Ethereum DeFi Handbook Unveiled by Industry Organization
A recent edition of The Decentralised newsletter on July 23 featured insights on the DeFi space. Here are some highlights that caught attention recently:
EigenLayer, a protocol that initiated “restaking,” had a soaring start in 2023. However, concerns raised by Ethereum co-founder Vitalik Buterin led EigenLayer to impose limitations on user deposits initially. Eventually, these restrictions were lifted, leading to significant growth. By March 1, the total crypto value in EigenLayer reached nearly $10 billion, showcasing substantial expansion within a short period. Despite this, a decline to just under $16 billion followed, attributed to a reduction in airdrop farmers’ participation post-restaking airdrops.
In the realm of DeFi regulations, the Enterprise Ethereum Alliance introduced the DeFi Risk Assessment Guidelines, offering detailed insights into managing risks associated with DeFi activities. This initiative aims to assist DeFi protocols in adhering to compliance standards and facilitate regulators in drafting regulations that promote innovation without stifling growth. Notably, regulators in the UAE and the EU have already started leveraging these guidelines.
The Multichain incident, involving a $125 million hack and subsequent closure due to pressure from Chinese authorities, raised suspicions of internal involvement. Fantom Foundation CEO Michael Kong expressed doubts about the situation, especially after the arrest of Multichain’s CEO Zhaojun He. While investigations are ongoing, uncertainties persist regarding the true nature of the hack and potential insider activities.
Political memecoins experienced significant fluctuations following President Joe Biden’s decision not to seek reelection, with tokens like Doland Tremp and Jeo Boden reacting sharply. Meanwhile, Kamala Horris saw a substantial surge, reflecting the impact of political events on the crypto market.
In the DeFi governance landscape, various proposals are under consideration, such as Arbitrum’s Gaming Catalyst Program council appointment and the potential removal of a DeFi aggregator for grant misuse. Additionally, Aave is contemplating adding Ethena’s USDe as collateral, indicating ongoing developments in the DeFi ecosystem.
As Ethereum celebrates its 10th anniversary, the platform’s growth and evolution over the years are noteworthy, with significant milestones marking its journey in the crypto space. Innovations like Binance’s crypto passport offer unique solutions for KYC processes, emphasizing the ongoing efforts to bridge the gap between traditional regulations and decentralized finance.
For more updates and insights on the DeFi sector, stay tuned for further developments and emerging trends in the evolving crypto landscape. For tips or inquiries related to DeFi, contact aleks@dlnews.com.
