Welcome to Finance Redefined, your weekly dose of important decentralized finance (DeFi) insights — a e-newsletter crafted to deliver you essentially the most important developments from the previous week.
This week, Finance Redefined seems on the rising recognition of zero-knowledge proof-based scalable options. Zero-knowledge rollups (ZK-rollups) expertise has gained a number of traction over the previous yr because of its elevated use within the Ethereum ecosystem.
Bug bounties are seen as an awesome reward system for white hat hackers to weed out bugs within the DeFi ecosystem, which frequently fall prey to exploits. Nonetheless, current evaluation suggests these applications have blended outcomes.
After a sequence of exploits on the Multichain protocol over the previous couple of weeks, the founding father of Connext proposed a “Sovereign Bridged Token” commonplace to stop future points and exploits.
Algorand’s decentralized lending protocol is ready to wind down by year-end as builders claimed constructing a borrowing and lending protocol is “not a viable path” for the protocol.
The highest 100 DeFi tokens had one other blended week by way of value motion, adopted by a late surge on July 13, aided by the partial verdict for Ripple in its struggle towards the USA Securities and Alternate 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 revealed by ZKValidator.
The node infrastructure operator’s “State of ZK Q2” report displays on important occasions throughout the ZK ecosystem, with notable launches of ZK-powered layer 2’s highlighting the usage of the expertise for scaling as 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 accordance with a July 11 announcement, builders’ “perception within the energy of Algorand’s expertise and novel consensus algorithm has not wavered,” nonetheless, the Algofi platform will wind down quickly.
Bug bounties may help safe blockchain networks, however have blended outcomes
Bug bounties are applications organizations provide to incentivize safety researchers or moral or white hat hackers to search out and report vulnerabilities of their software program, web sites or methods. 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 sometimes set up tips and guidelines outlining the scope of this system, eligible targets and the sorts of vulnerabilities they’re desirous about. Relying on the severity and influence of the found vulnerability, they might additionally outline the rewards supplied for legitimate bug submissions, starting from small quantities of cash to important 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 as a consequence of a vulnerability in its mintProtocolReserves perform.
In accordance with information 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’ commonplace after Multichain incident
A July 7 Ethereum enchancment proposal (EIP) seeks to standardize how tokens are bridged between networks. The “Sovereign Bridged Token” commonplace, 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 submit, Bhuptani claimed the protocol would assist forestall points just like the July 6 Multichain incident, which some specialists have described as a hack.
DeFi market overview
DeFi’s whole market worth noticed a bullish surge after three bearish weeks. Knowledge from Cointelegraph Markets Professional and TradingView reveals that DeFi’s prime 100 tokens by market capitalization had a bullish week, with most tokens buying and selling within the inexperienced. The overall worth locked in DeFi protocols remained under $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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