Balancer protocol undergoes a frontend attack, resulting in lost funds amounting to $240K, Arbitrum Foundation passes a proposal to disburse $50 million ARB tokens as part of an incentive program and finally, Eclipse introduces their EthereumL2, powered by the Solana Virtual Machine and Celestia.
Massive week for DeFi! Let’s dive deeper into what went down in DeFi this past week.
Total value locked (TVL) across all chains trend downwards slightly as the Fed sends markets lower on hawkish comments. Notable rises include Cosmos-based chain, Kujira, Telegram-backed blockchain, TON, and newly launched BNB Smart Chain L2, opBNB.
Institutional on-chain credit platform, Centrifuge, partners up with Aave as their official partner to allocate part of the Aave treasury to real-world assets (RWAs) after a successful governance vote.
Cross-chain borrowing aggregator, Fuji Finance, shuts down after 2.5 years of operations, citing lack of product-market fit as the main reason. Users will have to close their positions and withdraw their funds by 31st December 2023.
Arbitrum passes a proposal for the Arbitrum Short-Term Incentive Program, which seeks to allocate 50 million ARB tokens to active projects in the ecosystem, in a bid to attract liquidity back to the chain.
Eclipse Foundation introduces Eclipse Mainnet, an Ethereum L2 built on the Solana Virtual Machine (SVM). The chain will utilize Ethereum as a settlement layer, SVM as the execution layer and Celestia for data availability.
Coinbase’s L2 chain, Base, introduces Pessimism, an open-source system designed to help secure chains on the OP Stack as well as other Ethereum Virtual Machine (EVM) chains. The system has been in place since the launch of Base and is now open to other chains for use.
GammaSwap officially launches on Arbitrum mainnet this week, enabling traders and market makers to hedge against their liquidity pool positions or to speculate on volatility of pools via the shorting of any liquidity pool position.
Cross-chain settlement layer, THORChain, expands support to BNB Smart Chain, integrating support for BNB and BEP-20 assets on the protocol. Users can now deposit into liquidity pools or swap their assets from BNB Smart Chain via the protocol.
Liquid staking protocol, Jito, and money market platform, marginfi, come together to release LST, a token which gives users exposure to marginfi’s validator network as well as Jito’s MEV rewards, giving users the best of both worlds.
Cosmos-based chain Canto, introduces plans to migrate to a zero-knowledge powered L2, in a collaborative effort with Polygon Labs using their chain development kit (CDK). The chain aims to bring RWAs to the blockchain in a move dubbed as “neofinance”.
Optimism announces the OP Airdrop #3, sending 19 million OP tokens to 31K unique addresses. The qualifying criterion for this airdrop is the delegation of OP tokens between January and July 2023. Unclaimed tokens from OP Airdrop #1 were also sent directly to eligible wallets in the same week.
Market remains depressed and some might even say boring, but builders gotta build and projects gotta ship. Stay tuned for next week’s edition!
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