Odaily Report: The attacker, through a public keeper multicall, introduced a custom Uni V4 LP Safe module into a hook-enabled liquidity pool they created, after which the hook unwrapped aEthrsETH into rsETH, and Yoink MEV extracted it within the block. Two transactions have been confirmed to have caused approximately $7.73 million in rsETH losses.

Odaily reports that Wang Chun posted on X platform stating that Oleksii Trofimchuk filed a lawsuit against Lido Finance and Stakefish on September 8 in the Santa Clara County Superior Court, alleging that after his wallet was compromised, competitive MEV bots claimed ETH by submitting high-priority-fee transactions.Wang Chun stated that as a validator, Stakefish merely packages legitimate transactions according to Ethereum protocol rules, and cannot and should not adjudicate off-chain ownership or competing asset claims. He warned that requiring protocol-compliant validators to claw back rewards based on off-chain claims would force validators to filter transactions based on ownership claims they cannot independently verify, exposing staking rewards to legal uncertainty and undermining Ethereum's decentralization and credible neutrality.

Odaily News: 1inch has announced its integration with HyperEVM, the EVM network under Hyperliquid, now available across 1inch DApp, 1inch Wallet, Aqua, and all APIs. Users can perform gas-free token swaps with built-in MEV protection on HyperEVM through intent-based trading, and swap directly from other public chains to HyperEVM assets via 1inch cross-chain swap, eliminating the need for traditional cross-chain bridges.

Odaily Planet Daily News: Arbitrum Co-founder Steven Goldfeder stated that the industry should not fall into the "narrative trap" of simply comparing on-chain transaction prices. He noted that both Arbitrum One and Robinhood Chain actively guard against harmful MEV such as front-running, and that some chains marketing low fees actually impose higher MEV costs, with retail users potentially bearing additional losses through "hidden costs" like front-running and sandwich attacks.Solana Co-founder Toly responded that Arbitrum currently has wider bid-ask spreads and higher fees, and that even the cost equivalent to a 10% revenue share on fees alone already exceeds sandwich trading rates — with worse spreads factored in, he estimates total costs are roughly 10 times higher. Toly further argued that a model driven by a single sequencer pursuing shareholder profit maximization can never defeat permissionless market competition.

Odaily News: The sandwich attack bot operated by JaredfromSubway.eth has extracted a cumulative total of 117,007 ETH since March 2023, worth approximately $295 million at current prices. In June 2026, an anonymous attacker deployed 66 counterfeit token contracts, exploiting the bot's automated trading logic to steal at least $7.5 million in ETH and stablecoins, and funneled the funds into Tornado Cash. The stolen assets have not yet been recovered.Sandwich attacks are a form of Maximal Extractable Value (MEV): the bot monitors large transactions in Ethereum's public mempool, buys ahead of the target transaction, and sells after the transaction pushes the price up, capturing profits from the spread. The bot's primary contract had received a cumulative total of 117,007 ETH as of August 28.MEV-Boost block construction is centralized among a small group of participants, with relay.ultrasound.money, Titan Relay, and bloXroute regulated relays collectively forwarding approximately 85% to 88% of related blocks within a 24-hour window; Titan's builder independently assembled 50.3% of the blocks. Monthly sandwich attack extraction amounts have declined from approximately $10 million in late 2024 to roughly $2.5 million in October 2025. (Bitcoin.com News)

Odaily News - Hyperliquid Policy Center announced that it has recently submitted a joint comment letter with Douro Labs to the U.S. Securities and Exchange Commission (SEC), supporting the SEC's proposal to rescind Rule 611 of Regulation NMS (the "Trade-Through Rule") and calling on regulators to establish a clearer Best Execution regulatory framework for on-chain markets.The Hyperliquid Policy Center believes that the current Trade-Through Rule is built on traditional securities market structures and is clearly incompatible with blockchain-native trading models. HPC and Douro Labs put forward three recommendations in their joint comment letter:First, they support the SEC in rescinding the Trade-Through Rule. The two companies argue that this rule relies on a traditional quote system that cannot accurately reflect the on-chain trading environment, and its continued application could hinder the development of on-chain financial markets.Second, the SEC should establish clear best execution guidance for on-chain trading. On-chain markets feature new factors that do not exist in traditional markets, such as quote-less trading, 24/7 operation, blockchain network fees, and MEV (Maximal Extractable Value). Brokers need clearer regulatory standards to ensure they can execute trades on behalf of clients.Third, the regulatory framework should be principles-based and recognize independent price reference mechanisms. HPC and Douro Labs suggest that when the traditional NBBO cannot cover on-chain markets, the SEC should recognize independent price reference data formed through transparent, manipulation-resistant mechanisms. For example, the Pyth Network, which Douro Labs helped build, provides price oracle services for on-chain markets by aggregating real-time data supplied by exchanges and market participants.

Odaily Planet Daily News Grayscale Research Director Zach Pandl posted on X platform, comparing Ethereum to a "small country" and discussing the ETH issuance mechanism. He believes Ethereum has only one core "government function": protecting property rights and value exchange within the system. Unlike traditional countries that fund public services through taxation, Ethereum primarily relies on "seigniorage"—issuing new ETH to fund network security.Within this framework, the stakers responsible for maintaining network security act as a group providing public services, rewarded through newly issued ETH. Therefore, Ethereum's staking mechanism and ETH issuance policy essentially constitute both the network's fiscal policy and monetary policy simultaneously.Zach Pandl pointed out that the Ethereum community needs to decide how much "new money creation" should be used to cover network security costs. Greater security assurance typically means stronger property rights protection, but the trade-off is higher ETH issuance and potentially other risks.For example, if network security becomes increasingly dependent on a few large staking service providers, whether these providers can maintain all users' asset rights in a fully neutral manner remains open to discussion.Pandl believes that in traditional economies, no one knows the "optimal level" of government spending and money issuance—and the same applies to Ethereum. However, Ethereum has several critical security thresholds, including: 1/3: if attackers reach this proportion, they could impact finality; 1/2: influence over blockchain fork choice; 2/3: control over the finality process.Some community members argue that Ethereum's monetary and fiscal policy design should account for the security trade-offs posed by these critical ratios, and the current mechanism has not fully incorporated these factors. That said, the analogy is not entirely accurate, as it does not yet cover other important elements such as ETH burning mechanisms, MEV, and governance.

Odaily News: According to data from crypto investment firm 1kx, total revenue in the global crypto industry for H1 2026 fell to $47 billion, down 23% year-over-year, a decrease of approximately $14 billion compared to the same period last year. The firm stated that the revenue decline is consistent with bear market cycle characteristics, as traditional crypto revenue streams such as exchanges, brokerage services, wallets, staking, and mining remain highly dependent on asset prices and trading volumes.1kx pointed out that this round of revenue decline primarily stems from two major areas. On one hand, finance-related revenue saw a noticeable decline. Revenue from centralized exchanges (CEX), derivatives platforms, and market makers decreased by $5.2 billion year-over-year; on-chain DeFi revenue dropped by $1.8 billion, down 32% YoY; and ETF and fund management fee revenue fell by $1.1 billion. On the other hand, blockchain infrastructure revenue continued to weaken. Staking and mining reward revenue decreased by $6.2 billion, while on-chain transaction fees and MEV revenue nearly halved. Currently, blockchain infrastructure revenue accounts for just 25% of total crypto industry revenue, hitting an all-time low.However, not all sectors have been affected by the cycle. Low-cyclicality businesses such as stablecoins, real-world asset (RWA) issuance, prediction markets, and decentralized physical infrastructure networks (DePIN) grew 14% against the trend in H1, reaching $12 billion in revenue and rising to 26% of total industry revenue. Among them: stablecoin and RWA issuer revenue increased by $700 million; stablecoin payment cards and payment businesses grew by approximately $100 million; prediction market fee revenue surged about 10-fold, adding roughly $300 million; DePIN fee revenue nearly doubled; and on-chain middleware revenue grew about 70%, primarily driven by Chainlink.1kx stated that although DeFi and financial business revenue declined in absolute terms, they still hold the largest share of the industry, rising to 64%. Consumer on-chain application revenue performed relatively more steadily, declining approximately 20% year-over-year. For comparison, at the lowest point of the previous crypto bear market cycle (H2 2022), industry semi-annual revenue was approximately $28 billion, while the current bear market period has maintained $47 billion in revenue during the same timeframe, with roughly a quarter coming from emerging businesses that continued to grow during the bear market.1kx noted that its revenue accounting methodology includes trackable on-chain transaction fee revenue, staking yields and other income, as well as off-chain revenue publicly disclosed by Coinbase or estimated for platforms such as Binance. The composition of these three revenue categories has remained largely stable compared to last year.

Odaily News According to on-chain analyst Ai Yi's monitoring, the hacker who attacked the MEV bot Jaredfromsubway.eth and caused it to lose over $7.5 million spent the final 2.44 million DAI to purchase 1,277 ETH 10 hours ago. This amount represented the hacker's last pending funds on-chain, and the next step may involve mixing the funds through Tornado Cash.

Odaily News: MetaMask on Thursday launched the self-custodial wallet Agent Wallet, which allows AI agents to execute on-chain transactions within user-defined limits. It targets traders and developers who use AI agents to monitor markets, identify opportunities, and execute trades autonomously. Users can set spending limits, approve specific protocols, choose risk settings, and select between Guard Mode and Beast Mode for different levels of automation. Agent Wallet supports Claude Code, Codex, Cursor, OpenClaw, Hermes, OpenCode, as well as Hyperliquid and Ethereum Virtual Machine-compatible networks. Agent Wallet supports gas abstraction, allowing users to pay network fees using the asset being transferred, without needing to hold the network's native token. MetaMask stated that supported transactions will undergo transaction simulation, threat scanning, and smart transaction MEV protection. Eligible transactions that still incur losses after passing security checks may be covered by Transaction Protection of up to $10,000 per month.