Weekly DeFi Update (Week 35, 30/09/2021 - 05/09/2021)

Arbitrum Mainnet Launched

Market Recap

According to DeFi Pulse, TVL in DeFi protocols reached nearly $100B on Sunday. According to CoinGecko, market capitalisation of top 100 DeFi tokens now stand at $140B at time of writing, inching closer to the all-time high of $150B in May 2021. Their dominance in the crypto space stands at 5.8%.

Overall, both the price and volume indices increased (by 15.96% and 16.51% respectively), meanwhile the volatility index decreased by 48.40%.

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Spotlight of the Week

Arbitrum Mainnet Launched (1/09/2021) 

Highly anticipated L2 scaling platform Arbitrum has launched on mainnet. Current ‘blue-chip’ DeFi projects building on Arbitrum include Aave, MakerDAO and Uniswap. At the same time, Offchain Labs, the company behind Arbitrum, also raised a $120M series B funding round, led by Lightspeed Ventures Partners, with other notable names such as Alameda, Polychain, Panterra, and Ribbit Capital, among others.

Price Index

All tokens’ price increased except for LRC (-11.86%).

Top 3 gainers: LINK (+27.16%), REN (+24.5%), COMP (+25.74%)

Volume Index

Top 3 increases: REN (+161.69%), UNI (+78.06%), COMP (+42.06%)
Top 3 decreases: LRC (-59.77%), NXM (-37.27%), UMA (-19.73%)

Volatility Index

All tokens’ volatility index decreased

Top 3 decreases: UMA (-78.76%), MKR (-71.20%), LRC (-65.35%)

Notable Events in DeFi

Celo launches $100M DeFi education fund (30/08/2021)

Celo launches a $100M DeFi education fund titled, ‘DeFi for the People’, alongside DeFi projects such as Aave, UMA, Curve, Sushi and Pooltogether, and more, with infrastructure and education partners such as Chainlink, Rabbithole, The Graph, among others. Following the news, Celo token price jumped over 200%, reaching its ATH.

Cream Finance DeFi Platform Loses $19M in a Flash Loan Attack (01/08/2021)

DeFi protocol Cream Finance suffered a flash loan attack resulting in the loss of nearly $19M on the V1 Ethereum marketplace. According to security firm Peckshield, the hacker took advantage of a reentrancy bug in the AMP token on Cream Finance.  Following the attack, AMP token price fell nearly 13% within 24 hours, with Cream’s native token dropping 5%. According to the official post-mortem, the exploit was possible due to the way Cream Finance integrated the AMP token into their protocol. Cream Finance has announced that they will be “replacing all stolen funds so that there is no liquidity issue for users”.

SEC Investigates Uniswap Labs (3/09/2021) 

On Friday, the WSJ reported that the SEC is investigating the largest decentralised exchange and automated market maker, Uniswap. According to ‘people familiar with the matter’, the SEC Is looking at how investors use Uniswap and how it is marketed. This follows SEC Chairman Gary Gensler’s tightening stance towards DeFi platform regulations.

Top DeFi News

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