Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) information – a newsletter put together to bring you the most important developments from the past week.
A new DeFi report has highlighted that a significant amount of cryptocurrency lost due to exploits was due to traditional Web2 flaws and security issues, such as the centralization of information, which makes it easier to exploit.
Decentralized exchange (DEX) platform Sushi is set to start testing bitcoin (btc) trades on 30 blockchains using the ZetaChain interoperability platform.
The two founders of the Opyn DeFi protocol have resigned from their respective positions at the company and announced their intention to leave cryptocurrencies after the United States Commodity Futures Trading Commission (CFTC) took enforcement action against them.
The DeFi ecosystem continued to flourish thanks to the current bullish market momentum, with most tokens trading in the green on the weekly charts.
46% of cryptocurrencies lost due to exploits are due to traditional Web2 flaws – Immunefi
A new report from blockchain security platform Immunefi suggests that nearly half of all cryptocurrency lost to Web3 exploits is due to Web2 security issues, such as private key leaks. The report, published on November 15, analyzed the history of crypto exploits in 2022, classifying them into different types of vulnerabilities. It concluded that 46.48% of cryptocurrencies lost to exploits in 2022 were not due to smart contract failures, but rather “infrastructure weaknesses” or problems with the developing company’s computer systems.
When considering the number of incidents rather than the value of cryptocurrency lost, Web2 vulnerabilities represented a smaller portion of the total at 26.56%, although they were still the second largest category.
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Sushi Leverages ZetaChain to Start Testing Native bitcoin DeFi Exchanges
DeFi platform Sushi has partnered with interoperability platform ZetaChain to explore the possibility of native bitcoin exchanges for its users on 30 different blockchain networks.
Sushi’s deployment of its DEX on ZetaChain is touted to enable btc trading without spanning multiple blockchains in what the team describes as a “native, decentralized and permissionless way.”
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Opyn DeFi Protocol Founders Quit crypto After CFTC Crackdown
Zubin Koticha and Alexis Gauba, two founders of the Opyn DeFi protocol, are leaving the project and “leaving cryptocurrencies,” according to a statement from Koticha posted on social media on November 14.
The statement comes approximately two months after Opyn settled an enforcement action against it by the US CFTC.
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Layer 2 Networks Reach $13 Billion TVL, But Challenges Remain
ethereum‘s Layer 2 networks reached a new milestone on November 10, reaching $13 billion of total value locked (TVL) within its contracts, according to data from blockchain analytics platform L2Beat. According to industry experts, this trend of increased interest in Layer 2 is likely to continue, although some challenges remain, especially in user experience and security.
According to L2Beat, 32 different networks qualify as ethereum layer 2, including Arbitrum One, Optimism, Base, Polygon zkEVM, Metis, and others. Prior to June 15, all of these networks combined had less than $10 billion in cryptocurrency locked in their contracts, and their combined TVL had been declining from April’s high of $11.8 billion.
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DeFi Market Overview
Data from Cointelegraph Markets Pro and TradingView shows that the top 100 DeFi tokens by market capitalization had a bullish week, with most tokens trading in green on the weekly charts. The total value locked in DeFi protocols remained above $50 billion.
Thanks for reading our roundup of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights, and education about this dynamically advancing space.
