Weekly Update - Defi and Layer 1 & Layer 2 News (Week 31, 03/08/2022 - 09/08/2022)

Aug 10, 2022

This week's price, volume, and volatility indices were negative at -1.17%, -38.88%, and -52.65%, respectively.

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The U.S. Treasury Department sanctioned Tornado Cash, an Ethereum coin mixer. Tornado Cash was accused of being used to launder more than US$7 billion worth of virtual currency since its creation in 2019. In the announcement, the regulatory body blacklists the Tornado Cash website and a list of Ethereum addresses, banning American citizens from using the tool or transacting with these addresses.
Over 8,000 Solana hot wallets, including Phantom, Slope, and TrustWallet, were compromised last Wednesday and nearly $4.5 million worth of tokens have been drained. Solana developers said they have identified the root cause of the hack: compromised private keys “created, imported, or used in Slope mobile wallet applications”.
Uniswap raised a proposal to form a Uniswap Foundation based in the United States, which will cost US$74 million. The proposal gained mixed feedback from the community.

Overall, the L2 market saw +12.16% growth over the past week. Optimisitic rollup and zero-knowledge rollup projects gained +19.34% and +1.01%, respectively, while Ethereum’s TVL rose +6.08%.

TVL of optimistic rollups continued to surge and was over US$4.7 billion. Again, Optimism led the growth (+40.58%) in TVL, followed by Metis Andromeda (+20.14%) during the week.

TVL of ZK rollups was stable in the last week with over US$859 million. ZKSwap was under the spotlight as its TVL of version 2.0 and version 1.0 surged +47.23% and +16.25%, respectively.

Crypto.com DeFi Research