Welcome to Finance Redefined, your weekly dose of important decentralized finance (DeFi) insights — a publication crafted to convey you vital developments over the past week.

The much-awaited airdrop of layer-2 scalability protocol Arbitrum has dominated headlines all through the week. The hype across the token has led to exploits, faux airdrops and even a big surge in quantity for different layer-2 protocols.

Aside from the Arbitrum hype, the Euler Finance hack has additionally seen some new developments. The individual or group behind the assault returned a portion of the funds after the protocol builders put a million-dollar bounty on their heads. A few of these funds have been additionally moved to blacklisted North Korean addresses.

Whereas all of us learn rather a lot about DeFi exploits from time to time, a latest report make clear the tens of millions of {dollars} in insurance coverage payouts in 2022. Ninety % of all DeFi insurance coverage claims paid out since inception have been distributed in 2022.

In one other growth round Ethereum staking, MetaMask Institutional has launched a brand new staking market to offer institutional customers entry to solo Ether (ETH) staking.

The highest 100 DeFi tokens had a blended week by way of worth motion. A majority of them traded within the inexperienced on the weekly charts, whereas a couple of others misplaced some positive factors in the course of the market volatility towards the top of the week.

Beware of pretend Arbitrum airdrops, neighborhood warns

Ethereum layer-2 scaling answer Arbitrum’s upcoming ARB token airdrop seems to have develop into a well-liked goal for scammers, with the neighborhood warning of lots of of phishing scams aimed toward tricking crypto customers. The hype across the airdrop has led to various makes an attempt from scammers to arrange faux token airdrops aimed toward stealing funds from victims forward of the official occasion.

The hype round its airdrop has additionally helped one other layer-2 answer, zkSync, to see vital week-over-week progress. After the Arbitrum airdrop announcement, eligible crypto customers are additionally already promoting them in OTC markets.

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DeFi insurance coverage payouts amounted to $34.4M in 2022: Report

In accordance with a March 21 report by DeFi analytics agency OpenCover, DeFi insurance coverage firms paid out $34.4 million in claims in 2022. Solely $36.9 million of such claims have been paid since OpenCover started monitoring the information. Notable payouts embody $22.5 million in the course of the collapse of the Terra ecosystem in Could 2022 and $4.7 million from the collapse of the crypto alternate FTX in November 2022.

Regardless of the surge in payouts, OpenCover stated solely $231 million value of funds in DeFi protocols had been insured as per its information, representing simply 0.5% of the full worth locked within the DeFi business. Cointelegraph reported on Jan. 5 that DeFi safety exploits rose by 47.4% year-over-year in 2022 to $3.64 billion.

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Euler Finance exploit saga sees new developments

Ethereum-based lending protocol Euler Finance could possibly be a step nearer to recovering funds stolen in a $196 million flash mortgage assault final week, with non-public discussions now initiated with the exploiter.

In an on-chain message to Euler on March 20, days after sending funds to a red-flagged North Korean deal with, the exploiter claimed they wished to “come to an settlement” with Euler.

On March 18, roughly 3,000 ETH ($5.4 million) was returned to Euler Finance’s deployer deal with from the hacker’s deal with. Blockchain investigator PeckShield recognized three transactions that have been used to ship the funds.

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MetaMask Institutional unlocks solo ETH staking market

MetaMask Institutional is ready to be an avenue for creating new Ethereum validators after saying a brand new staking market for its institutional shoppers.

Establishments that use MetaMask’s institutional-grade pockets and custody service will be capable to handle ETH staking via 4 distributors — ConsenSys Staking, Allnodes, Blockdaemon and Kiln. {The marketplace} goals to simplify entry and administration of solo staking, permitting establishments to develop into Ethereum community validators.

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DeFi market overview

Analytical information reveals that DeFi’s complete market worth rose above $50 billion this previous week. Information from Cointelegraph Markets Professional and TradingView exhibits that DeFi’s high 100 tokens by market capitalization had a bullish week, with many of the tokens buying and selling in inexperienced, barring a couple of.

Thanks for studying our abstract of this week’s most impactful DeFi developments. Be part of us subsequent Friday for extra tales, insights and schooling on this dynamically advancing area.