Weekly DeFi Roundup: Crypto Security Issues, Sushi's Bitcoin Swaps Testing, and Opyn Founders' Exit
Summary:
This article presents a weekly summary of significant developments in the decentralized finance (DeFi) sector. It discusses a recent report highlighting security issues leading to crypto losses, Sushi's plans for testing Bitcoin swaps across 30 blockchains, and the Opyn DeFi protocol founders' decision to quit the crypto industry following a regulatory crackdown. It also touches on the persistent bullish market momentum of the DeFi sector and Ethereum layer-2 networks reaching a new milestone. Finally, it emphasizes a significant finding that Web2 security flaws have been responsible for almost half of crypto losses.
Introducing Finance Redefined, the one-stop weekly dossier for all things related to decentralized finance (DeFi) — a thoughtfully assembled newsletter designed to summarize the week's noteworthy breakthroughs.
A recent DeFi study underscored the notable proportion of crypto lost due to conventional Web2 vulnerabilities and security lapses, such as centralized data, which paves the way for exploitation.
Sushi, the decentralized exchange (DEX) platform, is primed to kick off trial runs for Bitcoin (BTC) swaps across 30 blockchains via the interoperability platform ZetaChain.
Amidst enforcement action by the United States Commodity Futures Trading Commission (CFTC), the two co-founders of the Opyn DeFi protocol have decided to relinquish their roles in the company and expressed their plans to exit the world of cryptocurrency.
Thanks to a persistently bullish market momentum, the DeFi sector continues to bloom, with a majority of tokens maintaining a green streak in the weekly graphs.
Immunefi's new report reveals nearly half of all crypto lost to Web3 exploits can be attributed to Web2 security failures such as exposed private keys. The report, issued on Nov. 15, provides a recap of 2022's crypto exploits and their various categories of susceptibility. It established that 46.48% of the exploited crypto losses were the result of "infrastructural weaknesses" or problems related to the developer firm's computer systems, rather than smart contract failings.
Sushi has collaborated with ZetaChain in order to explore the prospects of native Bitcoin swaps for its clientele over 30 unique blockchain networks. By deploying its DEX on ZetaChain, Sushi is likely to facilitate BTC trading without wrapping, in a "native, decentralized and permissionless manner".
Zubin Koticha and Alexis Gauba, co-founders of the Opyn DeFi protocol, have opted to depart from the project and bid farewell to cryptocurrency, according to Koticha's social media post on Nov. 14. This decision followed approximately two months after Opyn's settlement in a CFTC enforcement action.
Despite reaching a new peak of $13 billion total value locked (TVL) in their contracts on Nov. 10, Ethereum layer-2 networks continue to face hurdles, particularly in user experience and safety. Among the 32 networks qualifying as an Ethereum layer 2 are Arbitrum One, Optimism, Base, Polygon zkEVM, Metis, and more. Before June 15, all these networks had less than $10 billion in cryptocurrency secured within their contracts.
The week witnessed a bullish trend among DeFi's top 100 tokens by market capitalization, with most tokens pushing the green trend, and over $50 billion value stayed locked into DeFi protocols.
That's it for this week's crucial DeFi updates. Join us again next Friday for more news, insights, and information on this rapidly evolving space.
Published At
11/17/2023 7:25:00 PM
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