Tag: DeFi

Innovate some compliance mechanisms, US Treasury official tells DeFi community

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The United States Treasury did a risk assessment of decentralized finance (DeFi) and found the sector lacking in several ways, Assistant Treasury Secretary for Terrorist Financing and Financial Crime Elizabeth Rosenberg reminded an audience at the Atlantic Council think tank on April 21. Get ready for more regulation, she said. Rosenberg wasย referring to a report released earlier in April by the Treasury that found scammers, money launderers and North Korean hackers benefitting from the lack of Anti-Money Laundering (AML) and Countering the Financing of Terrorism (CFT) compliance in the sector.…

TransUnion to begin providing identity-protected credit scoring for DeFi lending

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TransUnion, one of the three major United States credit reporting agencies, announcedย on April 20 that it would begin supplying credit scoring to public blockchain networks. Off-chain credit data have not previously been available to Web3 and decentralized finance (DeFi) applications. In the new TransUnion service, credit information will be made available to decentralized applications, or DApps, at the consumer’s request. Complete credit information will be delivered to the consumer, and excerpts will go to the DApp. TransUnion partnered with Spring Labs and Quadrata to provide credit data through a digital…

DeFi driving zkSync growth as 1inch deploys on Ethereum layer-2 scaling platform

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Decentralized finance (DeFi) protocol 1inch has deployed its aggregation and limit order protocols on Ethereum layer-2 scaling solution zkSync Era to tap into faster and cheaper transactions. 1inch Network is the latest of a host of Ethereum-based platforms and services to deploy on the zero-knowledge proof (zk-proof) based scaling platform. Uniswap, SushiSwap, Maker and Curve Finance have also launched on the zk-proof roll-up zkSync Era. 1inch Network co-founder Sergej Kunz highlighted the promise of the layer-2 solution as his platform joins a handful of first-movers to integrate with the zk-proof…

SEC Lays Its Cards on the Table With Assertion That DeFi Falls Under Securities Rules

โ€œWe see this new technology, and weโ€™re not willing to make any adjustments to accommodate it,โ€ SEC Commissioner Hester Peirce said Monday on CoinDesk TV, further detailing her criticism of last weekโ€™s move, which she opposed. โ€œIf you donโ€™t look exactly like incumbent firms, then weโ€™re just going to be fine with killing you off or driving you offshore or forcing you to turn yourself into a centralized entity.โ€ Original Source AssertionCardsDeFiFallsLaysRulesSECSecuritiesTable CryptoX Portal

What DeFi Must Sacrifice to Appease Regulators

The solution is called the โ€œinternet financial system,โ€ or IFS, which combines the best of DeFi and traditional finance (TradFi) in one unified network. An idea championed first by Chris Burniske, IFS is built on open crypto rails and preserves blockchainโ€™s most important attributes such as decentralized settlement, self-custody, transparency and composability. Source

Lending Protocol Hundred Finance Loses $7M in Fresh DeFi Exploit

The hacker was able to withdraw more tokens than were initially deposited. There appears to be a rising case of DeFi exploits and multichain lending protocol Hundred Finance may be the latest victim. According to a recent announcement by the protocol, attackers found a loophole to successfully manipulate the exchange rate between ERC-20 tokens and hTOKENS. And as a result, the attacker has reportedly made away with no less than $7.4 million from the protocol. Meanwhile, it might be worth noting that this is the second time in as many…

DeFi lending protocol, Hundred Finance, hacked for $7.4m

Multichain lending protocol, Hundred Finance, was hacked on Ethereumโ€™s layer-2 scaling solution, Optimism, resulting in a loss of approximately $7.4m. Hundred Finance hacked On April 15, the DeFi platform announced that it had contacted the hacker and collaborated with many security teams. The protocol also requested anyone with information to get in touch. Estimated current loss is ~7m USD. Once again we hope the hacker will reach out back to us and we will be able to find a joint solution to resolve this matter. ๐Ÿ™ Thank you everyone for…

Liquid Staking Protocols See Increase in Monthly ETH Deposits Despite Withdrawals Post-Shapella Hard Fork โ€“ Defi Bitcoin News

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Following the Shapella hard fork on April 12, 2023, approximately 332,368 ether, valued at around $699 million, has been withdrawn. Despite these withdrawals, liquid staking protocols like Lido, Rocketpool, and others have experienced an increase in ether deposits over the last 30 days. Since March 14, a total of 281,498 ether worth $592 million have been added to these protocols. TVL in Staked Ether Accounts for Over 30% of Defiโ€™s Locked Value, With Lido Leading the Pack As of April 15, 2023, thereโ€™s $53.68 billion total value locked (TVL) across…

SEC targets DeFi in vote to revisit proposal concerning the definition of ‘exchange’

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The United States Securities and Exchange Commission (SEC) has announced it will be revisiting the proposed redefinition of an โ€œexchangeโ€ under the agencyโ€™s rules โ€” a move which could include crypto market participants in decentralized finance, or DeFi. In an April 14 open meeting with SEC commissioners and staff, chair Gary Gensler said the proposed rule amendments could benefit investors and markets by bringing certain brokers under additional regulatory scrutiny as well as โ€œmodernizingโ€ rules which define an exchange. Under the proposal, an โ€œexchangeโ€ would be more closely defined as…