“There is a common misconception that DeFi is truly decentralized and governed by autonomous code or smart contracts,” Tuang Lee Lim, Chair of IOSCO’s Board-Level Fintech Task Force, said in a statement. “In reality, regardless of the operating model of the DeFi arrangement, ‘responsible persons’ can be identified.” Source
Read about five under-the-radar protocols that are expected to change the onchain game. DeFi continues to defy expectations while refusing to be written off. In 2023 the decentralized finance sector has spawned new use cases while entering new ecosystems and chains. The sort of primitives that emerged in the early 2020s, for lending, borrowing, trading, and yield generation, have undergone a makeover. The “swap token A for token B through a single liquidity pool” model popularized by Uniswap has evolved beyond all recognition: the forthcoming Uni v4 is scarcely recognizable…
The asset management industry is expected to push beyond bitcoin and ether into areas including other top blockchains, such as Solana and Polygon, and even leading decentralized finance (DeFi) assets, the note said. DeFi is an umbrella term used for lending, trading and other financial activities carried out on a blockchain, without traditional intermediaries. Source
Binance CEO Changpeng “CZ” Zhao predicts that decentralized finance (DeFi) has the potential to surpass centralized finance (CeFi) in the next bull run. During a Sept. 1 live X Spaces (formerly Twitter Spaces), titled CZ AMA, CZ shared his thoughts on the future of DeFi. “I think the more decentralized the industry becomes, the better,” he declares, adding that it may not be long before it takes over CeFi trading volumes: “Defi is the future, the volume is somewhere between 5% to 10% of CeFi volumes, which is not small right […]…
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. In this week’s newsletter, Ethereum staking services have agreed upon a 22% limit on all validators to ensure fair markets. August proved to be another costly month for DeFi as several protocols were collectively exploited for $16 million. In separate exploit news, Balancer protocol lost nearly $900,000 due to a vulnerability flagged months ago. Shibarium’s second launch proved more stable as the…
Base, an Ethereum layer 2 (L2) network developed by prominent cryptocurrency exchange Coinbase, has seen its total value locked (TVL) soar to new heights on Friday, August 31. This surge was triggered by the recent launch and growing hype around the decentralized exchange (DEX) platform Aerodrome. Total Value Locked on Base Reach $333 Million The total decentralized finance (DeFi) deposits on Base have hit a new all-time high following a nearly 76% spurt in the past 24 hours. According to data from DefiLlama, the network’s TVL currently stands at $346.39…
The US Treasury Department recently revealed a proposal outlining new tax rules for the cryptocurrency industry. Among the updates is the introduction of a 1099 form for crypto transactions. The new guidelines also clarify tax obligations for digital asset miners. The proposed bill appears to exempt miners while potentially impacting cryptocurrency exchanges, causing backlash from the industry, especially decentralized finance (defi) professionals. A tailored tax form The proposed regulations come as a response to the 2021 Infrastructure Investment and Jobs Act, aiming to clarify tax reporting requirements for the rapidly…
Magnate Finance, a DeFi lending protocol on the Ethereum layer-2 network Base, is reported to have conducted a rug pull, robbing its users of $6.4 million worth of assets. This event represents the latest troubling incident on the Base network in merely a month of its official mainnet launch. 3 Rug Pulls, $16.7 Million Lost – Who’s Responsible? On Friday, August 25, blockchain security intelligence Peckshield confirmed Magnate Finance’s rug pull, stating that the project developers manipulated the provider of the price oracle, allowing them to withdraw all assets of…
“Yes, RWA is already in DeFi, and now Pendle is able to offer a suite of tools that lets you properly hedge or manage these yields. Interest rate derivatives, swaps, fixed income…all these products that TradFi institutions love, they’re already here,” Lee added. Source
The extra payout has drastically bitten into Maker’s profits, Kunal Goel, analyst at Messari noted in a report. “Higher rates on higher deposits ballooned the protocol’s interest expense [and] has dried up profit expectations,” he wrote. The too-high rate also opened up opportunities for arbitrage, Goel added. Source