Welcome to Finance Redefined, your weekly dose of key decentralized finance (DeFi) insights – a e-newsletter to convey you key developments over the previous week.
Following Mango Markets’ exploit final week, the Compound protocol suspended supply of 4 tokens as collateral to guard it from value manipulation.
Crypto staking protocol Freeway stated one in every of its trading methods “seems to have failed,” forcing the corporate to droop its companies earlier this week. October continues to be dominated by DeFi hacks as one other DeFi lockdown protocol, Crew Finance, misplaced $14.5 million throughout contract migration regardless of an audit clearance.
The MakerDAO group voted to put $1.6 billion in coin (USDC) in custody with institutional brokerage platform Coinbase Prime.
The highest 100 DeFi tokens confirmed bullish momentum after virtually three weeks of value motion dominated by the bears. Nearly all of tokens traded within the inexperienced on the weekly charts, with a few of them posting double-digit features.
After Mango Markets exploit, Compound 4 holds tokens to guard towards value manipulation
Decentralized lending protocol Compound has suspended the supply of 4 tokens as collateral on its platform to guard customers from potential value manipulation-related assaults, much like Mango Markets’ latest $117 million exploit, in response to a suggestion within the governance discussion board by Compound not too long ago handed.
The pause won’t permit customers to submit Yearn.finance’s YFI (YFI), 0x’s ZRX, Fundamental Consideration Token (BAT), and Maker’s MKR (MKR) as collateral for borrowing.
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Freeway’s pullback cease is attributed to a “failed” trading technique
Crypto staking platform Freeway pointed to the failure of one in every of its cryptocurrency trading methods together with market circumstances as the principle purpose for halting person withdrawals earlier this week.
The crypto yield platform introduced on Oct. 23 that it was halting numerous transactions associated to its high-yield Supercharger product, citing “unprecedented volatility” on the time, with out offering additional particulars on the time, leading to a plunge within the token value led.
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Crew Finance was exploited for $14.5M throughout log migration regardless of contract assessment
DeFi lockup protocol Crew Finance stated over $14.5 million price of tokens had been exploited via the Uniswap v2 to v3 migration characteristic on its platform. In response to blockchain safety agency PeckShield, the hacker transferred liquidity from Uniswap v2 property on Crew Finance to an attacker-controlled v3 pair with skewed costs. By tying tokens to the contract, the attacker bypassed current validation mechanisms and pocketed the large leftovers as refunds for winnings.
Uniswap v3 is designed with higher effectivity for Liquidity Suppliers (LP) than v2 on its decentralized alternate. Nonetheless, v2 good contracts are nonetheless operational and customers should work together with a migration good contract emigrate their LP property from v2 to v3. PeckShield estimates that the preliminary assault vector required for this interplay prices just one.76 Ether (ETH).
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The MakerDAO Group Votes to Custody $1.6B in USDC at Coinbase
Coinbase Prime, an institutional prime brokerage platform for crypto property, introduced on Oct. 24 that it has partnered with MakerDAO to develop into custodian of $1.6 billion stablecoin USDC, whose largest single proprietor is MakerDAO.
The MakerDAO group voted to approve custodial, which is able to permit their group to earn a 1.5% reward on their USDC whereas holding funds with a number one institutional custodian.
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Overview of the DeFi market
Analytical information exhibits that the whole value of DeFi noticed a rise in direction of the top of October, with the whole locked value (TVL) rising to over $50 billion on the time of writing. Knowledge from Cointelegraph Markets Professional and TradingView exhibits that DeFi’s high 100 tokens by market cap had a bullish week, with the vast majority of tokens trading within the inexperienced on the 7-day chart, excluding a number of.
Theta Community (THETA) was the most important gainer over the previous week, posting a 14.68% weekly achieve, adopted by Avalance (AVAX) with a 12.85% achieve on the 7-day chart. Many different DeFi tokens posted single-digit weekly features, excluding a number of that traded within the purple.
Thanks for studying our roundup of this week’s most influential DeFi developments. Be part of us subsequent Friday for extra tales, insights and knowledge on this dynamically evolving house.