Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) information – a newsletter designed to bring you meaningful developments over the past week.
A total of 27 Ethereum projects came together to minimize the cost incurred by users in the form of maximum withdrawable value (MEV). Release partners include Balancer, Gnosis DAO, Shapeshift, and StakeDAO to name a few.
Rug pulls in the DeFi ecosystem are nothing new, but in Q1 2023, 73.3% of all rug pulls occurred on Binance’s BNB chain.
The DeFi ecosystem has become increasingly popular with North Korean hackers for money laundering, according to a new report from the US Treasury Department.
The Arbitrum Foundation has put forward a couple of new governance proposals following the fight that occurred in its first attempt. The two new proposals were then put to a community vote.
The top 100 DeFi tokens by market value have another mixed week in terms of price action with little change in the total value locked in DeFi protocols.
Ethereum projects unite to protect users from MEV-induced high prices
More than 27 prominent Ethereum projects came together to launch MEV Blocker, a solution that aims to address and minimize the amount of value extracted from its users, known as maximum extractable value, Ethereum’s invisible tax.
MEV is a transaction tax that is imposed on DeFi users. MEV bots can hijack mid-stream transactions such as Ether (ETH) swaps, non-fungible token (NFT) purchases, and Ethereum Name Service registrations, inflating prices for users.
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73.3% of Q1 carpet pulls occurred on BNB chain: Immunefi
BNB Chain was the king of rug pulls in Q1 2023, with more than 73.3% of such scams across the entire crypto ecosystem occurring on the network, according to an April 4 report from security firm BNB Chain. blockchain immune fi.
The report, titled “Crypto Losses in Q1 2023,” investigated a variety of crypto hacks and scams in the first quarter of the year. It found that Ethereum and the BNB Chain were the top two targets for hackers and scammers, accounting for 68.8% of the total losses from these networks combined. BNB Chain, in particular, accounted for 41.3% of the total losses from hacking and scams.
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North Korea and Criminals Are Using DeFi Services for Money Laundering: US Treasury
A new report from the US Treasury Department looking at decentralized finance found that actors in the Democratic People’s Republic of Korea and other fraudsters could exploit vulnerabilities to facilitate money laundering.
In its report “Illicit Finance Risk Assessment of Decentralized Finance” released on April 6, the US Treasury said that many groups involved in North Korean illicit activities benefited from the non-compliance of some DeFi platforms with certain anti-money laundering (AML) measures and the Financing of Terrorism (CFT) regulations. According to the report, insufficient AML/CFT controls and other shortcomings in DeFi services “enable the theft of funds.”
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Arbitrum raises new governance proposals after community furor
The Arbitrum Foundation has published a draft of new proposals for improvement after the altercation that occurred after its first failed attempt at governance.
The new proposals include AIP-1.1, which covers a smart contract lockdown schedule, spending, budgeting, and transparency. The other, AIP-1.2, addresses amendments to the current founding documents and lowers the threshold of the proposal from 5 million Arbitrum Tokens (ARBs) to 1 million ARBs “to make governance more accessible.”
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DeFi Market Overview
Analytical data reveals that the total DeFi market value surpassed $50 billion last week. Data from Cointelegraph Markets Pro and TradingView shows that the top 100 DeFi tokens by market cap had a bullish week, with most but a few tokens trading in the green.
Thanks for reading our roundup of this week’s most impactful DeFi developments. Join us next Friday for more stories, ideas, and education in this dynamic forward space.
