Over the past six months, we have spent significant time strengthening the protocol’s security architecture as Extended continues to scale. Throughout that work, we were guided by a fundamental reality of DeFi: defenders must protect against every possible code vulnerability and economic attack vector, while an attacker only needs to find a single successful path. That does not make DeFi inherently unsafe. It means protocols should be designed not only to prevent incidents, but also to assume that failures are possible and limit their impact when they occur. At Extended, this philosophy is reflected in several layers of protection: - User funds are held in a dedicated Treasury contract that is intentionally kept separate from the trading application, making it significantly easier to audit and reason about. - The trading engine, risk engine and other complex application logic operate through separate contracts and do not custody user funds. - The Treasury contract incorporates circuit breakers that automatically pause withdrawals if abnormal withdrawal activity is detected. - Where a circuit breaker is triggered, further withdrawals may require review and approval through the applicable security-review and multisig process. - Cooldown periods and timelocks apply to certain sensitive Treasury upgrades and administrative actions, reducing the risk of immediate changes to critical controls. Similar principles apply beyond smart contracts. Recent events reinforced the importance of strong access controls and limiting the impact of any single compromised account. We have since tightened permissions and strengthened controls around official communication channels and privileged access. None of these mechanisms eliminates the possibility of exploits. The objective is different. Rather than assuming perfect security, we make it significantly less likely that a single failure could compromise the entirety of user funds. Whether an issue originates from application logic, infrastructure, bridges, oracle providers, compromised accounts, operational mistakes or economic attack vectors, the goal is to contain its impact and minimise the amount of capital that can be affected. These controls are designed to reduce the impact of potential failure scenarios, but they should not be interpreted as guaranteeing a maximum loss under every scenario.

Extended aimed to complete all key milestones by the end of H1. Since then, besides expanding the product, we've made significant progress on strategic partnerships and fundraising, both of which took longer than expected given their complexity. As a result, one key milestone was pushed back: progressing the decentralisation roadmap. Yesterday, we announced that Extended is now working to decentralize the sequencing layer, laying the groundwork for its future tokenomics. We'll share more updates as the rollout continues. While the timeline has shifted, our commitment to the early community hasn't. Specifically: 1. The current plan remains for 30% to be allocated to the early community (points holders). 2. The final number of points after slashing will not exceed the originally budgeted 70 million points. Slashing will take place in the coming weeks. Extended may make further adjustments before TGE if additional issues affecting programme integrity are identified. 3. Until the end of the program, we'll be distributing up to 600,000 points weekly. Please note that eligibility for any airdrop will be subject to separate terms and conditions. Having no points slashed does not guarantee eligibility for an airdrop, any particular allocation, conversion rate or value. We appreciate everyone's continued support. Our priority remains unchanged: building the right product, infrastructure, and distribution to create a sustainable protocol.

6 months of building. what's next? TLDR: We focused on putting in place the product, partnership and governance foundations for the next phase of Extended. TradFi partnership, hundreds of new crypto and RWA markets, spot trading and further decentralisation are coming. Our approach to growth remains unchanged: no KOL round, no paid promotions, no paid PR, no podcast sponsorships and no paid market-making arrangements. Over the past 6 months, the team at @extendedapp has been focused on a fairly simple objective: building the product, infrastructure and partnerships required to support the next stage of growth. A lot of the work happened behind the scenes but we are now getting to the point where the pieces are starting to come together. Product Some of the key items are already live: - Multi-asset collateral, allowing users to post wBTC, ETH and USDT alongside USDC. Besides expanding the collateral universe, it also unlocks simple cash-and-carry strategies directly on the platform. - Full email onboarding, including gasless deposits and withdrawals. While not particularly exciting on its own, it unlocks fiat on/off-ramp integrations that are required to onboard non-native users. - Significant improvements to UI stability, responsiveness and overall user experience, driven largely by user feedback collected over the past months. Several important pieces are coming next: - Spot trading, which we view as a table-stakes component of a complete exchange experience and an important UX improvement to multi-asset collateral. - Opening up our lending infrastructure beyond the exchange itself, allowing users to deposit wBTC, ETH and USDT, borrow USDC and deploy capital elsewhere. - New trading infrastructure that will unlock hundreds of additional crypto and RWA markets. Internally, this is the product initiative we are most excited about. Growth Over the same period, we have spent a lot of time thinking about how Extended should grow. One principle remains unchanged: we do not pay for KOL promotions, PR, podcast sponsorships or market-making arrangements. This applies equally to cash, tokens and points. Its a slower path and not the easiest one but over time we have become increasingly convinced that sustainable growth is built on product quality, distribution and community rather than financial incentives. We have also completed a number of less visible but equally important initiatives: - Finalised the legal and commercial framework for our first tradfi partnership, which unlocks some of the product initiatives mentioned above and establishes a foundation for future institutional integrations. - Secured the majority of the long-term partners who will help operate, secure and govern Extended. We are proud of the quality of the organisations that chose to support the vision and will be sharing more details separately. - Spent considerable time with our largest users and major ecosystem participants to gather feedback and ensure alignment around the long-term direction of the protocol. - Remained committed to our original targets for early community rewards, despite certain things taking longer than anticipated. This month is an important one for Extended. It will conclude the team's efforts over the past 6 months and mark the beginning of the next phase: further decentralisation, ecosystem expansion and the transition to a community-owned protocol.