Weekly DeFi Report: Drama, Drama…
Summary
Market is generally trading steady, and hovering around the current levels of BTC 20k and ETH 1,100 as fears of further liquidations subside. However, situations remain extremely fluid, and it is rather difficult to call a bottom here although much of bad news has probably been priced in already.
In the last 7 days:
Out-performers in the Top 100 :
XRP (+20%), SOL (+27%), SHIB (+28%), MATIC (+55%), AVAX (+22%), LTC (+24%), UNI (+42%), ATOM (+31%), EGLD (+23%), AXS (+24%), APE (+32%), SAND (+26%), MKR (+33%), SNX (+71%), BAT (+36%), WAVES (+46%)
Under-performers in the Top 100:
XCN (-1%), KCS (-4%), FLEX (-10%)
In the DeFi space, TVL numbers are generally higher with rebound in token prices, with Solana (+6%), Cronos (+9%) leading the increase. However, BNB Chain (-1%), Fantom (-11%) and Arbitrum (-21%) saw a hefty decline in TVL.
Deep Dive
Solend Drama
More about the drama: Solend, a money market lending protocol and biggest dApp on Solana, passed a governance proposal to take control of a whale’s account holding ~$6M SOL position, then reversed course after the move was heavily criticized. Solend defended the move saying that it would be difficult for the market to absorb the impact of whale’s liquidation since liquidators generally market sell on DEXs. Titled SLND1, the proposal passed with more than 97% support (with a single large whale vote), but the dispute came from the fact that the ‘DAO’ was created just for this proposal, and the voters were given less than a day (in a weekend). Also, the irony of <$1M vote controlling >$100M of position was pointed out as well.
Harmony Bridge $100M exploit
More about the exploit: The main bridge between Harmony and other L1s such as ETH, BNB Chain and Bitcoin, has been exploited, and any asset that came through the bridge is no longer backed; Harmony has since notified exchanges and stopped the Horizon bridge to prevent further transactions. The security of Horizon Bridge was predicated on a multisig wallet comprising of 4 addresses.
One way to flee the Harmony ecosystem is to use the Synapse bridge and bridge $JEWEL token from Harmony to DFK Chain — this has resulted in demand for $JEWEL on Harmony so far.
Dydx to launch its own blockchain
What’s the deal: derivatives DEX, DYDX, announced plans to develop its own blockchain using the Cosmos SDK and Tendermint PoS consensus protocol. The new blockchain would allow validators to stake DYDX token to secure the network. Currently, DYDX is built on Ethereum’s Zk Rollup solution. ATOM is up 15% on the news.
Following
Big Money Raises
