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.
Sharing his views on the Tornado Cash saga, the Chief Scientist of Chainalysis said that the incident has left a void for illegal fund mixing services, but the real impact of the sanctions can be determined in the long term.
According to a new report, the Ethereum ecosystem could have a significant impact on the crypto economy after the merger. Institutional lending platform Mapple Finance has launched a $300 million loan fund for bitcoin mining farms.
The Tribe DAO, a decentralized autonomous organization, voted to repay affected users $80 million of DeFi platform Rari Capital’s liquidity pools exploit. BNB Chain has launched a new community-led security initiative called Avenger DAO.
The top 100 DeFi tokens by market cap have had a mixed week in terms of price action, with many tokens trading in the red while several others posted weekly gains.
Tornado Cash has left a void, time will tell who will fill it – Chief Scientist of Chainalysis
Sanctions on 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 scientist.
During a demo of the company’s recently launched blockchain analytics platform Chainalysis Storyline, Cointelegraph asked Chainalysis Chief Scientist Jacob Illum and Australia and New Zealand Country Manager Todd Lenfield to impact of Tornado Cash ban.
The DAO tribe votes to pay out $80 million to victims of the Rari hack
After months of uncertainty, Tribe DAO has approved a vote to repay affected users $80 million in DeFi platform Rari Capital’s liquidity funds.
After several rounds of voting and governance proposals, Tribe DAO, which consists of Midas Capital, Rari Capital, Fei Protocol and Volt Protocol, decided to vote on Sunday with the intention of fully compensating the hacked victims.
Staking Providers Could Expand Institutional Presence In Cryptospace: Report
Ethereum’s blockchain carbon footprint is expected to decrease by 99% after last week’s Merge event. By placing bets as a service for retail 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 plans potential gains of 4-8% for long-term investors via Ether (ETH) staking, while JP Morgan analysts predict that staking returns across PoS blockchains may double to $40 billion by 2025.
Maple Finance Launches $300M Loan Fund For Bitcoin Mining Companies
On September 20, constitutional cryptocurrency lending protocol Maple Finance and its subsidiary Icebreaker Finance have announced that they will provide up to $300 million in secured debt financing to public and private bitcoin mining companies. Qualified entities meeting Treasury Management Standards and Energy Strategies located throughout North America as well as Australia can apply for funding.
On the other hand, this business seeks to provide investors and capital allocators with risk-adjusted returns in the low-teens (up to 13% per annum). The Fund is open only to accredited investors who meet the qualifying requirements of substantial income and/or net worth within the jurisdiction.
BNB Chain launches new community security mechanism to protect users
BNB Chain, Binance’s native blockchain, has launched AvengerDAO, a new community-driven security initiative to help protect users from fraud, malicious actors and potential exploits.
The security-focused DAO was 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 the total value of DeFi locked has seen a minor decrease from last week. TVL was valued at about $50.64 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 mixed week, with many tokens recovering towards the end of the week while several others traded in the red on the weekly charts.
The biggest gainer was Compound (COMP), up 15% over the past seven days, followed by PancakeSwap (CAKE) with a profit of 8.8%. Theta Network (THETA) was another token in the top 100 that posted a 5% weekly gain.
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.