Weekly Update - DeFi and Layer 1 & Layer 2 News (Week 14, 30/03/2023 - 05/04/2023)
Aave community votes on Polygon zkEVM and Starknet expansion. Arbitrum under fire for AIP-1 proposal, to be split into parts. Allbridge exploit resolved as hacker returns most of the stolen funds.
Weekly DeFi Index
This week's market cap index was positive at +13.79%, while volume and volatility indices were negative at -1.13% and -50.03%,respectively.
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Trading and deposit activity on decentralised crypto exchange Trader Joe’s Arbitrum venue has spiked following the rollout of a liquidity incentives programme. Trader Joe also announced plans to upgrade Liquidity Book, its trading engine automated market maker, to V2.1 soon.
News Highlights
The majority of the Aave community votes in favour of expanding to Polygon zkEVM, and is voting to potentially add Starknet to the growing list of blockchains for Aave implementation as well.
The Arbitrum Foundation is under fire for AIP-1, a proposal to allocate 750 million ARB tokens (valued at nearly US$1 billion) to its special grants programme. ARB tokenholders voted against the proposal. However, 50 million ARB tokens have already been transferred on-chain, which caused a stir from the community. The foundation confirmed that it will break up the governance package into separate parts to be voted on instead after community feedback.
A week after its launch, zkSync Era reportedly experienced block failure due to a malfunction in its block queue database. The team has confirmed that the issue has been resolved within a five-minute timeframe and proposed decentralisation of the platform as a long-term solution.
DeFi cross-chain protocol Allbridge was exploited for over $570,000 on 2 April, after which the bridge was temporarily shut down for further investigation. Allbridge recently tweeted that the hacker has returned 1,500 BNB tokens and has accepted its offer of a ‘white hat bounty’.
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