This week's market cap, volume, and volatility indices were positive at +3.77%, +7.66%, and +82.54%, respectively.

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The rally of tokens like LDO and FXS that are from ETH liquid staking platforms may be driven by Ethereum's upcoming Shanghai upgrade. Expected to happen in March 2023, the Shanghai upgrade will allow ETH withdrawals for tokens that have been staked in the Beacon Chain since December 2020.

DEX aggregator 1inch released a protocol upgrade called Fusion, which can allegedly support users’ custom swap orders without gas fees.
Liquid staking protocol Lido Finance overtook MakerDAO and became the highest TVL DeFi protocol. The spike of the protocol’s TVL benefits from Ethereum’s Merge in September 2022. Additionally, the availability of ETH withdrawals in Ethereum's upcoming Shanghai upgrade also drove a surge in the TVL on liquid staking platforms and the value of their tokens.
SushiSwap’s CEO Jared Grey proposed new SUSHI tokenomics in an attempt to revive the protocol amid a liquidity crunch. Under the new tokenomics model, SushiSwap will introduce token burn, time-locked tiers, and stop revenue sharing with non-liquidity providers.
According to its CTO Matthew Lilley, Sushi will deprecate Kashi (Sushi Lending) and MISO (Sushi Launch Pad) because of low public interest and the significant effort that went into maintaining these two products. Sushi developers will focus more on the protocol’s DEX product.
Security auditing firm Debaub found a critical vulnerability in Uniswap’s Universal Router smart contract that allowed third parties to steal funds during token transfers. No funds were stolen, and the bug was patched by the Uniswap team. Additionally, Debaub received a bug bounty of US$40,000 in USDC for the discovery.

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Weekly Crypto News about DeFi, NFT, and crypto market

Weekly Update - DeFi and Layer 1 & Layer 2…