Hey there, PoI readers! 👋

It's your favorite quirky newsletter writer, Mochi, back with another jam-packed edition of Proof of Intel. Buckle up, because we're diving headfirst into the wild and wacky world of crypto, where pension funds are flirting with bitcoin, Genesis is coughing up millions to the SEC, and Goldman Sachs is eyeing public blockchains like a kid in a candy store.

But wait, there's more! We've also got the scoop on Aave's latest airdrop extravaganza, where they're rewarding their friends and penalizing their foes. It's like a high-stakes game of DeFi dodgeball, and we've got front-row seats!

So, grab your popcorn, put on your thinking caps, and get ready for a wild ride through the latest and greatest in the crypto space. Let's dive in!

INTEL BRIEF
━━━━━━━━━━━━━━━━━━━━━

🟧 Japan's government pension fund is exploring the possibility of investing in bitcoin and other illiquid assets.

🟧 Genesis Global Capital agrees to pay $21 million to settle SEC charges related to the defunct Gemini Earn program.

🟧 Goldman Sachs' head of digital assets, Mathew McDermott, discusses the bank's involvement in the crypto space and the potential for expanding services on public blockchains.

🟧 Aave launches Merit, an alignment reward program that airdrops tokens to users who benefit the Aave DAO, while penalizing those using "non-aligned" protocols like Morpho Aave Optimizers.

Japan's Pension Fund Joins the Bitcoin Bandwagon?

The Government Pension Investment Fund (GPIF) of Japan, the world's largest pension fund, is dipping its toes into the wild world of bitcoin and other illiquid assets. That's right, the big shots at GPIF are on the hunt for some juicy new investments to add to their already impressive portfolio.

Now, before you start imagining grandma and grandpa rolling up to the grocery store in a shiny new Lambo, let's be clear: GPIF is just doing some research for now. They're looking for "basic information" on assets like forests, farmland, gold, and of course, everyone's favorite digital currency, bitcoin. It's like they're window shopping for potential investments, but instead of trying on clothes, they're trying on different asset classes.

The timing of this announcement is pretty interesting, considering bitcoin just hit an all-time high recently and has been on a tear over the past year, rallying more than 130%. It's almost like GPIF saw bitcoin's impressive gains and thought, "Hey, maybe we should get in on this action!"

But don't get too excited just yet. Pension funds are known for being cautious when it comes to cryptocurrency investments, given their volatile nature. It's like watching your grandparents navigate a TikTok dance challenge – they might give it a go, but they're not about to go viral anytime soon.

Still, some pension funds have already taken the plunge. South Korea's National Pension Service bought shares of Coinbase last year, proving that even the most traditional investors can't resist the allure of the crypto world.

And who knows? With Japan's government proposing a law that would allow investment funds to hold digital assets, we might just see more pension funds joining the bitcoin party in the future.

TL;DR: Japan's government pension fund is considering investing in bitcoin and other illiquid assets, following bitcoin's recent all-time high. While pension funds are typically cautious about crypto investments, some have already taken the plunge, and Japan's proposed law could pave the way for more to join the fun.

Genesis Coughs Up $21M to Settle SEC Charges

Well, well, well, looks like Genesis Global Capital is finally facing the music! The bankrupt crypto lender has agreed to pay a whopping $21 million to settle charges with the U.S. Securities and Exchange Commission (SEC) for their role in the now-defunct Gemini Earn program. Talk about an expensive lesson learned!

The settlement comes hot on the heels of a New York judge denying motions by Genesis and crypto exchange Gemini to stop the SEC case filed back in January 2023. It's like trying to put out a fire with a water gun – it just doesn't work!

Genesis and two of its affiliates had already filed for bankruptcy shortly after the SEC charges, but it seems they've finally decided to bite the bullet and pay up. In February 2024, Genesis said in court documents that they'd agreed to settle the charges for $21 million, and now it looks like the deal is sealed.

But here's the kicker: the SEC won't be seeing a dime of that penalty until after all other allowed claims are paid by the bankruptcy court. It's like getting an IOU from a friend who owes you money – you'll get it eventually, but don't hold your breath!

SEC Chair Gary Gensler had this to say about the settlement: "Today's settlement builds on previous actions to make clear to the marketplace and the investing public that crypto lending platforms and other intermediaries need to comply with our time-tested securities laws." In other words, play by the rules, or be prepared to pay the price!

TL;DR: Genesis Global Capital settles SEC charges for $21 million related to the defunct Gemini Earn program, but the SEC won't receive the penalty until after all other allowed claims are paid in bankruptcy court.

Goldman Sachs Bullish on Public Blockchains, But Wants to See Them "Mature" First

Goldman Sachs is no stranger to the world of digital assets, and it seems they're not planning on slowing down anytime soon! Mathew McDermott, the global head of digital assets at Goldman Sachs, recently spoke at the Blockworks Digital Asset Summit in London, where he shared some juicy insights into the bank's crypto adventures.

According to McDermott, Goldman Sachs launched their digital assets desk back in 2021, and they're pretty proud of being the only bank that offers liquidity in cash-settled derivatives, options, and futures crypto trading. Talk about being ahead of the curve!

Despite the tough times in the crypto world last year (we're looking at you, FTX), McDermott said that this year has brought a big change in terms of the types of clients and volumes they're seeing. It's like the crypto party is back on, and Goldman Sachs is ready to dance!

But wait, there's more! Goldman Sachs CEO David Solomon even penned an opinion piece for the Wall Street Journal, arguing that experienced institutions like theirs should be leading the way in crypto innovation. He threw a little shade at some blockchain startups, saying they might not have the capability to meet regulatory requirements because they're too young. Ouch!

McDermott seems pretty optimistic about the regulatory landscape globally, saying it's given a lot of clarity and confidence for traditional players to invest in the space. It's like the regulators are finally giving the green light for the big boys to play in the crypto sandbox!

When asked about expanding their on-chain services via public blockchains, McDermott admitted there are some compliance hurdles to overcome. But he's personally seeing a huge opportunity there and hopes the team can move in that direction once the space "matures" a bit more.

TL;DR: Goldman Sachs is all-in on digital assets, with Mathew McDermott discussing the bank's crypto desk and the potential for expanding services on public blockchains once they "mature." CEO David Solomon believes experienced institutions should lead the way in crypto innovation.

Aave's Airdrop Extravaganza: Rewarding Friends, Penalizing Foes

Attention all DeFi enthusiasts! Aave, the popular lending protocol, is at it again with another round of airdrops. But this time, they're not just rewarding their own users; they're also taking aim at their competitors!

Introducing Merit, Aave's latest alignment reward program that's dishing out a whopping $5 million over a 90-day period. That's right, folks – if you're borrowing wETH or GHO, or even staking GHO, you could be in for a sweet surprise!

But here's the catch: Merit is designed to reward actions that benefit the Aave DAO. It's like a loyalty program on steroids, using a booster-based reward system that enables users to earn points over time. The more you help Aave, the more you earn!

Now, before you start scheming ways to game the system, keep in mind that the calculations are kept under wraps. But generally speaking, things like depositing liquid staked tokens, borrowing wETH and GHO, or holding stGHO will earn you some serious brownie points.

On the flip side, if you're caught using "non-aligned" protocols, you might find yourself in the penalty box. And trust us, you don't want to be there – we're talking "severe dilution" of up to -100%! Currently, the only protocol on Aave's naughty list is Morpho Aave Optimizers v2 and v3.

Marc Zeller, the founder of ACI, didn't mince words when explaining why Morpho made the cut, calling them a "leech" that provides "zero benefits" and "steals potential revenue." Ouch!

But Paul Frambot, the co-founder and CEO of Morpho Labs, clapped back, saying Zeller's claims were "not true" and citing liquidity and revenue to the Aave DAO as benefits of Morpho's integration. Sounds like there's some drama brewing in the DeFi world!

Despite the controversy, Aave remains one of the most popular lending protocols in the space, with a hefty $10.29 billion in total volume locked (TVL). Morpho, on the other hand, launched just last year and has a TVL of $1.78 billion.

TL;DR: Aave launches Merit, an alignment reward program that airdrops tokens to users who benefit the Aave DAO, while penalizing those using "non-aligned" protocols like Morpho Aave Optimizers. Drama ensues between Aave and Morpho founders, but Aave remains a DeFi powerhouse with over $10 billion in TVL.

Well, folks, that's a wrap for this edition of Proof of Intel! We've covered everything from pension funds dipping their toes into the bitcoin pool to Aave's airdrop drama. It's never a dull moment in the world of crypto, and we wouldn't have it any other way!

Remember, whether you're a big-shot pension fund, a bankrupt crypto lender, or just a humble DeFi enthusiast, there's always something new and exciting happening in this space. So, keep your eyes peeled, your ears to the ground, and your crypto wallets at the ready – you never know what opportunities might come knocking!

Until next time, PoI readers, keep on crypto-ing! And don't forget to join us for another round of witty banter, juicy insights, and all the latest and greatest in the world of digital assets. Mochi, signing off! 🍙✌️

P.S. Don't forget to share Proof of Intel with your friends. See you in the next issue! 💌🎈

🍨📰 Catch you in the next issue! 📰🍨