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BlackRock has moved closer to launching a yield-generating Ethereum ETF in the U.S. after filing an amended S-1 registration. An affiliated entity seeded the trust with $100,000 by purchasing 4,000 initial shares.
The planned iShares Staked Ethereum Trust ETF (ticker: ETHB) intends to stake most of its ETH holdings — typically 70–95% — to generate on-chain rewards. Based on early-2026 reference benchmarks, estimated annual staking yield is around 3%, though BlackRock notes returns are not guaranteed and tend to decline as validator participation increases.
Unlike BlackRock’s existing spot Ethereum ETF, which only tracks price, this new fund is designed to produce yield through staking. The sponsor fee is set at 0.25% annually, with a discounted 0.12% rate for the first $2.5 billion in assets during the first year.
About 18% of gross staking rewards will be shared between the sponsor and execution agent Coinbase Prime, while the remaining net rewards go to the trust. Roughly 5–30% of ETH will stay unstaked to support liquidity, creations, and redemptions.
StarkWare is integrating Nightfall — a zero-knowledge privacy solution developed by Ernst & Young — into the Starknet Layer 2 network to enable confidential institutional transactions on public blockchain infrastructure.
The integration addresses a key barrier to enterprise adoption: public blockchain transparency that exposes balances, counterparties, and strategies. Nightfall allows private-by-default transactions with selective disclosure, so institutions can execute B2B payments, treasury operations, tokenized asset transfers, and DeFi activities while still meeting compliance and audit requirements.
Built with zero-knowledge rollups and compatible with Ethereum, Nightfall links blockchain addresses to enterprise certificates to support regulatory controls alongside transaction privacy. StarkWare says this will support use cases such as private cross-border payments and confidential treasury management.
CEO Eli Ben-Sasson called the move a milestone for institutional blockchain adoption, while EY’s blockchain lead Paul Brody described privacy as the missing component for large-scale onchain enterprise payments.
Dragonfly closes $650M fourth crypto venture fund amid bear market
Dragonfly Capital has closed its fourth crypto-focused venture fund at $650 million, exceeding its original $500 million target by about 30% despite ongoing bear market conditions. The new Dragonfly Fund IV matches the size of the firm’s 2022 vintage fund.
Managing partner Haseeb Qureshi said the raise comes during a period of weak sentiment and elevated fear in crypto markets, but noted the firm’s prior funds were also launched during downturns and later produced strong vintages.
Recent deployments include leading a $75 million Series C round for payments network Mesh in January, alongside Paradigm, Coinbase Ventures and PayPal Ventures. The firm also co-led a $36 million Series A for cross-border payments startup Conduit in 2025, and previously backed MyShell and Fantasy.top.
The new fund follows the resolution of a potential U.S. regulatory issue tied to Dragonfly’s 2020 investment in PepperSec, developer of Tornado Cash. U.S. authorities later stated the firm and its principals were not investigation targets, while Tornado Cash co-founder Roman Storm was convicted in 2025.
LI.FI launches LiFI Composer for one-click multi-step DeFi transactions
LI.FI has launched LiFI Composer, a new transaction orchestration tool that lets users bundle multiple DeFi actions — including swaps, bridging, deposits, and staking — into a single on-chain transaction with a unified execution overview.
The company said the tool simulates each step in complex, multi-stage flows to improve predictability and reduce failed transactions, aiming to simplify cross-chain and self-custodial DeFi usage. LiFI Composer is also part of the firm’s broader push this year to expand product offerings for its 800+ partners and streamline user workflows.
Backed by CoinFund and Multicoin Capital, the startup was founded in 2021. Last December, it added a $29 million Series A extension led by Multicoin, bringing total capital raised to $51.7 million.
LI.FI reported strong growth, with monthly volume rising 595% year over year to about $8 billion in October 2025, up from $1.15 billion in October 2024.