Weekly Update - DeFi and Layer 1 & Layer 2 News (Week 11, 09/03/2023 - 15/03/2023)
Ethereum’s Shapella upgrade executed on the Goerli testnet. MakerDAO passes emergency proposal to mitigate risks around stablecoins. Aptos launches NFT bridge on Wormhole.
Weekly DeFi Index
This week’s market cap, volume, and volatility indices were positive at +5.39%, +30.28%, and +220.53%, respectively.
On 13 March, decentralised exchange Curve Finance experienced an exponential surge in trading volume across 24 hours, reaching a US$7 billion historic high following the USDC depeg.
News Highlights
The final dress rehearsal for Ethereum’s Shanghai upgrade, also known as Shapella, was executed on the Goerli testnet on Tuesday. This brought the upgrade closer to its final stage: launching on the mainnet sometime in April.
MakerDAO delegates are voting on a debt ceiling breaker proposal, an ‘urgent executive proposal’ that allows the DAO to set the debt ceiling for individual collateral to zero quickly. By setting the debt ceiling to zero, MakerDAO will be better poised to prevent situations where the protocol’s stablecoin is adversely impacted by significant market volatility.
Decentralised exchange dYdX passed a governance vote to reduce its trading rewards by 45%. The proposal aims to increase the amount of tokens in the protocol’s reward treasury, and has received over 25 million votes supporting it.
Layer-1 blockchain Aptos launched its NFT bridge on Wormhole, which will enable users to seamlessly bridge NFTs between Aptos and any of its supported chains without double-wrapping the asset.
Sui blockchain developer Mysten Labs signed a deal with cloud tech giant Alibaba Cloud. The partnership will provide archival node services and cloud infrastructure for Sui’s testnet developers. This will also allow for collaboration between both firms to develop Web3 ecosystems and explore opportunities in the payments space.
In a proposal posted on its governance forum, Lido Finance and partner Mixbytes proposed sunsetting its liquid staking service on Polkadot and Kusama on 1 August.
Hedera, a decentralised Proof of Stake public ledger, shuts down network services following ‘network irregularities’, causes of which have not been confirmed at this time.
DeFi lender Euler Financesuffered from a $197 million flash loan exploit on Tuesday, which reportedly stemmed from a vulnerability in a smart contract function called “donateToReserve”. Euler shared that it has disabled the vulnerable module and is working with law enforcement and the broader Ethereum security community to recover the stolen funds.
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