Welcome to Finance Redefined, your weekly dose of basics decentralized finance (DeFi) insights — a newsletter designed to bring you significant developments over the past week.
Following the demise of FTX, the DeFi space is poised for a complete overhaul as cryptocurrency users demand better security and compliance practices.
SushiSwap’s plan for the coming year includes the development of a decentralized exchange (DEX) aggregator, a decentralized incubator and “several stealth projects”. All these projects together can increase its market share 10x, the CEO said.
The co-founder and CEO of Ava Labs spoke to Cointelegraph at the World Economic Forum in Davos, Switzerland about the future of DeFi and traditional finance (TradFi) and said that DeFi should complement TradFi, not attack it. Another DeFi report suggests that decentralized forex could reduce costs by up to 80%.
The top 100 DeFi tokens saw a second week of bullish price action, with most tokens trading in the green on the weekly charts.
SushiSwap’s New DEX Aggregator “10x Our Market Share” — Chef
Just a month after warning of a “significant deficit” in its treasury, the CEO of decentralized exchange SushiSwap has shared several planned updates to the platform, which he said are intended to “10x” its market share by 2023.
SushiSwap’s CEO, Jared Grey, laid out plans for the DeFi platform in a post on January 16, saying it would focus on its product suite in line with previous plans to make Sushi more sustainable.
DeFi should complement TradFi, not attack it: Ava Labs CEO | Davos 2023
DeFi is moving from a small niche in the financial industry to something TradFi is trying to incorporate.
In an interview with Cointelegraph on World Economic Forum in Davos, Switzerland Emin Gun Sirer, co-founder and CEO of Ava Labs, talked about the role of DeFi in the TradFi ecosystems and what users can expect in the future when both take center stage.
Decentralized forex will reduce costs by up to 80%: Report
If the foreign exchange market starts using DeFi protocols instead of the current centralized systems, transfer costs could be reduced by “up to 80%,” according to a January 19 paper jointly published by researchers at Circle and Uniswap.
The authors studied the trading activity of Circle’s USD Coin (USDC) and Euro Coin (EUROC) on Uniswap from July 2022 to January 2023. They found a total coin volume of $128 million, with trading volume of up to $8 million on some days.
Raydium exploiter moves $2.7 million to crypto mixer Tornado Cash
In an alert, blockchain security firm CertiK announced that a Raydium protocol abuser had sent 1,774.5 ether (ETH) to the Tornado Cash cryptocurrency mixer. The amount is worth around $2.7 million at the time of writing.
As security teams from various exchanges continue to fight the hackers’ efforts, funds continue to flow into the sanctioned Tornado Cash.
DeFi Market Overview
Analytics data reveals that the total DeFi market cap remained over $40 billion last week, trading at around $44.9 billion at the time of writing. Data from Cointelegraph Markets Pro and TradingView show that the top 100 DeFi tokens by market cap had a bullish week, with almost all tokens breaking multi-week highs.
Convex Finance (CVX) was the biggest gainer on the weekly charts, posting a 37% price increase over the past seven days, followed by Kava (KAVA) with a 34% increase. Synthetix (SNX) saw a 29% gain on the weekly charts, while the rest of the top 100 tokens also saw bullish gains over the past week.
Thanks for reading our roundup of this week’s most impactful DeFi changes. Join us next Friday for more stories, insights and education in this dynamically developing space.