DeFi & L1L2 Weekly (02/08/2023)

Crypto.com secures registration approval in the Netherlands. MakerDAO passed a proposal to temporarily increase DAI’s interest rate. Curve Finance confirms that various Ethereum pools were hacked.

Aug 02, 2023
DeFi Weekly

Image 1

Chart of the Week

Curve Finance, one of the biggest crypto decentralised exchanges, is experiencing a massive flight of capital after the platform suffered from an exploit resulting from vulnerabilities in an old version of the programming language Vyper. Curve’s total value locked (TVL) has dropped from US$3.25 billion as of 28 July down to $1.67 billion, representing a 50% plunge.

Crypto.com Curve Finance Total Value Locked

Crypto.com DeFi Index Token Performance 2 Aug
  • The MakerDAO community voted in favour of proposal GOV12.1.2, which will introduce the Enhanced Dai Savings Rate (EDSR). As detailed in the proposal, the EDSR will temporarily increase the effective DSR available to users in the early bootstrapping stage when DSR utilisation is low.

Crypto.com TVL of Top Chains 2 Aug

Crypto.com Top DEX by Chain 2 Aug

News Highlights

  • Crypto.com has been approved for registration with De Nederlandsche Bank (DNB) as a provider of crypto services. This licensure milestone follows a comprehensive review of Crypto.com’s business and compliance posture in line with Netherlands’ Money Laundering and Terrorist Financing (Prevention) Act.
  • The MakerDAO community voted in favour of proposal GOV12.1.2, which will introduce the Enhanced Dai Savings Rate (EDSR) to temporarily increase the interest rate granted to DAI holders.
  • Cardano launched the Mithril protocol on its mainnet on 30 July. The Mithril upgrade aims to increase blockchain speed and efficiency, particularly by reducing node syncing time without compromising security. 
  • CLabs, the development team behind the carbon-negative, mobile-first blockchain Celo, passed its proposal to migrate from an EVM-compatible Layer-1 blockchain to an Ethereum Layer-2 solution. 
  • Over $47 million in various digital assets have been drained in a series of attacks on the decentralised exchange Curve Finance (CRV) on Sunday. Upwards of $100 million worth of cryptocurrency are at risk because of a reentrancy bug in certain versions of Vyper, a programming language used for writing smart contracts on the Ethereum blockchain. This leaves four Curve Finance pools (alETH/ETH, msETH/ETH, pETH/ETH, and CRV/ETH) vulnerable, but all other pools are safe and unaffected by the bug.
  • A month after its launch, zkSync-based DeFi aggregator protocol Kannagi Finance has initiated an exit scam, draining about $2.4 million in the process.
  • On 31 July, Twitter users began reporting that the BALD memecoin’s deployer account had removed 1,034 ETH in liquidity, allegedly initiating an exit scam and causing the token’s price to fall to near-zero.
  • LeetSwap, a decentralised exchange built on Coinbase’s Layer-2 blockchain Base, has halted trading amid fears of an exploit, with reports that liquidity pairs on Base had been exploited for approximately 340 ETH (roughly $630,000).

Recent Research Reports

  • Crypto Market Sizing Report H1 2023: Global crypto owners reached 516 million by the first half of 2023
  • Research Roundup Newsletter [June 2023]: We present to you our latest issue of Research Roundup, featuring trending market insights in June, charts of the month, and our latest research exploring ZK rollups and Layer-0 protocols.
  • The Development of ZK Rollups: Zero-knowledge rollups (ZK rollups) are still in their nascent stage. However, as the technology evolves, various methods to achieve compatibility with the Ethereum Virtual Machine (EVM) have emerged.
  • Layer-0: Infrastructure for Customised Blockchains: Layer-0 protocols are the infrastructure that customised Layer-1 blockchains can be built on. We explore notable projects like Cosmos, Polkadot, Avalanche, LayerZero, and zkLink.
  • Alpha Navigator: Quest for Alpha [June 2023]: Asset classes finished the first half of 2023 strongly, with crypto in the lead. Decelerating US inflation readings could ease market concerns for the time being, while BTC options implied volatilities remain muted.

Recent University Articles


We’re all ears.

Your feedback helps make our reporting more insightful. Tell us how we can improve this newsletter by taking the survey below. It will take less than a minute of your time. Thank you!


Author

Research and Insights Team

Disclaimer:

The information in this report is provided as general market commentary by Crypto.com and its affiliates, and does not constitute any financial, investment, legal, tax, or any other advice. This report is not intended to offer or recommend any access to products and/or services. While we endeavour to publish and maintain accurate information, we do not guarantee the accuracy, completeness, or usefulness of any information in this report nor do we adopt nor endorse, nor are we responsible for, the accuracy or reliability of any information submitted by other parties.

This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of, or located in a jurisdiction, where such distribution or use would be contrary to applicable law or that would subject Crypto.com and/or its affiliates to any registration or licensing requirement.

The brands and the logos appearing in this report are registered trademarks of their respective owners.

Tags

crypto research

DeFi

layer 1

layer 2

Share with Friends

Ready to start your crypto journey?

Get your step-by-step guide to setting up an account with Crypto.com

By clicking the Get Started button you acknowledge having read the Privacy Notice of Crypto.com where we explain how we use and protect your personal data.
Mobile phone screen displaying total balance with Crypto.com App

Common Keywords: 

Ethereum / Dogecoin / Dapp / Tokens