Welcome to Finance Redefined, your weekly dose of important decentralized finance (DeFi) insights — a publication crafted to carry you probably the most important developments from the previous week.
The previous week in DeFi was dominated by developments within the standard decentralized change platform Uniswap after it introduced a 0.15% swap charge beginning on Oct. 17, and an open-source hook on Uniswap generated controversy attributable to Know Your Customer (KYC) checks.
In different main DeFi developments, Platypus Finance managed to get better 90% of the funds it misplaced to an Oct. 12 exploit whereas the layer-2 zero-knowledge Ethereum Virtual Machine (zkEVM) “Scroll” launched its mainnet.
The high 100 DeFi tokens by market capitalization had a bullish week due to Friday momentum out there, with a majority of the tokens buying and selling in inexperienced and recording double-digit positive aspects on the weekly charts. However, the worth motion didn’t mirror on the entire worth locked (TVL), which fell by almost $2 billion.
Ethereum LSDFi sector grew almost 60x since January in post-Shapella surge: CoinGecko
The Ethereum liquid staking derivatives finance (LSDFi) ecosystem has seen a surge in development this yr as Ether (ETH) holders selected to stake fairly than liquidate.
Despite ETH withdrawals being enabled with the Ethereum Shapella upgrade in April 2023, an Oct. 16 LSDFi report from crypto knowledge aggregator CoinGecko stated the sector has grown by 58.7x since January. By August 2023, LSD protocols accounted for 43.7% of the entire 26.4 million ETH staked, with Lido having the lion’s share at virtually a 3rd of the entire staked market.
Ethereum layer-2 zkEVM “Scroll” confirms mainnet launch
Scroll, a brand new contender within the zkEVM house that works to scale the blockchain, has confirmed the launch of its mainnet.
The workforce behind Scroll introduced the launch in an Oct. 17 publish and added that present functions and developer software kits on Ethereum can now migrate to the brand new scaling answer. “Everything functions right out of the box,” the Scroll workforce stated.
Platypus Finance recovers 90% of property misplaced in exploit
DeFi protocol Platypus Finance stated it had recovered 90% of property stolen in a safety breach final week.
According to the Oct. 17 announcement, the protocol’s web loss was restricted to 18,000 Avalanche (AVAX) value $167,400 on the time. As the hacker voluntarily returned the funds, Platypus Finance said it “will guarantee that no legal action will be pursued.” It additionally hinted that withdrawal data relating to customers’ property will quickly be posted.
Uniswap costs 0.15% swap charges starting Oct. 17
Decentralized change Uniswap started charging a 0.15% swap charge on sure tokens in its internet utility and pockets on Oct. 17.
According to a publish by Uniswap founder Hayden Adams, the affected tokens are ETH, USD Coin (USDC), Wrapped Ether (wETH), Tether (USDT), Dai (DAI), Wrapped Bitcoin (WBTC), Angle Protocol’s agEUR, Gemini Dollar (GUSD), Liquidity USD (LUSD), Euro Coin (EUROC) and StraitsX Singapore Dollar (XSGD). Shortly after publication, a spokesperson for Uniswap reached out to Cointelegraph, stating that “both the input and output token need to be on the list for the fee to apply.”
KYC hook for Uniswap v4 stirs group controversy
A brand new hook out there on an open-source listing for Uniswap v4 hooks is sparking controversy throughout the crypto group. The hook permits customers to be checked for KYC earlier than they’ll commerce in token swimming pools.
Criticizing the hook, a person on X (previously Twitter) famous that the hook opens up the chance of decentralized finance protocols being whitelisted by regulators.
DeFi market overview
Data from Cointelegraph Markets Pro and TradingView exhibits that DeFi’s high 100 tokens by market capitalization had a bullish week, with most tokens buying and selling within the inexperienced on weekly charts. However, the entire worth locked into DeFi protocols dropped to $43.81 billion.
Thanks for studying our abstract of this week’s most impactful DeFi developments. Join us subsequent Friday for extra tales, insights and schooling relating to this dynamically advancing house.