The top 100 DeFi tokens experienced another erratic week, with the majority of them trading in about the same range as the previous week with just slight price changes.
Welcome to Finance Redefined, a weekly newsletter bringing you the most important developments from the previous week in decentralized finance (DeFi).
The Base and Optimism protocols’ creators collaborated last week in DeFi to create a framework for revenue and governance sharing. Read our in-depth study to discover every detail of the exploit and the subsequent suffering of the victims. Learn more about the $1.5 billion Multichain attack, which has seen some new evidence.
Quantstamp, a blockchain security company, has released a new DeFi tool to identify protocols that are vulnerable to flash loan attacks. Shibarium, the Ethereum layer 2 developed by Shiba Inu, is getting ready for a new launch after its initial public launch was marred by FUD, technical issues, and other issues.
The overall value locked in DeFi protocols had a mixed week, remaining within the previous week’s range while experiencing a slight decline of roughly $70 million.
Framework for the Base, Optimism, Shared Governance, and Revenue-Sharing
A revenue-sharing and governance-sharing deal has been announced by the Base and Optimism networks’ creators. In order to prevent Base from becoming too centralized, Coinbase, Base’s parent firm, has also created a set of “principles of neutrality” that it will abide by.
On August 24, three distinct blog posts—one from Base, one from Coinbase, and one from the jointly controlled Optimism Collective—made this news.
As new evidence surfaces, victims of the $1.5 billion multichain exploit look for answers.
The $1.5 billion Chinese cross-chain technology Multichain’s inventors verified consumers’ worst suspicions on July 14. The CEO of the protocol, known only as “Zhaojun He,” was detained by Chinese authorities on May 21 in Kunming following months of repeated denials through official channels. The core crew of Multichain, which was based in Shanghai, was reportedly also detained.
Zhaojun was detained, but neither the reason for it nor the charges were ever made public. Evidence, however, points to the possibility that Multichain funds were taken in connection with a larger Chinese government crackdown on cryptocurrencies as part of an anti-money laundering effort. The CEO allegedly used a bogus ID to register Multichain’s operations, which just adds to the confusion.
Quantstamp releases a tool to identify protocols’ vulnerability to flash loan attacks.
An automated solution to identify flash loan attack vectors in smart contracts has been launched by blockchain security vendor Quantstamp. Economic Exploit Analysis, the new service, is based on a study done at the University of Toronto.
Protocols will have access to Economic Exploit Analysis whether or not they have been deployed. By locating potential flash loan attack vulnerabilities in a client’s code, it will improve Quantstamp’s audits. The service is non-exhaustive, meaning it might not catch every attack, and it will be accessible on any blockchain that is compatible with the Ethereum Virtual Machine (EVM).
Shiba Inu suggests that Shibarium will be made accessible soon.
Blockchain technology is advancing, and the eagerly awaited public debut of Shibarium L2 is likely to take place. The platform is currently operational and only needs to be made available to the general public, according to the Shiba Inu team.
Shibarium, an Ethereum L2 network, is currently operational and in private mode, has worked without a hitch during its two-day test, and is about to open to the general public, according to the team behind it.
Market overview for DeFi
DeFi’s entire value locked in DeFi protocols experienced a bullish spike in the previous week despite the recent market turbulence. DeFi’s top 100 tokens by market capitalization had a bullish week, according to data from Cointelegraph Markets Pro and TradingView, but the late Thursday fall erased the gains, leaving the majority of tokens trading in the red on the weekly charts. DeFi techniques were used to lock in a total of $49.1 billion in value.
We appreciate you reading our roundup of the most significant DeFi happenings this week. Join us next Friday for more information about this rapidly developing field, tales, perspectives, and instruction.