Weekly Update - DeFi and Layer 1 & Layer 2 News (Week 47, 23/11/2022 - 29/11/2022)
Ethereum staking withdrawals enter the testnet stage. Gas usage on Ethereum L2 networks reaches record monthly high. Aave proposed governance changes after failed US$60M short attack.
Weekly DeFi Index
This week's market cap and volume indices were positive at +8.02% and +5.48%, respectively, while volatility index was negative at -4.55%.
Check the latest prices on Crypto.com/Price
*DeFi index tokens: AAVE, BAL, CAKE, COMP, CRV, CVX, FXS, JOE, LDO, LINK, MKR, OSMO, REN, SNX, SPELL, SUSHI, UNI, VVS, YFI.
New Project Spotlight
Crypto.com announced Ledger support for its Crypto.com Wallet Extension. Users can now import and confirm transactions using their Ledger hardware wallet, allowing for a more secure experience when interacting with dApps.
Ledger self-custodial wallets also now support CRO holdings on Cronos (in addition to the Crypto.org Chain). Users can easily manage their CRO through the Ledger Live app from the security of their Ledger wallets.
As of 29 Nov 2022
Sources: DeFi Llama, Crypto.com Research
Note: TVL excludes governance token staking, staked LP tokens that one of the coins in the pair is governance token, double counting (TVL feeds into another protocol), borrowing, liquidity staking, and vesting
As of 29 Nov 2022
Sources: CoinGecko, DeFi Llama, Crypto.com Research
News Highlight
Ethereum staking withdrawals have entered the testnet stage. Developers have launched a multi-client devnet to test the unlocking of Ether staked, and the withdrawal will be part of the Shanghai upgrade.
Gas usage on Ethereum Layer-2 networks just hit a record all-time monthly high, seeing over 103 billion gas used — a huge leap from 33.2 billion at the start of the year. The fees were mainly used to validate transactions and operate bridges in Layer-1.
In light of the recent failed US$60 million short attack on Aave, the project’s contributors proposed governance changes to cover $1.6 million in Aave’s bad debt. Another separate proposal has been drafted, calling for temporarily freezing certain assets on the platform to prevent further market attacks.
Compound Finance users have also passed a proposal to impose new borrow limits on 10 of its assets, with the goal to reduce risks relating to liquidity, market changes, and price manipulation and exploits, among others.
MakerDAO's governance forum has voted to hike the DAI savings rate up to 1%. The proposed changes aim to ensure liquidity to maintain DAI stability and to take the staking yields to be on par with yield offered by other DeFi protocols such as Aave and Compound.
DEX aggregator 1inch releases Rabbithole, a new feature that will protect users from ‘sandwich attacks’ — a type of crypto front-running that involves controlling asset prices by placing two orders and surrounding pending transactions. Rabbithole works by sending swap transactions directly to validators while avoiding the mempool, where it is vulnerable to sandwich bots’ attacks.
Ethereum software firm Consensys updated its privacy policy, outlining how it “collects, uses, shares, and stores personal information of users of its websites” through its on-chain wallet service Metamask.
Recent Research Reports
Argentina 2022 Survey: Argentines Are Increasingly Keen to Adopt Cryptos and NFTs: Crypto.com recently commissioned a survey of more than 2,000 Argentines to find out more about their investment preferences, knowledge, and opinions on crypto and NFTs.
Research Roundup Newsletter (October 2022): In this issue, we cover our recent Bloomberg Terminal integration, a special research report for the Singapore Fintech Festival, and feature articles on NFT financialisation and utility.
Alpha Navigator (October 2022): We look at crypto industry performance in October, including ETH’s short-term correlations with equities reducing. Is the Fed pivoting on rate tightening policy?
Disclaimer
The information in this report is provided as general market commentary by Crypto.com and its affiliates, and does not constitute any financial, investment, legal, tax, or any other advice. This report is not intended to offer or recommend any access to products and/or services. While we endeavour to publish and maintain accurate information, we do not guarantee the accuracy, completeness, or usefulness of any information in this report nor do we adopt nor endorse, nor are we responsible for, the accuracy or reliability of any information submitted by other parties.
This report is not directed or intended for distribution to, or use by, any person or entity who is a citizen or resident of, or located in a jurisdiction, where such distribution or use would be contrary to applicable law or that would subject Crypto.com and/or its affiliates to any registration or licensing requirement.
The brands and the logos appearing in this report are registered trademarks of their respective owners.
Thank you for reading! We hope you find our Weekly DeFi and Layer 1 & Layer 2 News Update enlightening!
Hungry for more? Visit our Research Hub and University to access other insightful crypto research!
Share with a friend if you like our email!
My wallet
01636032045
Ledger is an interesting project 🤔