Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights – a newsletter designed to bring you significant developments over the past week.
Sharing his views on the Tornado Cash saga, the Chief Scientist of Chainalysis said that the incident has left a void for illegal fund commingling services, but the real impact of the sanctions can be determined in the long run.
The staking ecosystem of Ethereum post Merge could have a significant impact on the crypto economy, according to a new report. Institutional lending platform Mapple Finance launched a $300 million lending pool for Bitcoin mining farms.
The Tribe DAO, a decentralized autonomous organization, voted to refund affected users of the $80 million leverage on DeFi platform Rari Capital’s liquidity pools. BNB Chain launched a new community-led security initiative called Avenger DAO.
The top 100 DeFi tokens by market cap have a mixed week in terms of price action, with many tokens trading in the red while a few others posted weekly gains.
Tornado Cash left a void, time will tell what fills it – Chainalysis Chief Scientist
Sanctions against cryptocurrency mixer Tornado Cash have left a vacuum for illegal fund mixing services, but more time is needed before we know the full impact, according to Chainalysis’ chief researcher.
During a demo of Chainalysis’ newly launched blockchain analytics platform Storyline, Cointelegraph asked Chainalysis Chief Scientist Jacob Illum and Country Manager for Australia and New Zealand Todd Lenfield about the impact of the Tornado Cash ban.
Tribe DAO votes to pay back victims of $80M Rari hack
After months of uncertainty, Tribe DAO has passed a vote to refund affected users of the $80 million leverage on DeFi platform Rari Capital’s liquidity pools.
After several rounds of voting and governance proposals, Tribe DAO, which consists of Midas Capital, Rari Capital, Fei Protocol and Volt Protocol, made the decision to vote on Sunday with the intention of providing full compensation to hack victims.
Venture providers may expand institutional presence in crypto space: Report
The Ethereum blockchain’s carbon footprint is expected to decrease by 99% after last week’s Merge event. By positioning efforts as a service for private and institutional investors, the upgrade could also have a significant impact on the crypto economy, according to a report from Bitwise on Tuesday.
The company said it projects potential gains of 4-8% for long-term investors through Ether (ETH) staking, while JP Morgan analysts predicted that staking returns across PoS blockchains could double to $40 billion by 2025.
Maple Finance Launches $300M Lending Pool for Bitcoin Mining Companies
On September 20, institutional crypto lending protocol Maple Finance and its delegate Icebreaker Finance announced that they would provide up to $300 million in secured debt financing to public and private Bitcoin mining firms. Eligible entities that meet standards for financial management and power strategies throughout North America, as well as those in Australia, may apply for funding.
On the other hand, the venture seeks to deliver risk-adjusted returns in the low teenage percentages (up to 13% per annum) to investors and capital allocators. The pool is only open to accredited investors who meet significant income and/or net worth qualifications within a jurisdiction.
BNB Chain launches a new community-driven security mechanism to protect users
BNB Chain, the original blockchain of Binance, has launched AvengerDAO, a new community-driven security initiative to protect users from fraud, malicious actors and potential exploits.
The security-centric DAO has been developed in collaboration with leading security firms and popular crypto projects such as Certik, TrustWallet, PancakeSwap and Opera, to name a few.
DeFi Market Overview
Analytical data reveals that DeFi’s total value locked registered a minor drop from the last week. The TVL value was around $50.64 billion at the time of writing. Data from Cointelegraph Markets Pro and TradingView show that DeFi’s top 100 tokens by market cap had a mixed week, with many tokens rallying towards the end of the week, while a few others traded in the red on the weekly charts.
Compound (COMP) was the biggest gainer, registering a 15% increase over the past seven days, followed by PancakeSwap (CAKE) with a gain of 8.8%. Theta Network (THETA) was another token in the top 100 to achieve a 5% weekly gain.
Thanks for reading our roundup of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education in this dynamic area of progress.