Welcome to Finance Redefined, your weekly dose of important information about decentralized finance (DeFi) – a newsletter created to inform you about significant developments over the past week.
The Chief Scientist of Chainalysis shared his take on the Tornado Cash saga and said that the incident left a void for illegal fund-mixing services, but the real impact of the sanctions could be determined in the long term.
The Ethereum post Merge staking ecosystem could have a significant impact on the crypto economy, according to a new report. Institutional lending platform Mapple Finance has launched a $300 million loan pool for bitcoin mining farms.
Tribe DAO, a decentralized autonomous organization, has voted to pay affected users an $80 million exploit in Rari Capital’s DeFi platform liquidity pools. The BNB network has launched a new community-led security initiative called the Avenger DAO.
The top 100 DeFi tokens by market capitalization have had a mixed week in terms of price action, with many tokens trading in the red and some others posting weekly gains.
Tornado Cash left a void, time will tell what will fill it – Chainalysis Chief Scientist
Sanctions on cryptocurrency mixer Tornado Cash have left a vacuum for illegal funds mixing services, but more time is needed before we know the full implications, according to Chainalysis chief scientist.
During a demonstration of the newly launched blockchain analysis platform Chainalysis Storyline, asked Chainalysis Chief Scientist Jacob Illum and Australia and New Zealand Regional Manager Todd Lenfield about the impact of the Tornado Cash ban.
Tribe DAO Vote to Pay Rari Hack Victims $80 Million Compensation
After months of uncertainty, the Tribe DAO held a vote to reimburse affected users for an $80 million exploit in Rari Capital’s DeFi platform liquidity pools.
After several rounds of voting and governance proposals, the Tribe DAO, which includes Midas Capital, Rari Capital, Fei Protocol and Volt Protocol, has decided to hold a vote on Sunday with the intention of fully refunding the victims of the hack.
Staking Providers May Expand Institutional Presence in Crypto Space: Report
The carbon footprint of the Ethereum blockchain is expected to shrink by 99% following last week’s Merge event. By positioning staking as a service for retail and institutional investors, the upgrade could also have a significant impact on the crypto economy, according to a Bitwise report published on Tuesday.
The company said it predicts a potential return of 4-8% for long-term investors through ether (ETH) staking, while JP Morgan analysts predict that staking yields through PoS blockchains could double to $40 billion by 2025.
Maple Finance Launches $300M Lending Pool for Bitcoin Mining Companies
On September 20, institutional crypto-lending protocol Maple Finance and its spokesperson Icebreaker Finance announced that they will provide secured debt financing of up to $300 million to public and private bitcoin mining companies. Qualified organizations that meet financial management standards and energy management strategies located throughout North America as well as Australia are eligible to apply for funding.
On the other hand, the company seeks to provide a risk-adjusted income at a low percentage for teenagers (up to 13% per year) for investors and capital allocators. The pool is only open to accredited investors who meet the criteria for significant income and/or net worth within the jurisdiction.
BNB Chain Launches New Community Security Mechanism to Protect Users
BNB Chain, Binance’s own blockchain, has launched AvengerDAO, a new community-driven security initiative to help protect users from fraud, intruders, and possible exploits.
The security-focused DAO was developed in collaboration with leading security firms and popular crypto projects such as Certik, TrustWallet, PancakeSwap, and Opera, just to name a few.
DeFi Market Overview
Analyst data shows that the total value of DeFi locked down is marginally lower compared to last week. At the time of writing, TVL is worth about $50.64 billion. Data from Markets Pro and TradingView shows that the top 100 DeFi tokens by market capitalization had a mixed week, with many tokens recovering towards the end of the week and some others trading in the red on the weekly charts.
Compound (COMP) posted the biggest gain, posting a 15% gain over the past seven days, followed by PancakeSwap (CAKE) with an 8.8% gain. The Theta Network (THETA) was another token in the top 100, posting a 5% weekly gain.
Thank you for reading our roundup of the most important DeFi events this week. Join us next Friday for more stories, insights and knowledge in this dynamic space.