DeFi & L1L2 Weekly (29/03/2023)

Polygon follows Matter Labs in deploying ZK-EVM scaling solutions. MakerDAO votes to retain USDC as the primary reserve for DAI. Circle stablecoin USDC to launch on Cosmos.

Weekly DeFi Index

This week’s market cap, volume, and volatility indices were negative at -19.11%, -28.46%, and -4.57%, respectively.

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• Gnosis Builders, the ecosystem team behind Gnosis Chain, announced its latest integration with DeFi protocol Balancer. The integration will bring liquidity to Gnosis Chain and allow users to deploy funds using decentralised apps such as the Balancer App and DeFi yield booster Aura.

News Highlights

• On 25 March, Matter Labs opened its zkSync Era mainnet to the public, marking the first public launch of an EVM-compatible rollup secured by zero-knowledge proofs.
• Following its testnet launch in October, Layer-2 scaling solution Polygon launched the mainnet beta for its zkEVM product, with Vitalik Buterin initiating the first transaction.
• DAI stablecoin issuer MakerDAO voted to keep USDC as the main reserve currency for DAI.
• Circle announced that its stablecoin USDC will be launched on the Cosmos network.
• A Swiss non-profit organisation is bringing zero-knowledge proofs to Bitcoin.  It aims to scale the network by allowing users to verify the network’s state without downloading hundreds of megabytes of blockchain history or relying on a third party.
• Layer-1 blockchain Avalanche’s X and C chains saw a brief outage last week. On-chain data reveals that C-Chain (the contract chain) has recovered from an hour-long outage, while transactions transmitted across X-Chain (the exchange chain) experienced some delays. 
• As a precautionary measure, THORChain halted its network on 28 March as potential network vulnerabilities are being investigated.
• BNB Chain-based exchange Safemoon was compromised, which led to approximately US$8.9 million worth of digital assets being drained from its liquidity pool. Blockchain security firm Peckshield shared that a recent update may have introduced a ‘public burn bug’ that facilitated the hack.

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