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- 1 DeFi is an open financial market that is permissionless and it eliminates the fees that banks charge.
- 2 The money is secured in digital wallets and transfers of funds are easy.
DeFi has gained popularity because financial fund transfers are faster and cheaper. It provides privacy and permissionless transactions. This helps to create new financial primitives and alternate financial structures.
Recent headlines will give clues about the latest updates in the DeFi market. Some of the DeFi news that has recently surfaced are mentioned below.
Maker DAO Co-Founder Stated Use of Solana Codebase for Native chain
Rune Christensen, co-founder of MakerDAO, has submitted a proposal to build the upcoming native chain with Solana codebase. However, it has long-running ties with Ethereum.
In a post on social media X (formerly Twitter), Christensen stated that after research, they found that the Solana codebase should be considered as the basis for NewChain. He added that Solana is more promising with the technical aspects and it is highly efficient.
The co-founder also stated that there are many examples in the code of Solana that are changed and adapted to act as appchains. MakerDAO could also follow the process to develop NewChain.
Exploitation of $900K on Balancer Platform as DeFi Hacks Mount
Balancer, the DeFi protocol was exploited for nearly $900K. The company has confirmed the news on X (Twitter) on August 27th, 2023. The attacker has an Ethereum address which is revealed by blockchain security expert Meier Dolev.
The address perceives the two transfers of Dai stablecoin worth $636,812 and $257,527 respectively, which brings the balance to a total of $893,978.
It has warned the users on the social platform X (Twitter) to migrate to safe pools or withdraw. Nevertheless they believe funds in the mitigated pools are safe. The pools that could not be mitigated are labeled as risk.
Self-Imposed 22% Limit for Ethereum Liquid Staking Providers
The self-limit rule is imposed on Ethereum liquid staking providers. At least five of them are working to impose the self-limit rule. In this they promise not to own more than 22% of the Ethereum staking market. This move is seen to prove that the Ethereum network remains decentralized.
The staking providers that agreed to the self-limit include Rocket Pool, Stader Labs, Diva Staking, and StakeWise
Nearly $16 Million Crypto Lost to Hacks in August
The blockchain security firm Immunfi, $23.4 Million in crypto was lost to a combination of hacks and fraud which is a notable decrease as compared to $320.5 Million that was lost in July 2023. All the exploits were attacks on the decentralized finance (DeFi) protocols and not a single incident has affected the centralized finance entities.
The top loss includes the Exactly protocol hack on August 18 where $7.2 Million in users’ deposits was stolen through a malicious deposit contract. On August 25, Magnate Finance allegedly orchestrated a $6.5 Million exit scam with prominent zachXBT. It claimed that the Magnate Finance deployer address was linked to the scam.
dYdX Unlocks 6.25M Tokens Worth $14M for Community Treasury Rewards
dYdX, a decentralized exchange platform, unlocks $14.02 Million with its native DYDX tokens to be allocated to its community treasury and rewards for traders and liquidity providers.
On August 29, 2023, dYdX released 6.52 Million tokens representing 3.76% of the DYDX circulating supply. About $5.36 Million worth of tokens are allocated to the community treasury.
Summary
DeFi is the future of finance. It is a decentralized process that is accessible to anyone. The use of blockchain offers security, reduces risk, and cheaper and faster transactions without limitations. This collection of recent DeFi news keeps anyone updated with the ongoing changes in the field.
With a background in journalism, Ritika Sharma has worked with many reputed media firms focusing on general news such as politics and crime. She joined The Coin Republic as a reporter for crypto, and found a great passion for cryptocurrency, Web3, NFTs and other digital assets. She spends a lot of time researching and delving deeper into these concepts around the clock, and is a strong advocate for women in STEM.
