Welcome to Finance Redefined. This is a weekly newsletter that provides key insights on Decentralized Finance (DeFi) and was created to bring you the important developments of the past week.
After last week’s Mango Markets exploit, the Compound protocol suspended the supply of four tokens as loan collateral to protect against price manipulation.
Crypto staking protocol Freeway was forced to shut down services earlier this week after saying one of its trading strategies “seemed to have failed.” October continues to be dominated by DeFi hacking, with another of his DeFi lockup protocols, Team Finance, losing $14.5 million during contract transitions despite audit clearance.
The MakerDAO community voted to approve the custody of $1.6 billion in USD Coin (USDC) by Coinbase Prime, an institutional brokerage platform.
The top 100 DeFi tokens have shown bullish momentum after nearly three weeks of bear market dominance. Most of the tokens trade in green on the weekly chart, and some of them are making double-digit profits.
After Mango Markets exploit, Compound suspends four tokens to protect against price manipulation
Compound, a decentralized lending protocol, aims to protect users from potential attacks, including price manipulation, similar to the recent Mango Markets $117 million exploit, by placing collateral on loans on its platform. has suspended the supply of four tokens as I passed recently.
The suspension will prevent users from depositing Yearn.finance’s YFI (YFI), 0x’s ZRX, Basic Attention Token (BAT), and Maker’s MKR (MKR) as collateral for loans.
keep reading
Freeway’s withdrawal suspension blamed on ‘failed’ trading strategy
Crypto staking platform Freeway pointed to one of its crypto trading strategies and unsuccessful market conditions as the main reason for suspending user withdrawals earlier this week.
On October 23, the crypto yield platform announced that it would suspend various transactions related to high-yield supercharger products, citing “unprecedented volatility” at the time.
keep reading
Team Finance exploited $14.5 million during protocol transition despite contract audit
DeFi Lockup Protocol’s Team Finance said more than $14.5 million worth of tokens were misused through the Uniswap v2 to v3 migration feature on its platform. According to blockchain security firm PeckShield, a hacker has transferred liquidity from his Uniswap v2 assets in Team Finance to an attacker-controlled v3 pair, distorting the price. By locking tokens into contracts, attackers circumvented existing validation mechanisms and pocketed huge leftovers as profit refunds.
Uniswap v3 is designed to be more efficient for Liquidity Providers (LPs) than v2 on decentralized exchanges. However, the v2 smart contract is still operational and users must operate the migration smart contract to migrate their LP assets from v2 to v3. PeckShield estimates that the initial attack vector cost for this interaction is only 1.76 Ethers (ETH).
keep reading
MakerDAO Community Vote To Approve Coinbase’s Storage Of $1.6 Billion In USDC
Coinbase Prime, an institutional prime brokerage platform for crypto assets, announced on October 24 that it has partnered with MakerDAO to become custodians of the $1.6 billion USD stablecoin USDC, the largest single One owner.
The MakerDAO community voted to approve custodianship. This allows that community to retain funds in major institutional custodians while earning his 1.5% reward in USDC.
keep reading
DeFi market overview
Analytical data shows DeFi’s total value skyrocketed towards the end of October, with total value locked (TVL) exceeding $50 billion at the time of writing. According to data from Cointelegraph Markets Pro and TradingView, his DeFi top 100 tokens by market cap have had a bullish week, with the majority of tokens trading green on his 7-day chart, with a few exceptions. increase.
Theta Network (THETA) posted its biggest gain in the past week, posting a one-week surge of 14.68%, followed by Avalance (AVAX) with a 12.85% surge on the 7-day chart. Many other DeFi tokens posted single-digit gains for the week, with the exception of a few that traded at a loss.
Thanks for reading this week’s overview of the most influential DeFi developments. Join us next Friday for more stories, insights and education in this dynamically advancing space.