Welcome to Finance Redefined, your weekly dose of Fundamental Decentralized Finance (DeFi) insights – a newsletter prepared to bring you important developments over the past week.
Chainalysis’s chief scientist shared his views on the Tornado Cash saga and said the incident left a void for illicit money-shrinking services, but that the true impact of the sanctions could be determined in the longer term.
According to a new report, the Ethereum post Merge staking ecosystem could have a significant impact on the cryptocurrency economy. Institutional lending platform Mapple Finance has launched a $300 million lending pool for bitcoin mining farms.
Tribe DAO, an independent decentralized organization, has voted to repay exploiters $80 million to affected users on the liquidity pools of the DeFi Rari Capital platform. BNB Chain has launched a new community-led security initiative called Avenger DAO.
Top 100 DeFi tokens by market cap have a mixed week in terms of price action, with many tokens trading in red while a few others showed weekly gains.
Tornado Cash left a void, time will tell what fills it – Chainalysis Chief Scientist
Sanctions on crypto-mixer Tornado Cash have left a void for illicit money-mixing services, but more time is needed before we know the full impact, according to the chief scientist at Chainalysis.
During a demonstration of Chainalysis’s recently launched blockchain analytics platform Storyline, Cointelegraph asked Chainalysis Chief Scientist Jacob Ellum and Australia and New Zealand Country Director Todd Linfield about the impact of the Tornado Cash ban.
DAO Tribe Votes to Compensate RARE Victims of $80 Million
After months of uncertainty, Tribe DAO has passed a vote to pay affected users to exploit $80 million on DeFi Rari Capital’s liquidity pool.
After several rounds of voting and governance proposals, the Tribe DAO, which consists of Midas Capital, Rari Capital, Fei Protocol and Volt Protocol, took the decision to vote on Sunday with the intent of fully compensating the victims of the hack.
Staking Providers Can Extend Enterprise Presence in Crypto Space: Report
The carbon footprint of the Ethereum blockchain is expected to drop by 99% after the merger event last week. By positioning staking as a service for retail and institutional investors, the promotion could also have a significant impact on the crypto economy, according to a report from Bitwise on Tuesday.
The company said it expects a potential gain of 4% to 8% for long-term investors via its Ether (ETH) stake, while JP Morgan analysts have predicted that returns via PoS blockchains will double to $40 billion by 2025.
Maple Finance Launches $300 Million Lending Pool for Bitcoin Miners
On September 20, institutional crypto lending protocol Maple Finance and its representative Icebreaker Finance announced that they would provide up to $300 million in secured debt financing to public and private Bitcoin mining companies. Eligible entities that meet the criteria for Treasury Management and Energy Strategies located throughout North America, as well as those in Australia, can apply for funding.
On the other hand, the project seeks to offer risk-adjusted returns at low rates for teens (up to 13% per annum) to investors and capital allocators. The pool is only open to accredited investors who meet substantial income and/or net qualifications within a jurisdiction.
BNB Chain launches a new community-run security mechanism to protect users
BNB Chain, Binance’s original blockchain, has launched AvengerDAO, a new community-led security initiative to help protect users from fraud, malicious actors, and potential exploits.
The security-focused DAO was developed jointly with leading security companies and popular crypto projects like Certik, TrustWallet, PancakeSwap, and Opera, to name a few.
DeFi Market Overview
Analytical data reveals that the total value of DeFi locked down is slightly lower than last week. TVL was worth approximately $50.64 billion at the time of writing. Data from Cointelegraph Markets Pro and TradingView shows that the top 100 DeFi tokens by market capitalization had a mixed week, with many tokens recovering over the weekend while a few others traded in red on the weekly charts.
Compound (COMP) was the biggest gainer, posting a 15% gain over the past seven days, followed by PancakeSwap (CAKE) with 8.8%. Theta Network (THETA) was another token in the top 100 to post a weekly gain of 5%.
Thank you for reading our summary of the latest impactful DeFi developments this week. Join us next Friday for more stories, ideas, and education in this dynamically evolving space.