Welcome to Finance Redefined, your ultimate source for decentralized finance (DeFi) insights. In this weekly newsletter, we bring you the most significant developments from the past week, keeping you up to date with the latest in the world of DeFi.
One of the most noteworthy events this week was a trader’s exploit of the Multichain cross-chain bridge. This bridge had been frozen since its exploit in July 2023, but the trader managed to take advantage of a brief opening. In just a few hours, they were able to turn $280,000 worth of Fantom’s (FTM) tokens into an astounding $1.9 million worth of different assets. This exploit has led to suspicions of an insider job within the crypto community, sparking discussions and investigations into the matter.
In other news, Solana’s (SOL) token has experienced a significant surge of 80% in just one month. This rally was driven by the testnet launch of the blockchain’s highly anticipated scaling solution, Firedancer. SOL reached over $41 on November 2, hitting highs not seen since August 2022. This impressive performance has solidified Solana’s position as a valid contender against its rival, Ethereum (ETH), which only saw gains of under 11% in the same period.
Avalanche, on the other hand, faced controversy as it announced the shutdown of its Etherscan-powered blockchain explorer tool, SnowTrace. The decision was made due to concerns over Etherscan’s service fees for its explorer-as-a-service (EaaS) toolkit. While some details surrounding the shutdown remain unclear, it is evident that the issue of fees has sparked a debate within the community.
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Additionally, LayerZero’s new bridged token, wstETH, has faced criticism from nine protocols in the Ethereum ecosystem. These protocols claim that the token’s standard is a “vendor-locked proprietary standard,” limiting the freedom of token issuers. They argue for the use of the xERC-20 token standard for bridging stETH instead of LayerZero’s new token, emphasizing the potential systemic risks posed by the proprietary standard.
In the DeFi market overall, the top 100 tokens have continued their bullish momentum from the previous week. Most of these tokens have posted positive returns on the weekly charts. The total value locked into DeFi protocols has also seen a significant increase, reaching a total of $49.46 billion.
Thank you for reading this summary of the week’s most impactful DeFi developments. We strive to provide you with the latest stories, insights, and education about this rapidly evolving space. Be sure to join us next Friday for more exciting updates in the world of DeFi.
