Tag: DeFi

Friend.tech Regains Strong DeFi Activity with TVL Shooting Past $20M

One possible reason behind the strong surge in Freind.tech’s user activity is due to several non-crypto personalities joining the platform recently. Decentralized social platform Friend.tech is once again gaining major traction with the total value locked (TVL) shooting to more than $20 million in the last four days. The development comes within two weeks of critics declaring the platform “dead” after the activity on the platform started to “fizzle out”. Nonetheless, Friend.tech has experienced a notable resurgence in activity in recent days, with the app recording a daily trading volume…

BIS thinks DeFi has no use cases, but CZ is bullish: Finance Redefined

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Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you the most significant developments from the past week. The past week in the DeFi ecosystem was filled with ups and downs, from the United States Commodity Futures Trading Commission’s (CFTC) investigation into multiple DeFi protocols to Binance CEO Changpeng “CZ” Zhao’s forecast that DeFi would outgrow centralized finance (CeFi) in the next bull run. While CZ anticipates a bright future for DeFi, a report from the Bank for International Settlements…

CFTC filed complaints against three defi protocols

The United States Commodity Futures Trading Commission (CFTC) has issued orders against three defi protocols for failing to register derivative trading offerings. The regulatory body has acted against the three decentralized finance (defi) protocols: Opyn, ZeroEx, and Deridex. The regulator claims they failed to register derivatives trading offerings. The CTFC ordered that the companies pay fines of $250,000, $200,000, and $100,000, respectively. The entities reportedly failed to comply with the customer’s regulations and provisions established in the Bank Secrecy Act. The defi protocols were also charged with illegally offering leveraged…

DeFi enforcement sparks dissenting opinion from CFTC commissioner

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Commodity Futures Trading Commission (CFTC) Commissioner, Commissioner Summer K. Mersinger, has said that he is concerned that the United States CFTC is considering enforcement actions related to decentralized finance (DeFi) protocols rather than engaging with the public. In a public statement issued on Sept. 7, the dissenting commissioner expressed his misgivings about the approach taken by the CFTC in these cases, arguing that enforcement actions are not the most suitable means of addressing novel DeFi technology. The commissioner believes that the CFTC should engage with the public and stakeholders through rulemaking…

Synthetix DEX launch to join efforts reducing the ‘serious friction’ in DeFi

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Decentralized derivatives protocol Synthetix is the latest project aiming to close the usability gap between centralized and decentralized exchanges — with a Q4 slated launch of the Synthetix V3 protocol and its decentralized exchange front-end, called Infinex. Speaking to Cointelegraph, Synthetix founder Kain Warwick said the Q4 slated launch of Infinex — a decentralized perpetual futures exchange front-end which enables trades on Optimism (OP) — as the “missing component” that could bring more users to DeFi. We are entering DeFi’s greatest chance to take on centralised finance. Let’s start talking…

CTFC cracks down on DeFi protocols Opyn, ZeroEx and Deridex

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The United States Commodity Futures Trading Commission (CFTC) is taking regulatory action against three decentralized finance protocols for allegedly failing to register various derivatives trading offerings. The U.S. commodities regulator announced that it issued orders against protocol Opyn, ZeroEx and Deridex in a Sept. 8 statement. Today @CFTC issued orders against operators of three DeFi protocols for offering illegal digital asset derivatives trading. Learn more: https://t.co/7YDbgC1Xl2 — CFTC (@CFTC) September 7, 2023 Deridex and Opyn were charged for failing to register as a swap execution facility or designated contract market…

CFTC Goes After Opyn, ZeroEx, Deridex DeFi Operations in Enforcement Sweep

The three firms face a number of accusations based on their use of blockchain-based protocols and smart contracts to function as trading platforms, according to the CFTC. The U.S. derivatives regulator is ordering Opyn, ZeroEx, and Deridex to cease the activity and pay penalties of $250,000, $200,000, and $100,000, respectively. The companies agreed to these terms to settle the charges.  Source

‘Pure’ DeFi has little chance for real-world use because of need for oracles: BIS

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The need for an oracle in decentralized finance (DeFi) is a major impediment to adoption in the real world, according to the authors of a Bank for International Settlements (BIS) bulletin. The problems with oracles are both practical and principled, and the study’s authors saw no way around them. An oracle is a third party that provides real-world data flowing to or from a DeFi protocol. An oracle is centralized by nature, and its presence means a protocol is not fully decentralized—if that is tolerated, then trustlessness is lost, the…