Welcome to Finance Redefined, your weekly DeFi Insights – a newsletter designed to bring you the most significant developments of the past week.
Decentralized applications, or DApps, finally showed a glimmer of recovery in August with the daily average of unique active wallets growing by 3.7% compared to May.
With less than a week to go before the merger, SEBA Bank has opened its Ethereum share service to institutions. On the other hand, Tier-2 emission solutions hope to see significant reductions in their carbon emissions after integration.
Last week, two DeFi protocols fell victim to coordinated credit attacks. On Wednesday, Avalanche-based lending protocol Nereus Financial was the victim of a malicious hack that led to a user withdrawing $371,000 worth of US dollars (USDC) using a smart contract exploit. The next day, Thursday, New Free DAO, a non-vulnerable token (NFT)-based project, lost about $1.25 million in another similar flash loan attack.
The top-100 DeFi tokens by market cap finally saw a week of green after nearly two weeks of dominant price action. Most tokens recorded double-digit gains, with Luna Classic (LUNC) – formerly Terra (LUNA) – breaking into the top 30 with gains of over 100% over the past seven days.
DApp activity increased 3.7% in August for the first time since May: Report
Dapradar showed a modest recovery for the first time since May, with daily unique active wallets (UAWs) increasing 3.7% month-on-month, according to a report from Dapradar.
The increase was partially driven by the Flow protocol, which saw a 577% UAW increase in Instagram NFTs and support for the Solitaire Blitz game. On the other hand, the Solana UAW was down 53% in August from the previous month, with transactions down 68%, the findings show.
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SEBA Bank to provide Ethereum stock services to institutions
As the Ethereum network transitions from a Proof of Work (PoW) to a Proof of Stake (PoS) agreement, the digital asset platform has launched a service for institutions to dive into Ether (ETH) staking.
In an announcement sent to Cointelegraph, Swiss digital asset banking platform SEBA Bank has announced the launch of an Ethereum stock service for institutions looking to leverage the Ethereum network. According to the organization, the move is in response to growing institutional demand. For DeFi services.
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Borrowing Degens to get fork tokens creates a headache for DeFi platforms
The growing number of speculators borrowing Ether to increase their ability to earn forked Ether proof-of-work tokens (ETHPoW) is creating a headache for DeFi protocols.
The issue has been getting a lot of attention in the past month or so, as a large number of ether miners are expected to proceed with the long-awaited merger of the Ford Pow chain, or perhaps even more chains.
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The Avalanche Flash Loan exploit saw $371K in USD stolen.
Avalanche-based lending protocol Neres Finance has fallen victim to a malicious hack that saw one user withdraw $371,000 worth of US dollars using a smart contract exploit.
Blockchain cybersecurity firm Certike was one of the first to discover the exploit on Tuesday, revealing that the attack affected liquidity pools on Nereus for decentralized exchange (DEX) Trader Joe’s and automated market maker Curve Finance.
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DeFi protocol token NFD has fallen by 99% after the flash credit attack
New Free DAO, the DeFi protocol, suffered a series of flash credit attacks on Thursday, resulting in a loss of $1.25 million. As a result of the attack, the value of the initial token dropped by 99%.
Unlike regular loans, several DeFi protocols offer flash loans that allow users to borrow large amounts of assets without an upfront deposit. The only condition is that the loan must be repaid in one transaction within a certain period of time. However, this feature is often exploited by malicious adversaries to harvest large amounts of assets targeting tarDeFi protocols.
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Overview of the DeFi market
Analytical data shows that Defy’s total price is locked in, little changed from last week. TVL’s value was around $61.02 billion at the time of writing. According to data from Cointelegraph Markets Pro and TradingView, DeFi’s top 100 tokens by market capitalization had a strong week with most tokens seeing double-digit gains, while a few others continued to trade in the red.
LUNC was the biggest weekly gainer, posting a 101% gain over the past 7 days, followed by Chainlink (LINK) with a 14.8% gain. Compound (COMP) gained 7.71% and PancakeSwap (CAKE) posted a gain of 6.24% on the weekly charts.
Thanks for reading this week’s roundup of the most impactful DeFi developments. Join us next Friday for more stories, insights and lessons.