Weekly Update - DeFi and Layer 1 & Layer 2 News (Week 39, 28/09/2022 - 04/10/2022)
Lightning Labs released Taro, enabling asset issuance & transfer on Bitcoin & Lightning. Zksync 2.0 going live in Oct. Hacker exploited Transit Swap returned 70% of stolen funds.
Weekly DeFi Index
This week's market cap and volatility indices were positive at +2.84% and +14.28%, respectively, while the volume index was negative at -15.48%.
Check the latest prices on Crypto.com/Price
DeFi Index Tokens
*DeFI index tokens: AAVE, BAL, CAKE, COMP, CRV, CVX, FXS, JOE, LDO, LINK, MKR, OSMO, REN, SNX, SPELL, SUSHI, UNI, VVS, YFI.
News Highlight
Bitcoin Lightning Network infrastructure firm Lightning Labs released a test version of a software called Taro, which allows developers to create, send, and receive assets on the Bitcoin blockchain. According to Lightning Labs, Taro will make it possible to create Bitcoin and Lightning-native stablecoins that allow for “[instant settlements], low-fee, [and] peer-to-peer transactions without financial intermediaries”.
Transit Swap, a multichain decentralised exchange aggregator, was exploited and lost roughly US$23 million on 1 October because of an internal bug on its swap contract. The hacker’s IP, email address, and associated on-chain addresses were quickly identified with the help of several blockchain security companies. After their efforts, the hacker returned 70% of the stolen assets, equating to roughly $16.2 million, within 24 hours.
Layer-2 solution zkSync announced that its 2.0 mainnet is expected to be deployed around 28 October. According to Matter Labs, the developer behind zkSync, zkSync 2.0 will be the first EVM-compatible ZK rollup (zkEVM) solution to tackle Ethereum’s scalability problems.
DEX Protocols Metrics
Sources: CoinGecko, DeFi Llama, Nomics, Crypto.com Research
Lending Protocols Metrics
*LDR (Loan to Deposit Ratio) = Total Borrowed / TVL
Sources:CoinGecko,DeFi Llama,Crypto.com Research
Charts on Layer-2 Projects
The overall L2 market was relatively stable last week, as its TVL dropped slightly by -0.63%. Optimistic rollup projects fell by -0.47% and zero-knowledge rollups decreased by -4.77%. Ethereum’s TVL change was negative at -0.02%.
The TVL changes for all optimistic rollup projects were negative except Optimism (+2.53%). Arbitrum fell the most by -2.20%.
ZK rollup projects’ TVL movement was mixed. StarkNet’s TVL kept the momentum and surged the most at +5.60%, while Aztec plummeted the most at -12.72%.
Further Reading
SWIFT partners with crypto data provider Chainlink on cross-chain protocol in TradFi play
T-Mobile parent Deutsche Telekom launches Ethereum validator, staking support
IOTA launches Shimmer Network for zero fee asset tokenization
Circle expands USDC stablecoin to five new chains, unveils cross-chain transfer protocol
Jack Dorsey’s TBD teams up with Circle to take US dollar stablecoin savings and remittances global
Ooki DAO moves to raise funds to defend against CFTC lawsuit
Sushi community votes in 'Head Chef' to oversee decentralised crypto exchange
Bitcoin miner Rhodium going public through reverse merger with SilverSun Technologies
MEV bot earns $1M but loses everything to a hacker an hour later
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