Welcome to Finance Redefined, your weekly dose of key insights into decentralized finance (DeFi) – a publication bringing you the highest developments over the previous week.
In Q2 2023, over $208 million was exploited and hacked from DeFi protocols, and with solely $4.5 million in funds recovered, whole losses from exploits totaled over $204 million.
The DeFi ecosystem is an ever-growing business with billions of {dollars} in day by day trading quantity. Nonetheless, it stays area of interest for a small demographic of the crypto business and out of attain for some. For an in-depth take a look at DeFi, see Cointelegraph Analysis’s new report titled, “Investing in DeFi: A Complete Information.”
DeFi lending protocol Maple Finance has determined to supply direct lending to some debtors as a substitute of solely counting on pool delegates to offer capital to fill the void left by bankrupt main lending protocols like BlockFi.
The recognition of Bitcoin’s BRC-20 token commonplace has prompted many main pockets service suppliers to help the brand new token commonplace, and transactions on the Optimism community elevated by 67% after the Bedrock improve.
The highest 100 DeFi tokens continued their upward pattern into the final week of June, with most tokens trading within the inexperienced.
Over $204 million misplaced to DeFi hacks and scams in Q2: report
In response to a June 27 report by Web3 portfolio app De.Fi, over $204 million was misplaced to DeFi hacks and scams in Q2 2023.
The report, titled “Q2 De.Fi Rekt Report,” was primarily based partly on information from De.Fi’s Rekt database. Over $208.5 million was exploited throughout the quarter, however $4.5 million was recovered by regulation enforcement, offers with hackers, and different restoration strategies. In response to the report, the variety of DeFi hacks elevated “practically sevenfold” year-on-year in Q2, with 117 incidents in comparison with simply 17 in the identical quarter of 2022. Total, over $665 million was misplaced within the first quarter, accounting for half of it 12 months 2023.
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Maple Finance Declares Direct Lending to Fill the Void Left by BlockFi and Celsius
Web3 lending platform Maple Finance has introduced the launch of a direct lending program, in line with a June 28 truth sheet from the platform’s improvement staff. This system goals to exchange companies beforehand supplied by Celsius, BlockFi and different now-bankrupt lenders.
Traditionally, Maple has relied on credit score professionals often called “pool delegates” to offer capital for these loans. For instance, Celsius used Maple to create a Wrapped Ether (WETH) mortgage pool in February 2022.
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Transactions on Optimism Community up 67% after Bedrock – Nansen improve
In response to a June 26 Twitter thread by blockchain analytics agency Nansen, transactions on the Optimism community surged 67% following the June 7 “Bedrock” improve. Earlier than the improve, the community was seeing fewer than 300,000 transactions per day, however by mid-June that quantity had risen to over 550,000.
Optimism noticed a pointy spike in transactions instantly after the onerous fork, surging to over 400,000 round June 5-9. After the preliminary surge, quantity elevated extra slowly, peaking above 550,000 on or round June fifteenth. It then slowly started to say no, reaching 500,000 transactions per day by the top of knowledge assortment round June 23, in line with a chart revealed in Nansen’s Twitter thread.
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Regardless of the market downturn, pockets suppliers are rolling out BRC-20 token help
On June 21, self-custody pockets supplier BitKeep introduced help for BRC-20 tokens issued on the Bitcoin community. This function permits customers to view, charge, and switch BRC-20 tokens and non-fungible tokens. The builders additionally said that BRC-20 in-wallet swaps are “arriving”. [the] Future.”
Final month, cryptocurrency alternate OKX additionally introduced help for BRC-20 property by the OKX Pockets app. Many centralized and decentralized exchanges have additionally launched BRC-20 help.
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Overview of the DeFi market
The general market value of DeFi skilled an upward pattern after three weeks of decline. Knowledge from Cointelegraph Markets Professional and TradingView reveals that DeFi’s high 100 tokens by market cap had a bullish week, with most tokens trading within the inexperienced. The entire value locked within the DeFi protocols stayed beneath $50 billion.
Thanks for studying our roundup of this week’s most influential DeFi developments. Be a part of us subsequent Friday for extra tales, insights and data on this dynamically evolving area.