Welcome to Finance Redefined, the weekly newsletter that brings you the latest and most important updates in the world of decentralized finance (DeFi). This newsletter is carefully curated to provide you with the key developments from the past week.
In the world of crypto, we witnessed an interesting turn of events as Solana’s decentralized exchange (DEX) Jupiter surpassed Uniswap in daily trading volume, reaching an impressive $480 million. This surge in trading volume was driven by the excitement surrounding a new memecoin airdrop frenzy.
In a recent report, it was revealed that out of the $2.61 billion stolen from the crypto market in 2023, $674 million has been successfully recovered from 600 large-scale hacks. This recovery amounts to approximately 25% of the stolen crypto. Additionally, Polygon Labs has proposed a framework to classify DeFi as “critical infrastructure,” highlighting its importance in the crypto ecosystem.
The top 100 DeFi tokens had a bullish week, with a significant increase in market value. The total value locked (TVL) in DeFi protocols also witnessed a surge, surpassing $60 billion.
In terms of security, PeckShield, a blockchain security firm, has released data on the losses incurred due to hacks and scams in 2023. The report indicates a 27.78% decrease in losses compared to the previous year, with total global cyber thefts amounting to approximately $2.61 billion (excluding multichain losses).
On the regulatory front, the legal team behind Polygon Labs has proposed a regulatory framework that designates DeFi protocols as “critical infrastructure” and recommends oversight by federal cybersecurity agencies in the United States. This framework aims to combat illicit finance activity in the DeFi space.
The Hong Kong Securities and Futures Commission (SFC) has issued a warning to the public about two potentially risky investment products, the “Floki Staking Program” and “TokenFi Staking Program,” both affiliated with the Floki ecosystem. The SFC emphasized that these products have not received authorization for public sale in Hong Kong.
In summary, the DeFi market has seen significant developments this week, with Solana’s DEX Jupiter surpassing Uniswap, the recovery of stolen crypto, the proposal to classify DeFi as critical infrastructure, and regulatory warnings issued by the SFC. Stay tuned for more updates and insights as this space continues to evolve.