Sushi to Test Bitcoin Swap and Opyn DeFi Protocol Founders to CFTC Pressure Cave: Finance Redefined
Welcome to Finance Redefined, your weekly volume of decentralized finance (DeFi) insights – a newsletter designed to bring you the most relevant developments from the past week.
A new DeFi report highlights that a large amount of crypto lost to exploitation is due to traditional Web2 flaws and security issues such as data centralization, which makes it easier to exploit.
Decentralized exchange (DEX) platform Sushi is about to start testing Bitcoin (BTC) exchanges on 30 blockchains using the interoperability platform ZetaChain.
The two founders of the Opyn DeFi protocol have announced their intention to leave the crypto from their respective positions in the company due to an enforcement action against them by the United States Commodity Futures Trading Commission (CFTC).
The DeFi ecosystem continues to grow, thanks to the continued bullish market momentum, with most tokens trading in the green on weekly charts.
46% of crypto lost to exploitation is due to traditional Web2 flaws – Immunefi
According to a new report from blockchain security platform Immunefi, nearly half of all crypto lost from Web3 exploits is due to Web2 security issues, such as leaked private keys. In the year The report, released on November 15, looks at the history of crypto exploitation in 2022 and categorizes it into different types of vulnerabilities. In the year It concluded that 46.48% of all listed cryptocurrencies in 2022 were lost not to smart contract flaws, but to “infrastructure weaknesses” or issues with a growing company's computer system.
Web2 vulnerabilities were a small portion of the total at 26.56%, although they were still the second largest category when considering the number of incidents rather than crypto value lost.
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Sushi joins ZetaChain to start testing native Bitcoin DeFi swaps
Diffie's platform Sushi has partnered with activism platform ZetaChain to explore the possibility of native bitcoin exchanges for its users across 30 different blockchain networks.
The deployment of Sushi DEX on ZetaChain is expected to enable BTC trading in what the team describes as a “native, decentralized and permissionless way” without having to integrate across multiple blockchains.
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The founders of the Opyn DeFi protocol are leaving crypto after the CFTC leak.
Zubin Kotcha and Alexis Gaba, the founders of the Opyn DeFi protocol, have “left crypto” from the project, according to Kotcha's statement posted on social media on November 14.
The statement comes two months after Opyn filed an enforcement action against it from the US CFTC.
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Layer-2 networks reach $13 billion TVL, but challenges remain
Ethereum layer-2 networks reached a new milestone on November 10, with $13 billion total value locked in contracts (TVL), according to data from the blockchain analytics platform L2Beat. According to industry experts, this trend of more interest in Layer 2 is likely to continue, although there are some challenges, especially in terms of user experience and security.
According to L2Beat, 32 different networks will qualify as Ethereum Layer 2, including Arbitrum One, Optimism, Base, Polygon zkEVM, Metis and others. Before June 15, all these networks combined had just under $10 billion worth of cryptocurrency locked up in their contracts, down from their peak TVL pool of $11.8 billion in April.
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Overview of the DeFi market
According to data from Cointelegraph Markets Pro and TradingView, DeFi's top 100 tokens by market capitalization had a very busy week, with most tokens trading in the green on the weekly charts. The total value locked up in DeFi protocols remains over $50 billion.
Thanks for reading this week's roundup of the most impactful DeFi developments. Join us next Friday for more stories, insights and lessons about this dynamic and evolving space.
