Solana-based Bot Nets $1.7M in Single DeFi Trade as Near Foundation Cuts Jobs amidst Bullish Market
Summary:
This week's decentralized finance (DeFi) developments feature a Solana-based maximum extractable value bot making a $1.7 million profit from a single trade, Near Foundation laying off 40% of its workforce despite showing healthy financials, and the US Commodity Futures Trading Commission engaging with the DeFi sector to mitigate potential risks. Amid these events, the sector saw a bullish week, with the total value locked in DeFi protocols crossing the $65 billion mark.
Introducing your go-to weekly rundown on decentralized finance (DeFi), Finance Redefined — your indispensable guide to the most noteworthy occurrences of the past week. In top stories this week, a Solana-based maximum extractable value (MEV) bot hit the headlines, making a staggering $1.7 million profit from a single transaction. Amid healthy financial figures, the Near Foundation chose to let go nearly half of its personnel, while the US Commodity Futures Trading Commission (CFTC) is engaging with DeFi entities to address potential risk scenarios. Catch up with these and more in this week’s DeFi newsletter.
In a bull market week, approval of the first-ever Bitcoin (BTC) exchange-traded fund (ETF) in the US gave a strong boost to the top 100 DeFi tokens. The total value tied up in DeFi protocols crossed the $65 billion threshold.
A Solana-based bot overseen by 2fast, used for maximizing extractable value, extracted a whopping $1.7 million from one dubious trade, wherein a trader bought memecoin Dogwifhat (WIF) worth $9 million “in the least effective manner imaginable.” Data from Solscan reveals the bot switched 703 Solana (SOL) for 490,000 WIF, and within the same transaction pack, converted the same quantity of WIF back to 19,035 SOL, scooping a $1.73 million profit.
Near Foundation, the creator of the eponymous layer-1 protocol, declared a 40% personnel reduction "to streamline the central Foundation team for a more targeted and impactful set of tasks.” The dismissal of 35 Near personnel, working in marketing, business development, and community initiatives, was necessitated by feedback indicating that the foundation “has been underperforming and attempting too many tasks simultaneously.”
As per a Jan. 11 report by blockchain analytics tool DappRadar, 2023 saw a 124% rise in the number of unique active wallets (UAWs) engaging with Web3 applications. Near, Klaytn, and Arbitrum recorded the most growth, with Harmony, Solana, and Hive seeing a fall in users.
The CFTC has released a report shedding light on advisable steps for lawmakers and industry stakeholders to tackle DeFi-related risks. The institution’s Digital Assets and Blockchain Technology Subcommittee identifies promising opportunities in DeFi within its report, while also noting substantial and multifaceted risks this poses to the US financial insecurity, individual consumers, and national security.
The most recent data procured from Cointelegraph Markets Pro and TradingView reflect a bullish week for the top 100 DeFi tokens by market capitalization, with a majority trading in the green over the week. Cumulative value locked into DeFi protocols topped $65 billion, following weeks of positive price momentum.
Thank you for catching up with our round-up of this week's most influential DeFi events. Be sure to join us next Friday for more engaging narratives, key insights, and informative content about this rapidly transforming sector.
Published At
1/12/2024 10:23:00 PM
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