Contango

Contango has officially begun the audit process for its v3 contracts with OpenZeppelin, marking a significant milestone in the platform's development. **Key Updates:** - v3 contracts now under formal audit with OpenZeppelin - Initial yAudit review completed, with fixes implemented - Contract size optimizations led to splitting some contracts to stay within Ethereum limits - Final yAudit review underway to verify recent changes **What's Next:** - UX beta MVP sneak peeks for user testing - Full v3 launch following security audits The team emphasizes their security-first approach, prioritizing thorough auditing over speed despite being in the final stretch before migration.

**New Trading Options Available** Two new long-dated Principal Tokens (PT) from Cap Money are now accessible for loopers: - PT-stcUSD-23JUL2026 - PT-cUSD-23JUL2026 **Important Considerations** Liquidity for these tokens is currently building up. Traders should exercise caution when entering positions due to developing market depth. **Recent Context** This follows the recent launch of two Ethena PT loops paired against different quotes (PT-sUSDe-7MAY2026 and PT-USDe-7MAY2026), which benefit from deep liquidity provided by Aave.

**Nexus** emerges as the **leading insurance protocol** in DeFi, operating on mainnet while providing comprehensive coverage across all chains where Contango is deployed. **Open Cover** functions as Nexus's **L2 alternative**, working in tandem to expand insurance accessibility and reduce costs. Key benefits: - Cross-chain coverage for Contango deployments - Mainnet security with L2 efficiency - Comprehensive DeFi protection Both protocols offer essential risk management tools for traders and liquidity providers in the evolving DeFi landscape.

**New Trading Opportunities Available** Ethena Labs has released new maturities for both USDe and sUSDe tokens, expanding options for traders and investors. **Deep Liquidity Benefits** - Aave's robust liquidity allows users to post **$1M margin** seamlessly - Zero slippage when closing positions if using same base and quote assets - Enhanced capital efficiency for large trades **Previous Context** This follows Ethena's successful Liquid Leverage launch, which attracted over **$1.5B in inflows** within its first week. Aave subsequently increased capacity limits: - ~$350M capacity for sUSDe - ~$300M capacity for USDe The expanded infrastructure enables more users to access leveraged exposure to sUSDe rates while maintaining better liquidity profiles through USDe holdings with no cooldown periods. *Ready to explore these new maturities and enhanced liquidity options?*

**Contango announces TANGO token buybacks** following the recent Balancer exploit response. **Key Details:** - Buybacks will use **100% of protocol fees** collected since the exploit - **100% of future protocol fees** will fund buybacks until v3 launch - Maintaining current **80/20 Balancer pool** as primary liquidity - Purchased tokens will be held in Treasury **Why This Matters:** - 80/20 pool offers **lower impermanent loss** for liquidity providers - Configuration **amplifies market impact** of buybacks - Supports healthier token environment during v3 transition **Timeline:** Buybacks executed via TWAP orders over coming weeks. Team will review pool performance after initial phase to determine next steps for protocol-owned liquidity. Contango remains fully operational with v3 development as top priority.

A trader with $31M in open interest on Contango achieved remarkable success through extreme patience and simplicity. **The Strategy:** - Made only **2 trades** in over 12 months - Opened long positions on wstETH/ETH: - 2800 wstETH on Spark - 3813 wstETH on Morpho - Total exposure: 6613 wstETH **The Results:** - Currently **in profit** on both positions - Earned almost **$13k in extra rewards** from underlying markets - Hasn't claimed a single reward yet - Used multisig wallet with no MEV attacks **Key Insights:** - Demonstrates power of **"loop and wait"** strategy - Leveraged liquid staking tokens for yield - Avoided complex trading and market timing - Shows discipline in long-term position management This whale's approach contrasts sharply with active traders, proving that sometimes the best strategy is simply opening quality positions and letting time work in your favor. *Trading on leverage carries significant risk - not financial advice.*

$TANGO rewards were distributed to Contango traders on Tuesday, with **Safe multisig users receiving a 3x multiplier bonus**. **Key Details:** - Standard reward distribution for all active traders - **3x boost** specifically for @safe wallet users - Part of ongoing SafeBoost campaign incentives This distribution follows Contango's regular reward system based on trading activity and points accumulation. The Safe multisig bonus continues to provide significant advantages for users prioritizing security. *Trading on leverage carries significant risk - not financial advice.*

**PT-cUSDO from Clearstar Labs** is now live on Morpho Labs, expanding access to this yield-bearing stablecoin derivative. **What is USDO?** - OpenEden's "OpenDollar" - a rebasing yield-bearing stablecoin - Generates yield from T-Bills and reverse repo operations - cUSDO is the wrapped, non-rebasing version **Key Details:** - Previously launched in July with three trading pairs (RLUSD, USDC, USDT) - Powered by Euler Finance - Now available on Morpho Labs platform **Important Warnings:** - Trading on leverage carries significant risk - Users should research thoroughly at [openeden.com](https://openeden.com/) - Contango operates on variable rate markets - understand the mechanics before trading - Read documentation at [docs.contango.xyz](https://docs.contango.xyz/) *This expansion provides more options for traders interested in RWA-backed stablecoins, but requires careful consideration of risks.*

Circle's euro-backed stablecoin EURC has been added as a quote currency for five trading pairs on Aave's Base deployment: - ETH/EURC - weETH/EURC - wstETH/EURC - cbETH/EURC - cbBTC/EURC EURC maintains a 1:1 euro peg and is available across 38 blockchains via API3 Market. **Important**: Trading involves leverage risk. Users should review [Contango documentation](https://docs.contango.xyz/) before engaging with variable rate markets.

**Critical Deadline**: January 31st, 2025 is the final day to claim oTANGO tokens. After this date, all unclaimed tokens will automatically be transferred to the Contango treasury. Currently, 16.9% of tokens remain unclaimed. Token holders can claim through https://app.contango.xyz/otango/claim *Important Notes*: - Claiming is separate from exercising oTANGO - oTANGO remains exercisable after the claim deadline - Always verify links to avoid scams *Risk Warning*: Contango operates on variable rate markets. Users should understand the mechanics before trading or staking.