The market opens with a news funnel: migration of infrastructure projects, institutional disputes, and innovations in DeFi lending. Let's break down the key events of the morning of July 8.
Secret Network Leaves Cosmos for Arbitrum
The privacy-focused Layer 1 blockchain Secret Network has announced plans to migrate from the Cosmos ecosystem to Arbitrum, a Layer 2 solution for Ethereum. The reason is growing security risks associated with the development of AI. Developers note that the old code is becoming increasingly vulnerable: modern AI models can analyze and exploit vulnerabilities with unprecedented speed and low cost.
The trigger was a June attack on the Secret Network bridge, which resulted in a loss of $4.7 million. Although the native token SCRT was not affected, the team complains about an outflow of liquidity and developers moving to other ecosystems. A balance snapshot is scheduled for September 1, after which a new ERC-20 standard token will be issued on Arbitrum. The market reaction was immediate: SCRT dropped 24% in a day.
Strike Launches "Volatility-Protected" Bitcoin-Backed Loan
Financial services platform Strike has introduced a new credit product that, according to CEO Jack Mallers, completely eliminates margin calls and forced liquidations. The mechanism is simple: the maximum loan-to-value ratio is 45% (for example, with BTC collateral worth $100,000, you can borrow up to $45,000). The rate is up to 14.2% APR, which is 2.95 percentage points higher than Strike's standard product. The premium goes toward additional hedging.
The key difference: in case of late payment, the client has 10 days to resolve the issue, after which Strike may begin selling the collateral. This is why the product is called "volatility-protected" rather than "liquidation-proof." This is a direct response to criticism of Strike's first credit service, which triggered a wave of liquidations in May 2025.
Kraken Wins $22 Million from Former Auditor Mazars
Kraken's parent company, Payward, won a $22 million arbitration against former auditor Mazars USA. During the height of Operation "Choke Point 2.0" in 2022, the auditor abruptly abandoned a nearly completed audit of the exchange, causing reputational damage. Mazars confirmed in writing that they had no claims against Kraken's management, citing uncertainty due to the SEC lawsuit. Later, after the departure of SEC Chairman Gary Gensler, this lawsuit was dismissed, along with almost all other regulatory cases against crypto companies. Payward is now seeking a final ruling from the Delaware state court.
My expert commentary: The migration of Secret Network is a symptom of a deeper crisis in the Cosmos ecosystem, where the outflow of liquidity and developers is becoming systemic. Strike's product is an interesting experiment, but "volatility protection" is more of a marketing gimmick than a technological miracle. If BTC drops by 50%, the collateral will still be sold off, just through a more humane procedure. And Kraken's victory over Mazars is an important precedent: auditors will no longer be able to abandon crypto clients with impunity under regulatory pressure.