DeFi & L1L2 Weekly (19/04/2023)

Ethereum’s Shapella upgrade goes live. Uniswap community approves proposal to launch on Polygon’s zkEVM. Arbitrum proposal to return 700M ARB tokens fails.

Weekly DeFi Index

This week’s market cap, volume, and volatility indices were positive at +8.62%, +44.96%, and +46.89%, respectively.

News Highlights

• Ethereum successfully completed the Shapella upgrade on 12 April, and validators can now withdraw their staked ETH. Over 1 million ETH have been withdrawn since Sunday, with some token holders opting to restake their ETH withdrawn since the upgrade. 
• The Uniswap DAO approved the proposal to launch v3 on Polygon zkEVM after a unanimous governance vote. This move will allow users to access the decentralised exchange from Polygon’s newly released zkEVM Layer 2 network. 
• Arbitrum Improvement Proposal (AIP) 1.05, which aims to return 700 million ARB governance tokens to Arbitrum’s DAO Treasury, has failed to secure approval by an overwhelming majority.  
• A recent vulnerability that affects Ethermint and the Cosmos ecosystem was discovered by crypto trading firm Jump Crypto, which could have resulted in an eight-figure exploit. The Evmos core development team confirmed that it blocked the vulnerability before it could cause any impact to networks.
• An older version of the DeFi protocol Yearn Finance was exploited for US$11.6 million in a flash loan attack on 13 April, due to a vulnerability in Yearn’s USDT token yUSDT. 
• DeFi protocol Kyber Network discovered a vulnerability in KyberSwap Elastic, and asked its liquidity providers to withdraw their funds immediately. Only KyberSwaP Elastic funds were reported to be affected, and so far no funds have been lost. 
• Consensys confirmed that an unnamed third-party service provider was a victim in a cyber security incident, which resulted in an unauthorised third party gaining access to 7,000 MetaMask users’ data.

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