DeFi Exploits Soar in September, Yield Protocol Shutting Down, and DAO's Potential for Scientists: Finance Redefined
Summary:
This edition of Finance Redefined discusses prominent crypto developments such as September's DeFi exploits exceeding $300 million, Yield Protocol's plan to shut operations by December, and Polygon co-founder's step-down from daily roles. It highlights DAO's potential to aid underfunded scientific fields, introduces Wirex's new ZK-proof-based crypto debit card service, and provides a DeFi market overview.
Finance Redefined is here, your go-to guide for vital information on the decentralized finance landscape, curated to deliver prominent developments of the previous week. In our latest newsletter, it's reported that September saw the highest rate of cryptocurrency crises in DeFi, exceeding $300 million in losses. Moreover, Yield, a well-known DeFi lending protocol, announced that it would ceasing operations completely in December. Meanwhile, Polygon's co-founder, Jaynti Kanani, has relinquished his everyday duties in the company, opting to keep an eye on things from afar. A leading scientific journal also points out that decentralized autonomous organizations (DAOs) could aid scientists with sourcing funding and community building. Price actions in the DeFi market have given mixed signals this week, with most top 100 tokens plateauing at roughly the same value as the previous week.
CertiK, a blockchain security company, labeled September as the harshest month in 2023 for crypto-related crises, with a staggering $329.8 million in cryptocurrency theft. Much of this colossal figure was due to the Mixin Network attack on September 23rd, where the cross-chain transfer protocol based in Hong Kong lost $200 million due to their cloud service provider’s breach.
The Yield Protocol revealed its intention to close down before the year-end because of inadequate commercial demand and increasing global regulatory restrictions. Post December 2023, the Yield Protocol will disappear once its series concludes, which is scheduled for December 29. The Yield Protocol confirmed in its detailed announcement on ceasing operations that the launch for the fixed-rate series in March 2024 has been called off.
Jayant Kanani, Polygon's co-founder, announced his retirement from regular project duties, first such hiatus in six years. In an October 4 X (previously Twitter) thread, Kanani unveiled that while he pursues new adventures, he will be contributing to Polygon in a more passive manner. The Matic network, later rebranded to Polygon, was co-founded by software engineers including Kanani, along with Sandeep Nailwal, Anurag Arjun, and Mihailo Bjelic in 2017.
According to the Nature science journal, DAOs provide a cutting-edge way for researchers in underfunded scientific sectors to find fundraising and support. With a DAO powered research platform, project governance, capital raising, evaluation and transitioning from discovery to product or industry can all be managed through the same decentralized governing body.
Cryptocurrency payment service provider, Wirex, introduced W-Pay, a zero-knowledge proof (ZK-proof)-based noncustodial crypto debit card service, on October 3. Wirex's innovative decentralized approach harnesses zero-knowledge technology, built on Polygon's Chain Development Kit, providing enhanced scalability and security. Polygon's CDK specifically highlights ZK-proofs, allowing companies and users to build their own ZK-powered layer-2 rail.
In terms of the DeFi market, data from Cointelegraph Markets Pro and TradingView indicate a slight retraction from the previous week for the top 100 tokens by market capitalization, though most tokens showed positive trading on weekly charts. The overall value sealed in DeFi protocols dwindled to $45.07 billion.
Thanks for staying updated with our recap of the week's major DeFi developments. Join us again next Friday for more insights, stories, and understanding of this rapidly progressing industry.
Published At
10/6/2023 7:00:00 PM
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