Welcome to Finance Redefined, your weekly dose of critical decentralised finance (DeFi) insights-a newsletter designed to keep you abreast of the most relevant events that have occurred during the last week.
This past week, there were significant changes in the lead-up to the September 15 Ethereum Merge. Bitfinex became the latest cryptocurrency exchange to endorse the chain split token.
While DeFi bridge attacks have grown commonplace this year, the creators of Rainbow Bridge were able to intercept an exploit attempt within seconds, resulting in the loss of the hacker’s security deposit.
The developer of Tornado Cash, who was detained last week, was placed in a 90-day judicial prison pending accusations. It was not well received by the crypto community, which has aggressively rallied around the developer and accused the government of stifling freedom.
This week, Cardano’s testnet and the Vasil hard fork ran into more problems. Cardano’s creator said on Twitter that worries about the hard fork are “very toxic and harmful.”
The price activity of the top 100 DeFi tokens was varied this week, with the bulk of them trading in the negative on the weekly charts and only a few tokens showing double-digit increases.
A hacker attempts and fails to exploit the bridge protocol.
Malicious groups are increasingly targeting cross-chain bridges. However, not every hacker is able to make millions from their exploit attempts. Some ultimately lose money from their own pockets.
Alex Shevchenko, the CEO of Aurora Labs, recounted in a Twitter thread how a hacker attempted to exploit the Rainbow Bridge but lost 5 ether (ETH), worth around $8,000 at the time of writing.
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Bitfinex launches new chain split coins ahead of the Ethereum Merge.
iFinex, the firm behind Bitfinex Derivatives, announced on Tuesday the debut of a new service available to customers prior to the highly anticipated Ethereum Merge. The exchange now provides Chain Split Ethereum Tokens (CSTs).
Proof-of-work (PoW) and proof-of-stake (PoS) tokens reflect the two systems participating in the Merge: ETHW (PoW) and ETHS (PoS) (PoS). Bitfinex created new trading tokens to allow customers to trade during the anticipated forking event.The coins will be accessible via Bitfinex’s derivatives platform.
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The 90-day jail sentence given to the person who made Tornado Cash has been criticized.
A judge in the Netherlands determined that Tornado Cash creator Alexey Pertsev must remain in jail for an additional 90 days pending proceedings. The crypto community united to demand the developer’s release, perplexed by the choice.
Ryan Adams, a cryptocurrency investor, stated in a tweet that the developer contributed to the public good with his code contributions, but that “a few evil folks” chose to exploit Pertsev’s work and now the developer must bear the repercussions.
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What is happening with Cardano’s testnet and the Vasil fork?
The creator of Cardano, Charles Hoskinson, has continued to deny claims that Cardano’s testnet is “catastrophically damaged,” which would mean that the Vasil hard fork must be used in the end.
In a Sunday Twitter thread, Hoskinson expressed his displeasure with several videos stating Cardano’s testnet had a “catastrophic” flaw. These videos are based on a Friday discussion by Cardano ecosystem engineer Adam Dean.
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DeFi market overview.
Due to the market downturn at the conclusion of the previous week, DeFi’s total locked value decreased by $3 billion, according to analytical data. TVL was worth around $63.26 billion at the time of publication. According to data from Cointelegraph Markets Pro and TradingView, the top 100 DeFi tokens by market capitalization had a mixed week, with many tokens trading in the red and a few tokens making double-digit gains.
Theta Fuel (TFUEL) had the biggest weekly increase at 19.94%, followed by Curve DAO Token (CRV) with an increase of 11.76%. Convex Finance (CVX) climbed 9.48% on the weekly charts, while Pancake Swap (CAKE) increased 7.5%.
Thank you for reading our recap of this week’s most significant news in DeFi. Join us the following Friday for further tales, insights, and education in this rapidly evolving field.
