Welcome to Finance Redefined, your weekly dose of key decentralized finance (DeFi) insights – a publication to carry you key developments over the previous week.

The second week of November might have been a bullish week as CPI knowledge launched on November 10 pointed to decrease than anticipated inflation. This resulted in a big rally for conventional stocks, however the crypto ecosystem is at the moment battling its personal demon.

The FTX turmoil has not solely boosted the value of the native FTX token (FTT), however each token related to Sam Bankman-Fried or his corporations. Solana’s SOL, a high 10 cryptocurrency and one in every of Bankman-Fried’s largest investments, misplaced 32% of its market cap over the previous few days.

Chainlink Labs stated it could supply proof-of-reserve providers for aggressive exchanges. The brand new idea got here to mild after the collapse of the FTX change as a measure that may restore belief in crypto exchanges via extra transparency.

The DeFi ecosystem has additionally been criticized for denying person entry based mostly on pockets content material. Entrepreneur Brad Mills criticized the so-called decentralized ecosystem, saying DeFi has rebuilt every thing incorrect with Wall Avenue on a blockchain.

It has been a massacre on Crypto Avenue for the previous week, with the vast majority of the highest 100 DeFi tokens trading there within the wake of the FTX turmoil.

Solana TVL falls 32.4% as FTX turbulence shakes the ecosystem

Solana chain’s complete locked value (TVL) has plunged 32.4% over the previous 24 hours as information of FTX collapsing despatched ripples via the crypto ecosystem.

In line with DefiLlama, Solana’s TVL has fallen to $423.68 million on the time of writing, down 32.4% over the previous 24 hours, a far cry from its all-time high of $10.17 billion on March 9. November 2021.

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Chainlink Labs provides a proof-of-reserve service for aggressive exchanges

Chainlink Labs on Nov. 10 provided its Proof-of-Reserve product as an answer to future belief points within the crypto change market. In a Twitter thread, Chainlink Labs requested, “Will crypto proceed to repeat the errors of the standard black field financial trade? Or will a greater system emerge?”

In response to that query, it provided its Proof-of-Reserve product, which it stated is helpful “to trace centralized change asset reserves, off-chain checking account balances, cross-chain collateral, actual asset reserves, and extra.” extra to confirm extra.”

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DeFi has been criticized for denying person entry based mostly on pockets content material

Whereas DeFi is anticipated to be an improve of conventional financial mechanisms, some imagine denying customers entry to decentralized exchanges based mostly on their wallets is a step backwards.

In a tweet, entrepreneur Brad Mills criticized DeFi for denying customers entry to decentralized exchanges based mostly on varied components corresponding to pockets location and content material. Due to this, Mills described Web3’s future as a “surveillance panopticon,” saying that it rebuilt every thing incorrect with Wall Avenue however on a blockchain. Within the tweet, Mills additionally shared a picture of a pop-up message from 1inch Community’s decentralized software proscribing entry based mostly on the pockets deal with used.

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Report: The GALA token exploit resulted from a public non-public key leak on GitHub

In line with a brand new Nov. 7 submit by blockchain safety agency SlowMist, it seems that final week’s token exploits affecting GameFi challenge Gala Video games resulted from a public leak of relevant safety keys on GitHub. As SlowMist introduced, pNetwork, the cross-chain interoperability bridge utilized by Gala Video games on the BNB sensible chain, had three privileged roles in its pGALA sensible contract.

SlowMist additional defined that each the DEFAULT_ADMIN_ROLE and MINTER_ROLE roles have been managed throughout pNetwork initialization. In the meantime, the proxy admin contract was an exterior deal with chargeable for upgrading the pGALA contract. Nevertheless, the corporate posted a screenshot claiming that the plaintext non-public key for the proxy admin proprietor’s deal with was uncovered and publicly viewable on GitHub.

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Overview of the DeFi market

Analytical knowledge reveals that DeFi’s complete locked value has dropped to $41 billion. Knowledge from Cointelegraph Markets Professional and TradingView reveals that DeFi’s high 100 tokens by market cap skilled a bearish collapse on the again of the FTX saga, with the vast majority of tokens posting double-digit losses over the previous week.

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.