Welcome to Finance Redefined, your weekly dose of important decentralized finance (DeFi) insights — a publication crafted to carry you essentially the most vital developments from the previous week.
This week, Finance Redefined appears to be like on the rising reputation of zero-knowledge proof-based scalable options. Zero-knowledge rollups (ZK-rollups) know-how has gained plenty of traction over the previous yr due to its elevated use within the Ethereum ecosystem.
Bug bounties are seen as a fantastic reward system for white hat hackers to weed out bugs within the DeFi ecosystem, which regularly fall prey to exploits. Nevertheless, latest evaluation suggests these applications have combined outcomes.
After a collection of exploits on the Multichain protocol over the previous couple of weeks, the founding father of Connext proposed a “Sovereign Bridged Token” normal to stop future points and exploits.
Algorand’s decentralized lending protocol is about to wind down by year-end as builders claimed constructing a borrowing and lending protocol is “now not a viable path” for the protocol.
The highest 100 DeFi tokens had one other combined week when it comes to value motion, adopted by a late surge on July 13, aided by the partial verdict for Ripple in its combat in opposition to america Securities and Change Fee (SEC), resulting in an 84% surge within the XRP (XRP) value.
Ethereum scaling protocols drive zero-knowledge proof use in 2023
Ethereum scaling protocols dominate the usage of ZK-rollups, with main launches, new analysis and wholesome competitors among the many key highlights in a sector report printed by ZKValidator.
The node infrastructure operator’s “State of ZK Q2” report displays on vital occasions throughout the ZK ecosystem, with notable launches of ZK-powered layer 2’s highlighting the usage of the know-how for scaling compared with different market segments.
Algorand decentralized lending protocol Algofi to close down by finish of 2023
Algofi, the borrowing and lending protocol constructed on the decentralized finance blockchain Algorand, will quickly shut down.
In line with a July 11 announcement, builders’ “perception within the energy of Algorand’s know-how and novel consensus algorithm has not wavered,” nevertheless, the Algofi platform will wind down quickly.
Bug bounties may also help safe blockchain networks, however have combined outcomes
Bug bounties are applications organizations supply to incentivize safety researchers or moral or white hat hackers to search out and report vulnerabilities of their software program, web sites or techniques. Bug bounties goal to enhance general safety by figuring out and fixing potential weaknesses earlier than malicious actors can exploit them.
Organizations that implement bug bounty applications usually set up pointers and guidelines outlining the scope of this system, eligible targets and the varieties of vulnerabilities they’re occupied with. Relying on the severity and affect of the found vulnerability, they could additionally outline the rewards supplied for legitimate bug submissions, starting from small quantities of cash to vital money prizes.
Arbitrum-based Rodeo Finance exploited for the second time, $1.5 million stolen
Arbitrum-based decentralized finance (DeFi) protocol Rodeo Finance was exploited for $1.53 million on July 11. The DeFi protocol was exploited utilizing a code vulnerability in its Oracle, resulting in a lack of over 810 Ether (ETH). Rodeo Finance was earlier exploited on July 5 for round $89,000 on account of a vulnerability in its mintProtocolReserves operate.
In line with knowledge shared by blockchain analytic agency PeckShield, the exploiter later bridged the stolen funds from Arbitrum to Ethereum and swapped 285 ETH for unshETH. The exploiter then deposited the ETH on Eth2 staking. Lastly, the exploiter routed the stolen ETH utilizing the favored mixer service Twister Money, which exploiters usually use as an exit path to obscure the transaction’s footprint.
Connext founder proposes ‘Sovereign Bridged Token’ normal after Multichain incident
A July 7 Ethereum enchancment proposal (EIP) seeks to standardize how tokens are bridged between networks. The “Sovereign Bridged Token” normal, or EIP-7281, permits token issuers to create canonical bridges throughout a number of networks.
The proposal was co-authored by Arjun Bhuptani, founding father of the Connext bridging protocol. In a July 7 social media publish, Bhuptani claimed the protocol would assist stop points just like the July 6 Multichain incident, which some consultants have described as a hack.
DeFi market overview
DeFi’s complete market worth noticed a bullish surge after three bearish weeks. Knowledge from Cointelegraph Markets Professional and TradingView reveals that DeFi’s high 100 tokens by market capitalization had a bullish week, with most tokens buying and selling within the inexperienced. The entire worth locked in DeFi protocols remained beneath $50 billion.
Thanks for studying our abstract of this week’s most impactful DeFi developments. Be a part of us subsequent Friday for extra tales, insights and training concerning this dynamically advancing area.
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