DeFi & L1L2 Weekly (14/12/2022)

Ethereum’s Shanghai upgrade tentatively scheduled for Mar 2023. USDD stablecoin lost its peg, drops to US$0.97. Nomad Bridge to relaunch and issue partial reimbursement to users affected by US$190M exploit.

Dec 14, 2022
DeFi Weekly

Weekly DeFi Index

This week’s market cap and volume indices were negative at -2.03% and -18.44, respectively, while volatility index was positive at +144.05.

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New Project Spotlight

  • Cronos announced the pre-release version of its upcoming v1.0 mainnet upgrade, which will feature key improvements such as a prioritised Mempool, optimised node storage, IBC token transfer memo field, IBC incentivisation, and custom tx indexer. The mainnet timeline and guide will be released soon ahead of the actual upgrade in early 2023.

News Highlight

  • Ethereum core developers confirmed that the Shanghai hard fork is tentatively scheduled to be deployed around March 2023 during its All Core Devs Call #151. The Shanghai upgrade is expected to support Beacon Chain withdrawals, allowing stakers to redeem ETH locked in the original staking contract and rewards.
  • ConsenSys will start testing its zkEVM private beta testnet internally next week, allowing developers to bridge assets between the Goerli testnet and zkEVM to test smart contracts and dApps, and to deploy dApps using tools like MetaMask and Infura as if they were using Ethereum directly. External users will be onboarded starting January 2023.
  • Osmosis recently launched a stableswap for the Cosmos ecosystem, claiming to be its own version of the Curve 3Pool. It aims to facilitate stablecoin trades with ‘minimal price impact or fluctuations in value’, and will support USDC and Tether, among other stablecoins.
  • TRON’s stablecoin USDD lost its peg and dropped to US$0.97, its lowest level since June. This creates an imbalance in Curve’s USDD/3CRV liquidity pool, which holds nearly 82.5% in USDD. Justin Sun announced that TRON is deploying more capital to defend USDD and bring back the peg. 
  • Arbitrum-based lending platform Lodestar Finance was exploited in a flash loan attack for $6.5 million. It confirmed that the main vulnerability behind the attack was a plvGLP oracle, with the hacker first inflating the token price before using the inflated tokens as collateral to borrow all available liquidity on Lodestar through bad debt. Lodestar tweeted that it’s open to negotiate a bug bounty with the exploiter.
  • Cross-chain messaging protocol Nomad Bridge announced that it will restart its bridge and partially compensate users impacted by a $190M exploit back in August. To access their recovered funds, users will have to undergo a KYC verification process for the reimbursement through a special NFT.

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