DeFi Weekly: Cosmos Networks Merge, Platypus Hackers Walk Free, and KyberSwap to Compensate Users
Summary:
This week in decentralized finance (DeFi), Cosmos-based networks Umee and Osmosis merge to form a "DeFi Hub", a French court pardons the perpetrators of an $8.5 million exploit on DeFi protocol Platypus, and Velvet Capital's CEO discusses the barriers to DeFi adoption. Meanwhile, following a $48.8 million loss from an exploit, KyberSwap plans to set up a treasury-funded grant for affected users. Despite a slight market downturn, DeFi tokens remain bullish, with the total value locked exceeding $60 billion.
Finance Redefined presents you with a weekly rundown of the most critical happenings in the decentralized finance (DeFi) sector. Stay updated with our regular newsletter and discover the week's highlights. Velvet Capital's top official chats with Cointelegraph about the hurdles in DeFi's path to mainstream adoption. Meanwhile, 'DeFi Hub' emerges from the merger of Cosmos' Umee and Osmosis, combing the distinct features of both networks, as Platypus hacker's $8.5 million exploit is left unpunished. The total value tied up in top 100 DeFi tokens exceeds $60 billion, despite a slight market slowdown.
Umee and Osmosis from the Cosmos ecosystem are unifying via a software update, as revealed on December 4th. The joint venture, named 'DeFi Hub', integrates Umee's UX Chain framework onto Osmosis chain. Umee facilitates decentralized borrowing on the distinct Cosmos chain 'UX Chain', while Osmosis, another major decentralized exchange within the Cosmos ecosystem, operates on its exclusive network, which has amassed over $23 billion in total volume.
The French court has acquitted the two individuals behind the $8.5 million theft from the Platypus DeFi protocol, who claimed to be ethical hackers. The culprits exploited a flash loan attack on February 16th, leading to the suspension of trading services on Platypus. The prime suspect, Mohammed M., utilized a coding glitch to withdraw all assets through a non-collateral loan.
The intersection of DeFi and asset management indicates a significant financial shift. DeFi's decentralized and transparent structure is an attractive alternative to conventional financial models. It carries the potential to transform asset management, yielding better returns for investors and promoting broader access to investment opportunities for both institutions and individuals.
KyberSwap plans to financially back its users impacted by the significant exploit on November 22nd that led to a $48.8 million loss for the DeFi protocol. To this end, KyberSwap is setting up a treasury-based grant scheme to expiate those affected by the incident. This initiative testifies to KyberSwap’s commitment to its user base and platform security.
Statistics from Cointelegraph Markets Pro and TradingView illustrate the continued strength of the DeFi tokens, with the top 100 by market cap showing a bullish trend. The total value locked in DeFi protocols still stands over $60 billion. Join us again next Friday for your weekly digest of the most significant advancements in the rapidly evolving DeFi landscape.
Published At
12/9/2023 10:10:00 AM
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