Welcome to Finance Redefined, your weekly dose of important decentralized finance (DeFi) insights — a publication crafted to carry you vital developments over the past week.
After the Mango Markets exploit final week, Compound protocol paused the provision of 4 tokens as lending collateral to guard it towards any worth manipulation.
Crypto staking protocol Freeway stated certainly one of its buying and selling methods “seems to have failed,” forcing the agency to halt companies earlier this week. October continues to be dominated by DeFi hacks as one other DeFi lockup protocol, Crew Finance, misplaced $14.5 million throughout contract migration, regardless of an audit clearance.
MakerDAO group voted to approve the custody of $1.6 billion USD Coin (USDC) with the institutional brokerage platform Coinbase Prime.
The highest 100 DeFi tokens confirmed bullish momentum after almost three weeks of worth efficiency dominated by the bears. Majority of the tokens traded within the inexperienced on the weekly charts, with a number of of them seeing double-digit positive aspects.
After Mango Markets exploit, Compound pauses 4 tokens to guard towards worth manipulation
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Decentralized lending protocol Compound has paused the provision of 4 tokens as lending collateral on its platform, aiming to guard customers towards potential assaults involving worth manipulation, just like the current $117 million exploit of Mango Markets, based on a proposal on Compound’s governance discussion board that was not too long ago handed.
With the pause, customers will be unable to deposit Yearn.finance’s YFI (YFI), 0x’s ZRX, Fundamental Consideration Token (BAT) and Maker’s MKR (MKR) as collateral to take loans.
Freeway’s withdrawal halt blamed on ‘failed’ buying and selling technique
Crypto staking platform Freeway pointed on the failure of certainly one of its cryptocurrency buying and selling methods, together with market circumstances, because the main purpose for halting consumer withdrawals earlier this week.
The crypto yield platform on Oct. 23 introduced it was halting numerous transactions referring to its high-yield Supercharger product, citing “unprecedented volatility” on the time, with out giving any extra particulars on the time, which noticed its token worth plummet.
Crew Finance exploited for $14.5M throughout protocol migration regardless of contract audit
DeFi lockup protocol Crew Finance stated that over $14.5 million price of tokens have been exploited by means of the Uniswap v2 to v3 migration operate on its platform. As instructed by blockchain safety agency PeckShield, the hacker transferred liquidity from Uniswap v2 property on Crew Finance to an attacker-controlled v3 pair with skewed pricing. By locking tokens to the contract, the attacker bypassed present validation mechanisms and pocketed the massive leftovers as a refund for revenue.
Uniswap v3 was designed with higher effectivity for liquidity suppliers (LP) than v2 on its decentralized trade. Nevertheless, v2 sensible contracts are nonetheless operational, and customers should work together with a migration sensible contract emigrate their LP property from v2 to v3. PeckShield estimated that the preliminary assault vector required for this interplay prices simply 1.76 Ether (ETH).
MakerDAO group votes to approve custody of $1.6B in USDC with Coinbase
Coinbase Prime, an institutional prime brokerage platform for crypto property, introduced on Oct. 24 that it has entered right into a partnership with MakerDAO to turn out to be a custodian of $1.6 billion price of the stablecoin USDC, of which MakerDAO is the biggest single holder.
The MakerDAO group voted to approve the custodianship, which can enable its group to earn a 1.5% reward on its USDC whereas holding funds with a number one institutional custodian.
DeFi market overview
Analytical knowledge reveals that DeFi’s complete worth registered a surge towards the top of October, with the overall worth locked (TVL) rising above $50 billion on the time of writing. Knowledge from Cointelegraph Markets Professional and TradingView present that DeFi’s high 100 tokens by market capitalization had a bullish week, with the vast majority of the tokens buying and selling within the inexperienced on the 7-day chart, barring just a few.
Theta Community (THETA) was the most important gainer over the previous week, registering a weekly surge of 14.68%, adopted by Avalance (AVAX) with a 12.85% surge on the 7-day chart. Many different DeFi tokens registered single-digit weekly positive aspects, barring just a few that traded within the crimson.
Thanks for studying our abstract of this week’s most impactful DeFi developments. Be part of us subsequent Friday for extra tales, insights and schooling on this dynamically advancing area.
The journalist is a writer and digital nomad. Loves thinking, learning, and writing about all things Web3, particularly its impact on major creative industries.