Decentralized Finance Weekly: Uniswap $650B HayCoin Burn, DeFi Projects Audit Lapse, and Polygon's New Token
Summary:
This week's update from the world of decentralized finance (DeFi) features bullish resurgences in multiple projects, only surpassed by Uniswap founder's $650 billion HayCoin (HAY) burn. A report emphasized that most DeFi projects didn't undergo audits while experiencing a 'rug-pull' in Q3. The prime DeFi protocol in Solana ended its UK operations in response to the Financial Conduct Authority's strict regulations. Other developments include Polygon Labs launching its Ethereum contract for the new Polygon token (POL).
Welcome to Finance Redefined, your one-stop destination for crucial insights into the world of decentralized finance (DeFi) updated every week. It's a meticulously curated newsletter designed to deliver the most noteworthy happenings from the preceding week. This week saw a bullish resurgence in countless DeFi projects, with a dramatic $650 billion burn of HayCoin (HAY), constituting 99% of its circulation by the founder of Uniswap, capturing significant attention. Other updates included an investigative report underlining that 85% of the DeFi projects that had experienced a 'rug-pull' in Q3 had not undergone an audit. Moreover, due to rigid regulations by the Financial Conduct Authority (FCA), the premier DeFi protocol on Solana has discontinued its operations in the UK. The leading 100 DeFi tokens underwent a bullish transition in the course of the week, displaying double-digit weekly increments for most of these tokens. The absence of audits was reported for 85% of crypto 'rug pulls' in Q3, as reported by Hacken. As per recent analysis, the majority of cryptocurrency 'rug pulls' exhibit clear and distinguishable characteristics, making them easily discernible. Hacken, the blockchain security auditor, published its up-to-the-minute security insights report on October 25, aimed at identifying Q3's crypto trends and drafting an evaluation of projects that had been affected. Following the enforcement of FCA's rule, Marinade Finance, the dominant DeFi protocol on Solana's blockchain, has halted its services for its British users. As of October 23, UK users were unable to access Marinade's website via local IP addresses. Marinade Finance boasts of 75,000 users and a value locked-in exceeding $265 million at the time of compiling this report, constituting 70% of the total funds locked on Solana. Uniswap founder Hayden Adams performed a burn of 99% of HayCoin's supply on October 20, in response to speculation over its pricing in the past days. Initially, the HAY token was utilized for testing purposes by Adams, prior to the launch of Uniswap. After the introduction of a small liquidity pool for testing and the retention over 99.9% of HAY tokens in his wallet, the token experienced trading patterns resembling those of meme coins. Polygon Labs unveiled the Ethereum contract for the newly-conceived Polygon token (POL) on October 25. The token is set to replace Polygon's token (MATIC). The contract denotes that there's currently no requirement for users to swap their MATIC for POL. According to the blockchain data, the new token was prevalent from October 25 at 9:06 am UTC, known as the "Polygon Ecosystem Token". The introduction of the POL token promises to bolster a spectrum of Layer 2 chains by implementing a re-staking protocol, enabling token holders to stake on multiple chains thereby carrying out numerous functions. The DeFi market overview illustrates that the leading 100 tokens appreciated over the week with most tokens registering green in the weekly charts. A leap of nearly $6 billion was recorded in the total locked-in value across DeFi protocols reaching $49.16 billion. We appreciate your continued support and look forward to sharing more valuable DeFi updates and insights next Friday.
Published At
10/27/2023 7:20:00 PM
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