Last week in the decentralized finance (DeFi) ecosystem there was a lot of news from the point of view of the adoption and developments of the protocols. The European Commission added a new chapter on DeFi, showing the growing impact of the nascent ecosystem, while a county in the US state of Virginia wants to put its pension fund into a DeFi yield.
DeFi exploits are back in the spotlight, as recent research shows that in the first two quarters of 2022, DeFi protocols have lost $1.6 billion to various exploits. Hacker Rari Fuze, who made off with $80 million worth of funds, was offered a $10 million reward.
DeFi tokens also rose again towards the end of last week. However, the overall weekly performance remained in the red.
European Commission Report Suggests Rethinking DeFi Regulatory Approach
Analysts from the European Commission showed an unexpected understanding of how DeFi works, defining it as something different from the traditional financial system and acknowledging that it would require a rethinking of the approach to regulation.
On Monday, Presight Capital’s cryptocurrency business advisor and longtime European regulation expert Patrick Hansen shared some crucial details from the European Commission’s “2022 European Financial Integration and Stability Review.” The report, dated April 7, contains a 12-page chapter on DeFi, in which the authors show a no-nonsense approach to the topic.
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Virginia County wants to allocate pension funds to yield farming in DeFi
Fairfax County in Northern Virginia has already invested a portion of its pension funds in cryptocurrency and blockchain startups. Now, he is mulling more involvement in yield farming in DeFi.
Fairfax County Police Pension System Chief Investment Officer Katherine Molnar said Tuesday at the Milken Institute Global Conference that the system intends to fund two new crypto-focused hedge fund managers in the next three weeks.. A decision will be made in the coming days that, if approved, would be the first time that pension fund money was used in DeFi.
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Rari Fuze hacker posted a $10 million bounty by Fei Protocol to return $80 million loot
DeFi platform Fei Protocol offered a $10 million bounty to hackers in an attempt to trade and recover a significant portion of stolen funds from various Rari Fuse pools worth $79,348,385.61, nearly $80 million.
Saturday, Fei Protocol informed its investors of an exploit on numerous Rari Capital Fuse pools, while asking the hackers to return the stolen funds in exchange for a $10 million reward and a “no questions asked” commitment.
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Over $1.6 Billion Mined in DeFi So Far in 2022
The DeFi space has been plagued by hacks, exploits, and scams so far this year, with more than $1.6 billion worth of crypto stolen from users, exceeding the total amount stolen in 2020 and 2021 combined.
Analysis from blockchain security firm CertiK revealed the statistics on Monday, showing that the month of March had the highest value stolen, at $719.2 million, more than $200 million more than was stolen in all of 2020. The March figure is largely due to the Ronin Bridge exploit, in which attackers made off with more than $600 million in cryptocurrency.
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Solana and Moonbirds Help NFT Market Reach $6.3 Billion Monthly Trading Volume
According to DappRadar’s monthly report, the NFT market recorded a multi-month trading volume of $6.3 billion, up 23% from March, surpassing the $6 billion mark for the third time in its history.
The Moonbirds contributed $500 million of trading volume, while the Solana blockchain recorded nearly $300 million in NFT trades with a 91% increase month over month.
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DeFi Market Landscape
Analytical data reveals DeFi total value locked remained in a similar range to last week at $123 billion, despite a bullish surge towards the end of the week. 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 and ongoing bearish pressure.
Most of the DeFi tokens in the top 100 rankings turned green on the daily chart, but their weekly performance remained bearish, save for the Curve DAO token (CRV) which is up 4% over the past week.
Thanks for reading our roundup of this week’s most impactful DeFi developments. Join us again next Friday for more stories, insights, and education in this fast-paced space.
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