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.

This week, Finance Redefines addresses the rising recognition of zero-knowledge, evidence-based, scalable options. Zero-Information Rollups (ZK-Rollups) know-how has gained prominence over the previous 12 months because of its rising use within the Ethereum ecosystem.

Bug bounties are thought-about a terrific reward system for white hat hackers to root out bugs within the DeFi ecosystem, which regularly fall sufferer to exploits. Nonetheless, current evaluation means that these packages are yielding combined outcomes.

After a sequence of exploits within the multichain protocol over the previous few weeks, the founding father of Connext proposed a “Sovereign Bridged Token” normal to stop future issues and exploits.

Algorand’s decentralized lending protocol is about to be retired by the top of the 12 months as builders claimed creating a borrowing and lending protocol is “not a viable possibility” for the protocol.

The highest 100 DeFi tokens noticed one other combined week by way of value motion, adopted by a late surge on July 13, helped by Ripple’s partial ruling in its battle in opposition to the US Securities and Change Commission (SEC). , leading to an 84% improve in XRP (XRP) value.

Ethereum’s scaling protocols will drive zero-knowledge utilization in 2023

Ethereum scaling protocols are dominating using ZK rollups, with large market launches, new analysis, and wholesome competitors amongst key highlights in an trade report printed by ZKValidator.

The Node Infrastructure Operator’s State of ZK Q2 report displays key occasions throughout the ZK ecosystem, with notable launches of ZK-based Layer 2 units highlighting using the know-how to scale in comparison with different market segments.

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Algorand’s decentralized lending protocol, Algofi, is about to shut by the top of 2023

Algofi, the credit score and lending protocol primarily based on the decentralized finance blockchain Algorand, will quickly be retired.

Based on a July 11 announcement, “builders’ perception within the energy of Algorand’s know-how and novel consensus algorithm has not waned,” however the Algofi platform will quickly be retired.

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Bug bounties can assist safe blockchain networks however have had combined outcomes

Bug bounties are packages that organizations supply to inspire safety researchers or moral or white hat hackers to search out and report vulnerabilities of their software program, web sites or programs. Bug bounties purpose to enhance total safety by figuring out potential vulnerabilities and fixing them earlier than malicious actors can exploit them.

Organizations that implement bug bounty packages sometimes set up insurance policies and guidelines that define the scope of this system, applicable targets, and the kinds of vulnerabilities through which they’re . Relying on the severity and affect of the found vulnerability, they’ll additionally set the rewards provided for legitimate bug submissions, starting from small quantities of cash to important money prizes.

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Arbitrum-based Rodeo Finance has been exploited for the second time and stole $1.5 million

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, leading to a lack of over 810 Ether (ETH). Rodeo Finance was beforehand exploited for round $89,000 on July 5 attributable to a vulnerability in its mintProtocolReserves operate.

Based on blockchain analytics agency PeckShield, the exploiter later transferred the stolen funds from Arbitrum to Ethereum, trading 285 ETH for unshETH. The exploiter then deposited the ETH on the Eth2 staking. Lastly, the attacker funneled the stolen ETH by way of the favored Twister Money mixer service, which attackers typically use as an exit path to obfuscate the transaction’s footprint.

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Connext Founder Proposes Sovereign Bridged Token Commonplace After Multichain Incident

A July 7 Ethereum Enchancment Proposal (EIP) goals to standardize the best way 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, the founding father of the Connext bridging protocol. In a July 7 social media publish, Bhuptani claimed the protocol would assist stop issues just like the July 6 multichain incident, which some specialists have dubbed a hack.

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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 exhibits that DeFi’s prime 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 under $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.

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