Uniswap Can Now Route Trades Through Liquidity on Curve, Fluid and PancakeSwap

In Today's Note

• The 10-year US Treasury yield fell around 17bps to 4.96%, its biggest one-day decline since March 2023, while the Philadelphia Semiconductor index dropped 6.72% after disappointing earnings from Meta, Tesla and Lam Research.
• SoFi launched SoFi Earn (SOFIE), a tokenised bank deposit that pays 4.4% APY, is FDIC-insured within applicable limits and can be converted 1:1 into the SoFiUSD stablecoin.

Market Snapshot: Overnight Moves

Macro & Markets

• The selloff in AI-related shares returned in force on Thursday after disappointing earnings from Meta, Tesla and Lam Research. The Philadelphia Semiconductor sector index plunged 6.72%, with all 30 members ending lower, its biggest one-day drop since June 23.
• The Nasdaq-100 fell 2.90% and the S&P 500 1.21%, its worst day since July, while the Dow (+0.02%) and the equal-weight S&P 500 (+0.73%) held up as investors rotated into consumer staples (+3.3%).
• Meta led the declines among megacaps, falling close to 7% after reporting negative free cash flow of $2.12B as AI capex climbed. Lam Research sank 11.8%, AMD 8.1% and Nvidia 4.4%, while CoreWeave fell another 10.1%.
• The selloff has stabilised this morning, with S&P 500 futures trading 0.14% lower and Nasdaq-100 futures little changed.

• The yield on the 10-year US Treasury fell around 17bps to 4.96%, its biggest one-day decline since March 2023, dropping back below 5% for the first time in a month. The 2-year yield fell around 16bps to 4.65%.
• Unlike last week, the bond rally came despite another leg higher in oil. Brent crude jumped 4.0% to settle at $113.17, its highest close since May, after Iran's Revolutionary Guard claimed seven tankers had been hit near the Strait of Hormuz and Houthi forces struck further Saudi energy targets. It is trading at $114.73 this morning.
• President Trump accused Iran of manipulating oil prices ahead of the midterms, writing on Truth Social that "Iran is doing everything they can to drive up the price of Oil prior to the U.S. Midterm Election… They are even making up fake hits, mines, and everything else, because more Oil is coming through the Hormuz Strait now."

• Precious metals failed to benefit from the risk-off move, with gold falling to around $4,027 this morning and silver dropping close to 5% on Thursday to $54.58.
• With Fed policymakers still in their blackout period, CME FedWatch probabilities of a hike at next week's meeting have fallen to 7.2%, from 27.7% a week ago. Initial jobless claims fell to a three-month low of 194K, below the 200K expected.

• Crypto followed equities lower, with BTC falling to an hourly low of $81.1K at 18:00 UTC on Thursday, though it held above the $80K floor of its recent range. It is trading at $81.7K this morning, 3.7% below Wednesday's peak of $84.8K, after around $406M of mostly long positions were liquidated over the past 24 hours.
• Institutional demand reversed sharply. US spot Bitcoin ETFs recorded $635.5M of outflows on Thursday, their largest single-day outflow since June 25, ending a three-day inflow streak of $1.08B. IBIT (-$254.1M) and FBTC (-$217.5M) led the redemptions.
• Spot Ether ETFs also saw outflows of $110.5M, led by ETHA (-$75.5M), reversing Wednesday's brief $15.0M inflow. ETH is trading flat on the day at $2,403.

• Despite the ETF outflows and tech rout, BTC's options market has shown little increase in demand for downside protection. 7-day at-the-money vol is unchanged at 32.3%, while the 30-day 25-delta put premium has narrowed from 3.3 to 2.1 vol points over the past 24 hours, its lowest level since Oct. 13.
• ETH's options market is pricing greater downside risk. Its 7-day 25-delta put premium has widened from 1.2 to 4.1 vol points over the same period, its highest level since Oct. 19, while 7-day ATM vol has risen to 46.1%, almost 14 vol points above BTC's.

DeFi / Web3 / Altcoins / Crypto

• The Blockchain Association is urging Congress to pass clearer federal tax rules for digital assets as broader crypto market-structure legislation remains stalled in the Senate.
• The industry group, which represents more than 100 firms, said existing crypto tax rules are often unclear and difficult for taxpayers and businesses to apply.
• Its letter was sent to congressional leaders including Senate Majority Leader John Thune, Senate Minority Leader Chuck Schumer, House Speaker Mike Johnson and House Minority Leader Hakeem Jeffries.
• The group is calling for measures including a de minimis exemption for small crypto transactions, stronger taxpayer privacy protections and the extension of wash-sale rules to digital assets.
• In the House, the Digital Asset Tax Certainty Act has already advanced out of the Ways and Means Committee.
• That bill would create clearer federal tax treatment for crypto, including an exemption for network fees of $10 or less.
• Further House action is not expected until after the November elections.
• The push comes as the broader Clarity Act remains stalled in the Senate after failing to advance in a procedural vote in September.
• The Blockchain Association argues that a broader digital asset regulatory framework will remain incomplete without clear and administrable tax rules.

• TRON Academy held a virtual blockchain workshop with the Cambridge Blockchain Society and Oxford Blockchain Society, with an in-person session at Queens’ College, Cambridge.
• The session focused on stablecoins and their use in payments, remittances, merchant settlement and treasury flows.
• TRON DAO Community Spokesperson Sam Elfarra discussed USDT on TRON as a payment and settlement rail for cross-border transactions.
• The workshop also covered the Justin Sun Prize, an academic initiative focused on mathematics, formal verification and AI-assisted scientific research.
• The prize is based on a public list of mathematical problems and requires machine-verifiable formal proofs, with awards of up to $1M per problem.
• According to the announcement, the initiative has already recognized independent and university-based researchers for work on several Erdős problems.
• The event was part of TRON Academy, which works with university blockchain groups by providing funding, educational resources and industry exposure.

• Uniswap has launched aggregator hooks on Ethereum, Base and Robinhood Chain, allowing Uniswap v4 to route trades through liquidity held on external platforms.
• Fluid, Curve and PancakeSwap are among the outside liquidity sources available at launch.
• Aggregator hooks make external liquidity sources appear to Uniswap’s router like native v4 pools, so the protocol can compare prices across its own pools and other venues.
• If an external source offers a better route, Uniswap can execute the trade through that liquidity in a single transaction.
• The feature is available through the Uniswap web app and API, with additional blockchain support planned.
• Trades routed through external liquidity sources will still pay Uniswap protocol fees.
• Those fees will contribute to UNI token burns under the protocol’s fee mechanism.

• SoFi has launched SoFi Earn, or SOFIE, a tokenized bank deposit product available through SoFi Crypto.
• SOFIE pays 4.4% APY and is FDIC-insured within applicable limits while it remains a deposit at SoFi Bank.
• Each SOFIE represents $1 held on deposit.
• Customers can convert SOFIE 1:1 into SoFiUSD to buy crypto or transfer funds to supported external wallets.
• Interest accrues until the deposit is converted.
• SoFiUSD is not FDIC-insured, so deposit insurance ends once SOFIE is converted into the stablecoin.
• SoFi said nationally chartered U.S. banks have not previously offered tokenized deposits directly to retail customers.
• The rollout to SoFi Crypto members is expected to be completed in November.

This Week's Calendar

Charts of the Day

Figure 1. Block Scholes BTC Risk-Appetite Index (white, left-hand axis) and BTC spot price (orange, right-hand axis). Source: Deribit, Block Scholes.

Figure 2. Block Scholes ETH Risk-Appetite Index (white, left-hand axis) and ETH spot price (purple, right-hand axis). Source: Deribit, Block Scholes.

Figure 3. BTC at-the-money implied volatility across selected tenors. Source: Deribit, Block Scholes.

Figure 4. ETH at-the-money implied volatility across selected tenors. Source: Deribit, Block Scholes.

Figure 5. BTC 25-delta put-call skew ratio across selected tenors. Source: Deribit, Block Scholes.

Figure 6. ETH 25-delta put-call skew ratio across selected tenors. Source: Deribit, Block Scholes.

Block Scholes is an FCA-regulated institutional crypto derivatives analytics platform. Live data, IV surfaces, and backtesting available via blockscholes.com.

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