The week was filled with ups and downs for the decentralized finance (DeFi) space, with several tokens registered new weekly highs. Cardano founder admitted he was wrong about his bold prediction on the number of decentralized applications (DApps) in the Cardano ecosystem, and Coinbase Cloud released a new developer tool suite for the Avalanche blockchain.
SushiSwap community introduced a new proposal for a legal structure to mitigate risks for token holders and members of the Sushi protocol. We had another week another DeFi exploit with Li Finance becoming the latest victim. On the price side, most DeFi tokens in the top 100 registered double-digit gains, and the total value locked (TVL) in the DeFi market blossomed to over $130 billion.
Charles Hoskinson cheekily admits he was wrong about DApp rollout
Co-founder of Cardano blockchain Charles Hoskinson has cheekily admitted that his July 2020 forecast of the number of decentralized applications coming to the blockchain has not yet come to fruition.
Referring to his famed July 2020 tweet, Hoskinson tweeted on Wednesday: “Remember when I predicted thousands of assets and DApps on Cardano? Well, I was wrong, there are now millions of native assets issued, and DApps are now in the hundreds. #SlowAndSteady.”
However, he may have misremembered his own tweet, as he had predicted back in July 2020 that by 2021, there would be “hundreds of assets and thousands of DApps” on Cardano. While the number of assets appears to have exceeded his predictions by 2022 thanks to new nonfungible token (NFT) minting protocols, the number of decentralized apps running on the network isn’t so impressive.
Coinbase Cloud launches Avalanche developer tools suite
Web3 developer hub Coinbase Cloud has added a suite of tools to support the Avalanche blockchain and smart contract platform development.
Coinbase Cloud is running an Avalanche public validator node as part of the new support features. This allows Avalanche network participants to stake their Avalance (AVAX) tokens with Coinbase Cloud and delegate power for validating transactions on the blockchain.
SushiSwap community proposes Swiss legal structure to limit DAO liability
SushiSwap, a community-led suite of decentralized finance (DeFi) tools, plans to implement a legal structure aimed at mitigating risks for token holders and members of the Sushi protocol. Sushi’s new legal structure will be based on a community-approved proposal from March 20 that cited the need for an association or foundation to help provide legal clarity and administrative support for SushiDAO.
According to proposer and member of the SushiSwap community Tangle, the intended foundation will play a key role in limiting the liability for contributors, driving Sushi’s future growth.
Li Finance protocol loses $600,000 in latest DeFi exploit
The Li Finance swap aggregator has experienced a smart contract exploit leading to the loss of around $600,000 from 29 users’ wallets.
The exploit took place at 2:51 am UTC on Sunday. The attacker was able to extract varying amounts of 10 different tokens from wallets that had given “infinite approval” to the Li Finance protocol. Among the stolen tokens were USD Coin (USDC), Polygon (MATIC), Rocket Pool (RPL), Gnosis (GNO), Tether (USDT), Metaverse Index (MVI), Audius (AUDIO), AAVE (AAVE), Jarvis Reward Token (JRT) and Dai (DAI).
DeFi Market Overview
Analytical data reveals that DeFi’s total value locked has seen a $10 billion jump over the last week, reaching $130.6 billion at the time of writing.
Data from Gist Vile Markets Pro and TradingView reveals that DeFi’s top 100 tokens by market capitalization performed reasonably well across the last seven days, with many registering a double-digit gain.
The weekly performance of the majority of the DeFi tokens in the top-100 remained optimistic, with double-digit trades in the green. LoopRing was the biggest gainer over the past week, outperforming the majority of the altcoins with a 62% surge. ConvexFinance was the second-highest gainer with a 28% surge, followed by Uniswap with 19% and Theta Network at 17%.
Thanks for reading our summary of this week’s most impactful DeFi developments. Join us again next Friday for more stories, insights and education in this dynamically advancing space.