Bonzo Bytes Newsletter - #37 🐵🗞️

Bonzo Finance Incident on August 6th

On August 6th, it was observed that a position in Bonzo Finance utilizing $BONZO governance tokens as a primary form of collateral — used to borrow Hedera native $USDC — fell below a health factor (HF) of 1, due to observed standard market volatility. This caused a sharp decline of cascading liquidations, and a subsequent recovery.

No malicious behavior was observed. The protocol’s functionality and, in conjunction, its ecosystem (i.e., liquidation bots, oracles, etc.) appear to have operated exactly as intended. No exploits were observed or triggering of downtime (freezing/pausing) across markets.

While the event was notably disruptive, it is an acknowledgement that the protocol has achieved a level of liquidity and growth that warrants adjustments; these adjustments are in support of safely scaling the protocol, its users, and the broader Hedera DeFi ecosystem to its next attainable levels.

Bonzo Finance Labs is committed to keeping its community informed throughout these changes; as more information becomes available, details will follow via the Bonzo Finance blog, Discord, and X.

Read more: Bonzo Finance Incident Report for August 6th

Extended $BONZO Buyback Program

Bonzo Finance is extending the $BONZO Buyback Program by 30 days with an additional $4,500 USD allocated, bringing the total boost period target to $13,800.

The first bonus buyback was executed, and regular automated buybacks will continue for the next month. As Gaurang noted, this extends the initial boost period before transitioning into a sustainable, long-term practice, making it "more dynamic, more automated, and based on actual revenue and how the protocol is doing."

Hgraph's GraphQL AI Assistant Now Powered by GPT-5

Hgraph has upgraded its GraphQL AI Assistant to leverage GPT-5, making it easier for developers to query and build with Hedera data. Available for free in the ChatGPT store, the assistant can generate and refine GraphQL queries to streamline development on the network.

Kabila Wallet Adds Multiple Payment Options

Kabila Wallet now supports multiple payment methods, including Credit/Debit Card, Bank Transfer, Apple Pay, and Google Pay. This update makes purchasing $KBL and other supported assets easier for global users, powered by AhoraCrypto integration for seamless fiat-to-crypto onboarding.

President Trump Signs Pro-Crypto Executive Orders

President Trump signed two significant executive orders this week advancing crypto adoption:

Fair Banking for All Americans - Instructs regulators to remove "reputational risk" considerations from supervisory handbooks and bank oversight, addressing Operation Chokepoint 2.0 which pressured banks into denying services to crypto businesses.

401(k) Alternative Assets Access - Directs the Department of Labor to revisit ERISA guidance, potentially allowing 401(k) plans to include alternative assets such as private equity, real estate, and cryptocurrencies. With Americans holding around $8.7 trillion in 401(k) assets, this represents a massive potential onramp for crypto adoption in retirement accounts.

Read more: AInvest

Weekly Bonzo Bytes 𝕏 Space - Friday, August 15 at 12 PM ET

Join us on Friday for another Weekly Bonzo Bytes Space covering protocol updates, ecosystem news, and community Q&A.

Set a reminder on 𝕏

Thank you for being part of Bonzo Finance and the Hedera DeFi 2.0 journey.

- The Bonzo Finance Team

The views shared in this newsletter are personal opinions and do not represent official Bonzo Finance advice. Any forward-looking statements about Bonzo Finance and its associated projects involve risks and uncertainties. Please do your own research and consult a professional before making any investment decisions. Bonzo Finance is not liable for any actions taken based on the information provided.