Welcome to Finance Redefined, a weekly newsletter that provides you with essential decentralized finance (DeFi) insights and aims to bring you the most important developments of the past week.
A new DeFi report highlights that a large number of cryptocurrencies are being lost to exploitation due to traditional Web2 flaws and security issues, such as the centralization of information making it easier to exploit.
Decentralized exchange (DEX) platform Sushi will begin testing Bitcoin (BTC) swaps on 30 blockchains using interoperability platform ZetaChain.
Two founders of the Opyn DeFi protocol have resigned from their respective positions at the company and announced their intention to leave the cryptocurrency space following enforcement action against them by the U.S. Commodity Futures Trading Commission (CFTC).
The DeFi ecosystem continues to thrive, with most coins trading in the green on the weekly chart due to ongoing bullish market momentum.
46% of cryptocurrencies lost to vulnerabilities are due to traditional Web2 flaws — Immunefi
A new report from blockchain security platform Immunefi suggests that nearly half of all cryptocurrency losses due to Web3 vulnerabilities are due to Web2 security issues such as private key leaks. The report, published on November 15, reviews the history of cryptocurrency vulnerabilities in 2022, dividing them into different types of vulnerabilities. It concluded that 46.48% of cryptocurrencies lost due to vulnerabilities in 2022 were not due to smart contract flaws, but due to “infrastructure flaws” or problems with the development company’s computer systems.
When considering the number of incidents rather than the value of cryptocurrency lost, Web2 vulnerabilities accounted for only a small portion of the total at 26.56%, although they are still the second largest category.
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Sushi begins testing native Bitcoin DeFi swaps using ZetaChain
DeFi platform Sushi has partnered with interoperability platform ZetaChain to explore the possibility of local Bitcoin exchange across 30 different blockchain networks for its users.
Sushi’s deployment of DEX on ZetaChain is said to enable BTC transactions without the need to span multiple blockchains, which the team describes as a “native, decentralized and permissionless approach.”
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Opyn DeFi protocol founder to leave cryptocurrency after CFTC crackdown
Zubin Koticha and Alexis Gauba, two founders of the Opyn DeFi protocol, will exit the project and “leave cryptocurrencies,” according to a statement Koticha posted on social media on November 14.
The statement comes about two months after Opyn settled an enforcement action against it by the U.S. Commodity Futures Trading Commission.
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Layer 2 network TVL reaches $13 billion, but challenges remain
The Ethereum layer 2 network reached a new milestone on November 10, with the total value locked (TVL) in its contracts reaching $13 billion, according to blockchain analytics platform L2Beat. Industry experts say the trend of greater interest in Layer 2 is likely to continue, although some challenges remain, particularly in terms of user experience and security.
According to L2Beat, there are 32 different networks eligible for Ethereum Layer 2, including Arbitrum One, Optimism, Base, Polygon zkEVM, Metis, and others. Before June 15, all these networks had less than $10 billion of cryptocurrency locked in contracts combined, and their total TVL has been declining since reaching a high of $11.8 billion in April.
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DeFi Market Overview
Data from Cointelegraph Markets Pro and TradingView shows that the top 100 DeFi tokens by market capitalization are bullish this week, with most tokens trading in the green on the weekly charts. The total value locked in DeFi protocols remains above $50 billion.
Thanks for reading our roundup of the week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education on this dynamic and growing field.
Svlook
