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.
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%.
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