Welcome to Finance Redefined, your weekly dose of critical information about Decentralized Finance (DeFi) – a newsletter created to inform you of important developments over the past week.
TranitSwap hacker, who got away with $23 million, returned 70% of the stolen funds. The return became possible thanks to the quick actions of network analytics companies, who were able to find the IP address of the hacker and other personal data.
Another Elliptic research report notes that DeFi bridges and decentralized exchanges (DEXs) are becoming a new frontier for crypto-laundering.
Bitcoin.com CEO Dennis Jarvis believes that Bitcoin can be a bridge that brings users into the field of decentralized finance.
With the strengthening of the US dollar, even DeFi protocols are looking to invest in US dollars as MakerDAO announced that it continues to invest $500 million in Treasuries.
The top 100 DeFi coins by market cap had a mixed week in terms of price action, with most coins trading in the red thanks to a market correction over the weekend. However, many symbols managed to stay positive on the weekly charts.
Transit Swap ‘hacker’ recovers 70% of $23 million in stolen funds
The quick response from a number of blockchain security companies helped recover about 70% of the $23 million exploit from the DEX Transit Swap pool.
DEX pool lost funds after a hacker exploited an internal bug in the swap contract on October 1, prompting a quick response from the Transit Finance team, along with security firms Peckshield, SlowMist, Bitrace and TokenPocket, who were able to respond quickly. The hacker’s IP address, email address, and associated string addresses.
Crypto Laundering “New Frontiers” Include Bridges Over Networks and DEX: Elliptic
A new study by blockchain analytics and crypto compliance firm Elliptic reveals the extent to which bridges across chains and DEXs have removed barriers to cybercriminals.
In their October 4 report, “The State of Network Crime,” elliptical researchers Eray Arda Akartuna and Thibaut Madeleine take an in-depth look at what they call the “new frontier of crypto-laundering.” The report summarizes that the free flow of capital between crypto assets is now much smoother due to the emergence of new technologies such as bridging and DEXs.
Bitcoin Could Solve DeFi Adoption Crisis, CEO Claims
As the decentralized finance space continues to suffer from hacks, people are becoming less interested in jumping in and interacting with DeFi. But according to Dennis Jarvis, CEO of Bitcoin.com, there is a way to pay DeFi through Bitcoin.
In a keynote speech at the Dubai Blockchain Economic Summit 2022, Jarvis noted that massive losses in investor funds, such as the collapse of Terra and the Axie Infinity Ronin hack, made DeFi unattractive to potential users. However, the CEO believes that by using Bitcoin as a hook, DeFi can overcome the enrollment crisis caused by its deteriorating reputation.
MakerDAO Invests $500 Million in Treasuries and Bonds
MakerDAO, the governing body of Maker Protocol, has taken the first step of its plan to reallocate $500 million of its Daicollateral stablecoin reserves into short-term US Treasuries and corporate bonds.
The Decentralized Autonomous Organization (DAO) voted to approve a $1 million pilot deal on October 6 after a vote by Maker executives, with the remaining funds reallocated shortly after community confirmation.
DeFi Market Overview
Analyst data shows that the total value of DeFi locked out is marginally lower compared to last week. At the time of writing, TVL is worth approximately $52.63 billion. Data from Cointelegraph Markets Pro and TradingView shows that the top 100 DeFi coins by market capitalization had a mixed week, with many coins showing a drop over the weekend, while a few others managed to trade in the green.