European Regulators Mull Risks and Rewards of DeFi: Week's Key Developments
Summary:
This week's Finance Redefined covers major developments in the DeFi sector. The European Securities and Markets Authority published a report on DeFi's risks and benefits. Uniswap launched an Android wallet beta on Google Play. Star Arena recovered most of the stolen Avalanche tokens after setting up a bounty, while Platypus Finance was targeted by another flash loan attack. Price actions of the top 100 DeFi tokens were mixed with the total value locked in DeFi reaching $45.67 billion. Lido Finance also reported 20 slashing events due to validator configuration issues.
Finance Redefined, your one-stop destination for the most substantial updates in the decentralized finance (DeFi) world from the last week, brings you another edition. In this week's news, a report exploring the potential risks and rewards of DeFi has been released by European securities regulators. Meanwhile, Uniswap has tested the waters of the Android market with a wallet beta now live on Google Play. The DeFi platform Star Arena recovered a significant portion of pilfered Avalanche (AVAX) tokens by offering a generous bounty, while Platypus Finance was victimized by yet another flash loan attack. As for the top 100 DeFi tokens, their performance this week has been a mixed bag, with prices stagnating or slightly increasing from their previous week's levels. DeFi protocols experienced a milestone as the total value locked within their ecosystems reached $45.67 billion.
The European Securities and Markets Authority (ESMA), the European Union's financial market overseer, published a comprehensive analysis of decentralized finance and its potential implications for the EU's financial landscape on October 11th. The authoritative 22-page document accepts the prospective advantages that DeFi could introduce, including increased financial inclusion, the creation of modern financial products, and the boosting of the pace, safety, and cost-effectiveness of financial transactions.
Decentralized cryptocurrency exchange Uniswap introduced a closed beta variant of its mobile application for Android on October 12th, according to an announcement from the app's creators. Prior to this launch, Uniswap was only accessible on PC and iOS mobile devices. This pioneering Android beta app enables users to pick coins across diverse chains without needing to switch networks manually. In addition to supporting Polygon, Arbitrum, Optimism, Base, and BNB Chain at present, the app is set to accommodate more chains in the future.
The Web3 social network, Stars Arena, has successfully reclaimed almost all the crypto pilfered in an exploit that transpired on October 7th. The recoverable amount was subject to a deduction of a 10% bounty reward extended to the offender. As per a post on October 11th on X (formerly known as Twitter), Stars Arena managed to recuperate approximately 90% of the misappropriated 266,000 AVAX, which was valued around $3 million. They secured this victory through an agreement where they offered a bounty of 27,610 AVAX, equivalent to nearly $257,000, as well as recompense for an additional 1,000 AVAX, valued at just over $9,000, that the exploiter seemingly lost during the offense.
The DeFi protocol, Platypus, suffered a financial blow after falling prey to another flash loan exploit, leading to a loss of over $2 million in assets. To counter the attack, the platform promptly suspended all its pools. The blockchain security firm, CertiK, recorded the protocol fell victim to three attacks amounting to a total loss of $2.23 million. The first attack unfolded on October 12th, draining $1.2 million from the platform. Subsequent strikes happened mere hours later when assets worth $575,000 were siphoned off, followed by an immediate third attack leading to a loss of a further $450,000.
Ethereum staking protocol, Lido Finance, acknowledged its protocol experienced 20 slashing incidents due to a sequence of setup and signer issues with the validators managed by Launchnodes. These events took place on October 11th, around 3:30 pm UTC, Launchnodes reports. Later that day, Lido shared on X that the validators nodes managed by Launchnodes were taken offline, thus halting the slashing while they investigated the root cause of the glitches.
Data from Cointelegraph Markets Pro and TradingView illustrates a diversified performance amongst DeFi's top 100 tokens. The total value invested in DeFi protocols declined to $45.67 billion.
Thank you for joining us for another edition of the most influential DeFi news. Look forward to the next Friday for more enlightening stories and insights from this dynamically evolving space.
Published At
10/13/2023 7:25:00 PM
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