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The decentralized finance (DeFi) sector continues to attract increasing attention from crypto investors. ForkLog has gathered the most important events and news of the last weeks into a
The decentralized finance (DeFi) sector continues to attract increasing attention from crypto investors. ForkLog has gathered the most important events and news of the last weeks into a summary.
The amount of blocked funds (TVL) in DeFi protocols decreased to $ 106.3 billion, while MakerDAO was the leader with $ 9.45 billion, while Curve ($ 8.67 billion) and AAVE ($ 8.23 billion) took the second and third places, respectively.
TVL has dropped to $68.2 billion in Ethereum applications. In the last 30 days, the indicator has dropped by 38% (value was $110 billion on May 4).
The decentralized exchange (DEX) trading volume over the past 30 days was $98.1 billion.
Uniswap continues to dominate the non-custodial foreign exchange market, which accounts for 74.7% of the total turnover. In terms of trading volume, the second is the DEX Curve (11.3%), the third is the Stabilizer.
In May, the TVL of the Tron-based dapp ecosystem grew more than 48%, surpassing $6 billion.
In the overall DeFi Llama ranking, the project ranks second after Ethereum and BNB Chain with $68.24 billion and $8.41 billion, respectively.
The performance of the other top 10 ecosystems dropped significantly. For example, Avalanche lost 52.9% while Solana lost 42.7%.
Terra-backed DeFi protocol Mirror has been the victim of an exploit worth over $90 million. It was discovered by an analyst at FatMan and verified by cybersecurity firm BlockSec.
To short a synthetic stock on the Mirror Protocol, you must freeze the collateral (UST, LUNA Classic and mAssets) for at least 14 days. Tokens can be withdrawn to the wallet after the transaction is complete.
The identifier generated by the smart contract was used to identify the owner of the assets. Due to the vulnerability, the protocol was unable to prevent multiple withdrawals by the same user. In October 2021, it was discovered by an unknown person who caused a total of $90 million in damage, hundreds of times the size of the security he blocked.
BlockSec explained that this is only now known, as the Mirror website does not show data on the amount of collateral deposited by users. Another factor was the lack of community interest in data analysis on the Terra blockchain compared to Ethereum. EVMcompatible networks
In May, a few days after Terra’s crash, the Mirror Protocol developers patched the exploit. On the community forum, the team left unanswered if someone had exploited this vulnerability.
At the end of the month, an unknown person withdrew another $2 million from Mirror as a result of issues with displaying quotes by oracles. This vulnerability was discovered by a member of the Mirroruser community and confirmed by FatMan.
Most of the validators on the Terra Classic network used an older version of oracle. Second, it provided the system with data on the cost of LUNA Classic (LUNC) at a rate of 5 USTC (~$0.12), while the actual price did not exceed $0.0001. As a result, the attacker drained several liquidity pools (mBTC, mETH, mDOT and mGLXY).
The analyst warned that a hacker could do the same to mAsset pools, leading to bad debt accumulation and protocol crashing. Access to them is suspended until the start of the pre-trading session on the shares.
The situation was “saved” with the May 30 celebration on the weekend and United States Memorial Day, when the stock market was closed.
The developers listened to the expert’s advice. They disabled the use of mBTC, METH, galaxy and mDOT as collateral, preventing a “disaster”. As a result, the attacker lost the ability to drain liquidity pools.
Uniswap has traded the equivalent of over $1 trillion since the launch of the DEX in 2018.
According to Uniswap Labs, behind the project, the number of users of the protocol has approached 3.9 million – more than 80% of all participants in the DeFi space.
According to CoinGecko, Uniswap’s share (including all versions) is 42.5%, given the DEX trading volume across all networks. The closest competitor on BNB Chain, PancakeSwap, has 8.3%.
The Monetary Authority of Singapore will explore the possibilities of DeFi protocols and tokenization. JPMorgan, Marketnote and DBS will also be involved in the Guardian project.
Financial institutions will work on user cases in four main areas:
The first pilot project provides for the creation of a permitted liquidity pool. It will consist of tokenized shares and deposits used to provide secured loans through smart contracts.
“These early work on DeFi solutions will ensure Singapore’s competitiveness as an advanced financial hub,” said Han Kwee Huan, Head of Strategic Planning at DBS.
Platform for second-level Ethereum solutions (L2) Polygon has launched a new acceleration program for developers in the decentralized finance space.
The initiative was implemented in collaboration with Orbs, a third-level (L3) blockchain infrastructure provider based on the DeFi.org accelerator.
The program is focused on projects that use the partners’ core technologies.
“Focusing on L2 and L3 DeFi applications is the next step for creators who are passionate about developing on Ethereum,” the statement said.
Program participants will produce Polygon-based solutions. They will receive support in the form of financing, mentoring and marketing assistance. DeFi.org will provide liquidity for promising projects as well as publicity through its website and other platforms.
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Source: Fork Log
I’m Sandra Torres, a passionate journalist and content creator. My specialty lies in covering the latest gadgets, trends and tech news for Div Bracket. With over 5 years of experience as a professional writer, I have built up an impressive portfolio of published works that showcase my expertise in this field.
