Claude Code starts letting AI audit AI: 90% of code is written by Claude, and no human approval is required for low-risk modifications.

Analysis firm Sentora reported that 89% of the roughly $1.63 billion in liquidations on Ethereum lending platforms over the past year were settled via atomic paths. Atomic liquidations depend on decentralized exchange (DEX) liquidity. Real World Asset (RWA) collateral, which features thin liquidity pools and whitelist transfer restrictions, will push more liquidations to shift to off-chain market makers, request for quote (RFQ), and solver paths. Atomic paths refer to liquidations that complete collateral liquidation and debt repayment within a single on-chain transaction, with common methods including flash loans, self-funded advances, or direct contract calls. By contrast, RWAs are often hard to offload immediately on DEXs, so liquidations will more frequently be handled by compliant off-chain market makers, who acquire the collateral via inquiry transactions and solvers before closing out positions.

Last week, US tech stocks saw a sharp pullback, with the Nasdaq down over 4% for the week. While digesting stronger-than-expected inflation data, markets are re-examining the "unbreakable economy" narrative. The Federal Reserve has entered the pre-FOMC meeting blackout period ahead of the Oct 28 policy meeting, with no official remarks. This week’s asset pricing will hinge more on tech giants’ earnings and economic data: Meta and Tesla will release results, while the semiconductor and storage sectors also enter their earnings disclosure window. Friday’s preliminary PMI readings for the US and Europe, plus the final Michigan consumer confidence index, will test the interest rate hike path. Geopolitically, Trump has suspended full-scale sanctions and tariffs on Russia, setting a roughly 60-day review period. Disruptions to shipping in the Strait of Hormuz and rising Middle East tensions continue to support oil price premiums. Key events this week: Tuesday: NVIDIA GTC Berlin kicks off (runs through Oct 22) Wednesday: US API and EIA crude oil inventories for the week ended Oct 16; NVIDIA CEO Jensen Huang delivers a keynote at GTC Berlin in the evening (Beijing time); US stocks enter a heavy earnings day, with Meta, Tesla, IBM, and Lam Research reporting results after market close Thursday: US initial jobless claims for the week ended Oct 17; Nokia reports earnings before the US market opens, while Western Digital and MaxLinear report after close Friday: Preliminary S&P Global US manufacturing and services PMI for October; final University of Michigan consumer confidence index and 1-year inflation expectations for October; September CPI and preliminary composite/manufacturing/services PMI for Japan, as markets gauge price trends ahead of the Bank of Japan’s Oct 30 policy meeting

HIP-3 market deployer Paragon announced that Papertrade (PAPER) perpetual contracts have launched on the Hyperliquid HIP-3 market, with a maximum leverage of 3x. PAPER is currently trading at $0.012.

Paragon, the deployer of the HIP-3 market, announced that Papertrade (PAPER) perpetual contracts have launched on the Hyperliquid HIP-3 market, with a maximum leverage of 3x.

Cysic Foundation announced that a security incident occurred on its cross-chain bridge on October 17, during which an attacker minted 10 million CYS tokens on BNB Smart Chain without authorization. After detecting anomalies, the project team has suspended the cross-chain bridge, placed relevant addresses on an on-chain blacklist, and hired a professional security firm to investigate the attack path and fund flows. Preliminary investigations indicate the attacker gained unauthorized access to the database supporting the cross-chain bridge service and exploited a vulnerability in the processing logic to submit fake minting requests. The incident only impacted the cross-chain bridge's message processing and minting functions; Cysic's mainnet and other operational systems remain unaffected, and no user assets have been stolen. As of press time, the relevant addresses still hold approximately 2.8 million CYS, which have been restricted from transfer. The project team noted that the 10 million CYS minted does not equate to final dollar losses; actual losses and follow-up fund tracking results are still under verification, and the cross-chain bridge will be reopened only after security reviews are completed. Per HTX market data, Cysic (CYS) is trading at $0.118, down 6.2% in 24 hours, with a market cap of $19 million.

Crypto analyst Darkfost stated in a post that since the end of August, mid-cap and small-cap tokens have posted the strongest market capitalization growth. Data shows the gap between the annual average and monthly average market cap of these assets has continued to widen, with the current ratio reaching 41%. By contrast, Bitcoin’s growth trend is positive but limited, standing at only 7%, while large-cap assets have an even lower ratio of 3.5%. The analyst pointed out this is a quite rare phenomenon. Normally, Bitcoin drives market trends, as was clearly seen in the period after the end of the 2023 bear market. However, mid-cap and small-cap tokens are more sensitive to market funds and sentiment, and their trends may reverse rapidly in either direction in the short term. Investors need to be alert to the high volatility risks brought by this structural feature.