Welcome to Finance Redefined, your weekly dose of essential information on decentralized finance (DeFi)a newsletter prepared to offer you the most important events of the last week.
The long-awaited airdrop of the Layer 2 scalability protocol, Arbitrum, has been grabbing headlines all week. The hype around the token has led to exploits, fake airdrops, and even a significant increase in volume for other Layer 2 protocols.
Aside from the uproar caused by Arbitrum, the Euler Finance hack has also registered news. The person or group behind the attack returned a portion of the funds after the protocol’s developers placed a million-dollar bounty on his head. Some of these funds were also moved to blacklisted North Korean addresses.
Although we all read a lot about DeFi exploits from time to time, a recent report sheds light on the millions of dollars paid for insurance in 2022. Ninety percent of all DeFi insurance claims paid since its inception were distributed in 2022.
In another development around Ethereum staking, MetaMask Institutional has introduced a new staking marketplace to give institutional users access to solo Ether (ETH) staking.
The top 100 DeFi tokens had a mixed week in terms of price action. Most of them traded in the green on the weekly charts, while others lost some gains during the market volatility towards the end of the week.
Community warns of fake Arbitrum airdrops
The upcoming release of ARB tokens by Arbitrum, Ethereum’s Layer 2 scaling solution, appears to have become a popular target for scammers, with the community alerting to hundreds of phishing scams aimed at tricking cryptocurrency users. . The hype around the airdrop has sparked more than one attempt by scammers to organize fake airdrops of tokens with the aim of stealing funds from the victims before the official event.
He hype around the airdrop it has also helped another Layer 2 solution, zkSync, post significant weekly growth. Following the announcement of the Arbitrum airdrop, eligible cryptocurrency users they are already selling the tokens in the OTC markets.
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DeFi insurance claims amounted to USD 34.4 million in 2022
According to a March 21 report from DeFi analytics firm OpenCover, insurers paid out $34.4 million in claims in 2022. Since OpenCover began tracking the data, only $36.9 million has been paid out. Notable payouts include $22.5 million during the May 2022 Terra ecosystem collapse and $4.7 million for the November 2022 FTX collapse.
Despite the increase in payments, OpenCover said that according to its data, only $231 million worth of funds had been secured in DeFi protocols, representing only 0.5% of the total value locked in the DeFi sector. Cointelegraph reported on Jan. 5 that DeFi security attacks increased 47.4% year-on-year in 2022up to USD 3,640 million.
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Euler Finance saga sees new developments
Ethereum-based lending protocol Euler Finance could be one step closer to recovering the funds stolen in a $196 million flash loan attack last week, with private conversations now started with the attacker.
In a on-chain message addressed to Euler on March 20, days after sending funds to a North Korean address flagged as dangerous, the alleged hacker claimed he wanted to “reach an agreement” with Euler.
On March 18, some 3,000 ETH ($5.4 million) was returned to the Euler Finance deployer address from the hacker’s address. Blockchain researcher PeckShield identified three transactions that were used to send the funds.
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Institutional MetaMask Launch Solo ETH Staking Market
MetaMask Institutional will become a conduit for the creation of new Ethereum validators after announcing a new betting market for its institutional clients.
Institutions using MetaMask’s institutional-grade wallet and custody service will be able to manage ETH staking through four providers: ConsenSys Staking, Allnodes, Blockdaemon, and Kiln. The marketplace aims to simplify access and management of solo staking, allowing institutions to become validators of the Ethereum network.
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DeFi Market Review
Analytical data reveals that the total market value of DeFi surpassed $50 billion last week. Data from Cointelegraph Markets Pro and TradingView shows that the top 100 DeFi tokens by market capitalization had a bullish week, with most tokens trading in the green, save for a few.
Thanks for reading our roundup of this week’s biggest DeFi events. Join us next Friday for more stories, perspectives, and information about this ever-evolving space.
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