Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) news – a newsletter designed to bring you significant developments over the past week.
The second week of November could have been a bullish week, as the Consumer Price Index data released on November 10 indicates weaker than expected inflation. This has resulted in a significant rally for traditional stocks, but the crypto ecosystem is currently battling its own demon.
The FTX turmoil has not only driven down the price of the native FTX token (FTT), but any token associated with Sam Bankman-Fried or his companies. Solana’s SOL, one of the top 10 cryptocurrencies and one of Bankman-Fried’s largest investments, has lost 32% of its market capitalization in the past two days.
Chainlink Labs said it would offer proof of reserve services for struggling exchanges. The new concept emerged after the collapse of the FTX exchange as a measure capable of restoring trust in crypto exchanges through greater transparency.
The DeFi ecosystem has also come under fire for denying user access based on wallet content. Entrepreneur Brad Mills criticized the so-called decentralized ecosystem and said that DeFi had rebuilt everything that was wrong with Wall Street on a blockchain.
It was a bloodbath on Crypto Street last week, with the majority of the top 100 DeFi tokens trading there following the FTX turmoil.
Solana TVL drops 32.4% as FTX turmoil rocks ecosystem
The Total Value Locked (TVL) on the Solana Channel fell 32.4% in the past 24 hours as news stemming from the collapse of FTX sent waves through the crypto ecosystem.
According to DefiLlama, at the time of writing, Solana’s TVL has fallen to $423.68 million, down 32.4% in the past 24 hours, a far cry from its all-time high of 10.17. billion on November 9, 2021.
Chainlink Labs Offers Proof of Reserve Service for Struggling Exchanges
Chainlink Labs offered its Proof of Reserve product as a solution to future trust issues in the crypto exchange market on November 10. In a Twitter thread, Chainlink Labs asked, “Will crypto continue to repeat the mistakes of the traditional black box? financial sector? Or will a better system emerge?
In response to this question, he offered his Proof of Reserve product, which he says is useful “for verifying centralized exchange asset reserves, off-chain bank account balances, cross-chain collateral, real-world asset pools and more. After.”
DeFi comes under fire for denying user access based on wallet content
While DeFi should be an upgrade from traditional funding mechanisms, some believe that denying users access to decentralized exchanges based on their wallet is a step backwards.
In a tweet, entrepreneur Brad Mills criticized DeFi for denying users access to decentralized exchanges due to various factors such as location and wallet content. For this reason, Mills described the future of Web3 as a “surveillance panopticon” and said he had reconstructed everything that was wrong with Wall Street but on a blockchain. In the tweet, Mills also shared an image of a pop-up message from 1inch Network’s decentralized app restricting access due to the wallet address used.
Report: GALA token exploit resulted from public private key leak on GitHub
According to a new post from blockchain security firm SlowMist on November 7, it appears that last week’s token exploits affecting the GameFi Gala Games project resulted from a public leak of applicable security keys on GitHub. As SlowMist recounted, pNetwork, the cross-chain interoperability bridge used by Gala Games on the BNB smart chain, had three privileged roles in its pGALA smart contract.
SlowMist went on to explain that the DEFAULT_ADMIN_ROLE and MINTER_ROLE roles were checked by pNetwork during initialization. Meanwhile, the proxy administration contract was an external address responsible for upgrading the pGALA contract. However, the company posted a screenshot alleging that the plaintext private key of the proxy admin’s owner address was exposed and publicly visible on GitHub.
DeFi Market Overview
Analytical data reveals that the total locked value of DeFi plunged to $41 billion. Data from Cointelegraph Markets Pro and TradingView shows that the top 100 DeFi tokens by market capitalization have seen a bearish crash due to the FTX saga, with the majority of tokens posting double-digit losses over the past week.
Thanks for reading our roundup of this week’s most impactful DeFi developments. Join us next Friday for more stories, ideas and education in this dynamically evolving space.
#Solana #TVL #drops #FTX #turmoil #rocks #ecosystem #finance #redefined