Welcome to Finance Redefined, your weekly dose of critical information about Decentralized Finance (DeFi) – a newsletter designed to inform you of important developments in the past week.
The TranitSwap hacker, who escaped with $23 million, returned 70% of the stolen funds. The return was made possible thanks to the quick actions of network analysis companies, which were able to find the IP address of the hacker and other personal data.
Another Elliptical Research report notes that DeFi bridges and decentralized exchanges (DEXs) are becoming a new frontier for crypto-laundering.
Bitcoin.com CEO Dennis Jarvis believes that Bitcoin can be a bridge that brings users into the field of decentralized finance.
With the strengthening of the US dollar, even DeFi protocols are looking to invest in US dollars, as MakerDAO announced that it continues to invest $500 million in government bonds.
The top 100 DeFi coins by market cap had a mixed week in terms of price action, with most coins trading in the red thanks to a market correction over the weekend. However, many symbols managed to stay positive on the weekly charts.
Transit Swap ‘hacker’ recovers 70% of $23 million in stolen funds
The quick response of a number of blockchain security companies helped recover about 70% of the $23 million leverage from the DEX Transit Swap pool.
DEX pool lost funds after a hacker exploited an internal flaw in the exchange contract on October 1st, prompting a quick response from the Transit Finance team, along with security firms Peckshield, SlowMist, Bitrace and TokenPocket, who were able to respond quickly . The hacker’s IP address, email address and associated string addresses.
Crypto-laundering “New Frontiers” includes bridges over networks and DEX: Elliptic
A new study from blockchain analytics and crypto compliance firm Elliptic reveals the extent to which bridging chains and DEXs have removed barriers for cybercriminals.
In their Oct. 4 report, “The State of Network Crime,” Elliptical researchers Eray Arda Akartuna and Thibaut Madeleine take an in-depth look at what they call the “new frontier of crypto-money laundering.” The report summarizes that the free flow of capital between cryptoassets is now much smoother due to the emergence of new technologies such as bridging and DEXs.
Bitcoin Can Solve DeFi Adoption Crisis, CEO Claims
As the decentralized finance space continues to suffer from hacks, people are becoming less interested in jumping in and interacting with DeFi. But according to Dennis Jarvis, CEO of Bitcoin.com, there is a way to pay DeFi through Bitcoin.
In a keynote speech at the Dubai Blockchain Economic Summit 2022, Jarvis noted that massive losses in investor funds, such as the collapse of Terra and the Axie Infinity Ronin hack, made DeFi unattractive to potential users. However, the CEO believes that by using Bitcoin as a hook, DeFi can overcome the registration crisis caused by its deteriorating reputation.
MakerDAO invests $500 million in government bonds and notes
MakerDAO, the governing body of the Maker Protocol, has taken the first step in its plan to reallocate $500 million of its Daicollateral stablecoin reserves to short-term US Treasuries and corporate bonds.
The Decentralized Autonomous Organization (DAO) voted to approve a $1 million pilot agreement on October 6 following a vote by Maker leaders, with the remaining funds redistributed shortly after community confirmation.
DeFi Market Overview
Analyst data shows that the total value of DeFi locked out is marginally lower compared to last week. At the time of writing, TVL is worth approximately $52.63 billion. Data from Cointelegraph Markets Pro and TradingView show that the top 100 DeFi coins by market cap had a mixed week, with many coins showing a drop over the weekend, while a few others managed to trade in the green.