushing inflows past the intended $250 million cap. This incident highlights the challenges of launching complex DeFi products on Ethereum's Layer-2 networks. As of December 2025, the team is working to address the technical issues while maintaining transparency with its community. The refund process demonstrates MegaETH's commitment to user protection, potentially strengthening trust in the long term despite this temporary setback.
MegaETH to Refund $400M in Pre-Deposits After Botched Stablecoin Launch
Ethereum Layer-2 project MegaETH will refund all pre-deposits for its USDm stablecoin after operational failures derailed the launch. The admission of 'sloppy execution' comes as the team scrambles to address a misconfigured multisig transaction that prematurely reopened deposits, pushing inflows past $400 million.
The debacle began when a third-party bridge outage stalled the initial $250 million cap. Upon resuming, deposits hit the limit within minutes. A decision to raise the cap to $1 billion triggered the multisig error, compounding the chaos. Refunds await a smart-contract audit, with plans for a new USDC-USDm bridge before mainnet beta.
Balancer Protocol Unveils Compensation Plan for LPs After $116M DeFi Breach
Balancer DAO has released a detailed compensation roadmap following the November 3 exploit that drained $116 million from its v2 vaults. The plan outlines asset redistribution, whitehat rewards, and claim procedures for affected liquidity providers.
Whitehat rescuers will receive 10% bounties in rescued tokens under the SAFE Harbor Agreement, while recovered funds totaling $27.7 million (including $19.7 million handled by StakeWise) will be distributed based on network-specific rules. The Ethereum, Polygon, Arbitrum, and Base chains were impacted by the cross-chain attack.
The proposal emphasizes transparency and community-centric design, marking a critical step in restoring confidence after one of 2025's largest DeFi incidents. Liquidity providers must now follow prescribed steps to reclaim their share of salvaged assets.
Amundi Tokenizes €5B Money Market Fund on Ethereum in European First
Amundi has tokenized its AMUNDI FUNDS CASH EUR fund, a €5B money market vehicle, on the Ethereum blockchain. The move marks a strategic pivot toward digital asset infrastructure while maintaining traditional distribution channels. CACEIS, a leading European transfer agent, will provide the technical backbone for tokenization, digital portfolio management, and 24/7 subscription-redemption services.
‘Tokenization is a transformation that will accelerate globally,’ said Jean-Jacques Barbéris of Amundi. The fund will accept stablecoins or future central bank digital currencies, reflecting growing institutional demand for blockchain-based liquidity solutions.
The initiative aligns with a surge in tokenized money market funds, now a $9B sector. The Bank for International Settlements recently flagged the trend as a systemic development in digital finance.
ETH Hovers Near Fair Value as Market Awaits Catalysts
Ethereum trades at $3,053.19, lingering in neutral territory after recovering from recent lows. The asset's realized price sits at $2,315 with a market-value-to-realized-value (MVRV) ratio of 1.27—indicating neither overbought nor oversold conditions. This equilibrium mirrors the ETH fear and greed index's neutral reading of 49 points.
Market activity shows ETH maintaining higher speculative interest than Bitcoin, yet without signs of euphoric rallying. The December 3 Fusaka upgrade looms as a potential catalyst, though current network activity hasn't translated into sustained price momentum. Liquidity constraints and latent selling pressure keep the market vulnerable to corrections.
Trading patterns suggest mid-cycle behavior rather than cycle extremes. The absence of altseason HYPE and tempered volatility point to continued sideways action—a holding pattern before the next decisive move.
