The decentralized finance (DeFi) sector continues to attract increased attention from cryptocurrency investors. ForkLog has collected the most important events and news of recent weeks in a digest.
Key indicators of the DeFi segment
The volume of blocked funds (TVL) in DeFi protocols remained almost unchanged – $38.09 billion. The leader was Lido with $14 billion, while the second and third places in the ranking were held by MakerDAO ($4.68 billion) and AAVE ($4.59 billion), respectively. .
TVL in Ethereum applications fell to $20.8 billion. Trading volume on decentralized exchanges (DEX) over the past 30 days amounted to $36.8 billion.
Uniswap continues to dominate the non-custodial exchange market, accounting for 55% of total turnover. The second DEX in terms of trading volume is PancakeSwap (16.7%), the third is Dodo (8.2%).
Coinbase Unintentionally Earned $1 Million After Curve Hack
The Coinbase cryptocurrency exchange, as a validator, processed an Ethereum transaction after hacking the Curve Finance DeFi protocol and received about $1 million in reward.
On July 30, an unknown person attacked the Curve Finance stablecoin pools and withdrew approximately $61.7 million. The platform’s asset pricing system did not work correctly for some time.
A trading bot noticed a unique arbitrage opportunity and paid 570 ETH (approximately $1 million at the exchange rate at that time) to process the transaction “out of turn.”
The recipient of the reward was Coinbase, according to analytics company Nansen and the Alchemix landing protocol, which was affected by the hack. The latter noted that the exchange did not refund the assets even after the request.
The SEC threatened centralized exchanges and DeFi projects
Besides Binance and Coinbase, there are others CEX and DeFi protocols, whose activities SEC examines for violations of the law. This was stated by the regulator’s head of enforcement, David Hirsch.
The industry’s regulatory violations “extend well beyond the two organizations,” the official said.
“We will continue to press charges. These may be brokers, dealers, exchanges, clearing agencies or any other organizations that are active in this area. If they are within our jurisdiction and fail to fulfill their obligations either due to registration or failure to provide adequate or complete information,” he warned.
Hirsch explained that the claims could also affect DeFi projects that would not be helped by the “label [децентрализации]”
The head of the enforcement department complained about the regulator’s heavy workload, which prevents the initiation of new processes. He drew attention to limited funding.
The CFTC called DeFi exchanges a “clear threat”
Unregulated exchanges in the DeFi sector pose a “clear threat” to markets and customers, said Ian McGinley, director of enforcement at the US Commodity Futures Trading Commission (CFTC).
The official noted that DeFi protocols often offer clients trading derivatives, which in most cases are subject to registration with the regulator.
According to him, such platforms are a set of smart contracts that operate without following rules KYC, proper disclosure of information, separation of corporate and user assets and other rules. In many cases, the financial products offered can only be traded by clients of a certain category on compliant platforms.
McGinley also mentioned that even minor errors in the smart contracts of decentralized platforms lead to exploits with the loss of “tens or hundreds of millions of dollars” of client funds.
“The existence of unregulated DeFi exchanges poses a clear threat to regulated markets and the customers protected by the CFTC, and we take this very seriously,” the official said.
Also on ForkLog:
- Stablecoin ℓUSD fell to zero after the DeFi project Linear was hacked.
- A fork of Aave v3 was launched on the Coinbase-supported L2 network.
- Metis will allocate $5 million for the development of DeFi ecosystem protocols.
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