this past week, the decentralized finance (DeFi) ecosystem was governed by the decentralized autonomous organizations (DAO) and the new launches of funds for the growth of the Web3 ecosystem. The total number of DAOs increased eightfold, while Solana launched a $100 million DeFi fund.
Optimism, an Ethereum layer 2 protocol that Vitalik Buterin recently praised for its governance model, lost 20 million tokens due to layer 1 and layer 2 address mix-up. A leaked 600-page copy of an Ethereum bill US cryptocurrency has also caught the attention of the community as it proposes strong regulatory scrutiny for DeFi and DAO.
The top 100 DeFi tokens showed a mixed market performance, with several tokens posting double-digit gains over the past seven days, while a significant majority remained down on weekly charts.
The number of DAOs is multiplied by 8 along with a spike in votes and proposals
The total number of decentralized autonomous organizations (DAOs), the number of government proposals submitted, and the number of votes cast have all seen staggering growth over the last 12 months.
Data compiled by Snapshot Labs and shared by Electric Capital engineer Emre Caliskan in a Thursday tweet highlighted that the number of DAOs has increased more than eightfold, from 700 in May 2021 to 6,000 today. The number of proposals has multiplied by 8.5 and the number of total votes has multiplied by 8.3 in the last 12 months, going from 448,000 to 3.7 million.
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Solana Ventures Creates $100M Fund for GameFi and DeFi in South Korea
Solana Ventures and the Solana Foundation have created a $100 million fund to support the growth of non-fungible tokens (NFTs), blockchain games, and DeFi projects in South Korea.
In addition to supporting projects built on Solana, the fund will help keep some Terra-based projects afloat following the collapse of that ecosystem last month.
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Leaked Copy of US Bill Shows DeFi and DAO Under Regulatory Lens
A leaked copy of a US cryptocurrency bill began circulating on Twitter early Tuesday. The 600-page copy of the leaked bill highlights some of the key areas of concern for regulators, including DeFi, stablecoins, decentralized DAOs, and crypto exchanges.
Protecting users seems to be the primary goal of regulators, with policies aimed at requiring any cryptocurrency platform or service provider to be legally registered in the United States, be it a DAO or a DeFi protocol.
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Optimism Loses 20 Million Tokens After L1 and L2 Mixup Exploded
The honeymoon period of the layer 2 scaling solution Optimism has been cut short, as an exploit in its market maker’s smart contract has caused the loss of 20 million OP tokens.
The exploit took place on May 26, but has just been communicated to the community. One million tokens valued at about $1.3 million were sold on Sunday. An additional one million tokens valued at around 730,000 were transferred to Vitalik Buterin’s Ethereum address on Optimism earlier today at 12:26am UTC. The remaining tokens are dormant for now, but could be sold at any time or used to influence government decisions.
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DeFi Market Overview
Analytical data reveals that DeFi Total Value Locked posted a slight decline over the past week, with the value dipping back below $80 billion. Data from Cointelegraph Markets Pro and TradingView reveals that the top 100 DeFi tokens by market cap saw a week filled with volatile price action, but broke out of the downtrend in the past two days.
Analytical data reveals that DeFi’s total value locked registered a slight dip over the past week, with the value dipping below $80 billion again. Data from Cointelegraph Markets Pro and TradingView reveals that DeFi’s top-100 tokens by market capitalization registered a week filled with volatile price action but broke out of the bearish trend over the past couple of days.
Most DeFi tokens in the top 100 ranking by market cap traded in the green, with Chainlink (LINK) the biggest gainer with a 29% rise, followed by Theta Network (THETA) with a 17.2% rise. Tezos (XTZ) posted a 14.14% gain, while PancakeSwap (CAKE) grew 1.23% in the last seven days.
Thanks for reading our roundup of this week’s most impactful DeFi happenings. Join us again next Friday for more stories, perspectives, and education in this dynamically moving space.
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