Weekly DeFi Update (Week 39, 27/09/2021 - 03/10/2021)

Price Index Up; Volatility, Volume Indices Down. Compound Suffers $90M Losses in Accidental Payout.

Key Takeaways

  • The markets are generally showing positive recovery as total value locked in DeFi has increased back up from under $80BN TVL to almost $90BN TVL as of time of writing. (ref)

  • Bitcoin touches $49K, catalysing an upward trend for altcoins such as LUNA, FRONT, KEEP, and ETH. 

  • The Compound Protocol suffers $90M loss due to accidental COMP token payout to COMP holders. Founder Leshner follows with a plea for funds to be returned and subsequent threat of ‘doxxing’ those who do not return funds. 

  • Data shows increased dex activity and little Bitcoin regional (East Asia) outflow, suggesting that crypto holders are shifting their cryptocurrencies within the region, not in centralised exchanges but in DEXes like Uniswap and dYdX which have seen increased activity. The market expects that crypto users are flocking towards DeFi amid tighter crypto currency regulation in certain markets. (ref)


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Notable Events in DeFi

Compound Founder Apologises for ‘Bone-headed’ Tweet

Compound Founder, Robert Leshner, apologies for ‘bone-headed’ tweet following the accidental loss of $90M on the protocol as erroneous COMP tokens were accidentally sent to COMP holders. Leshner had originally tweeted for the return of funds, offering 10% as a white hat, while ‘doxxing’ those who do not comply. Following community backlash, he apologised for the ‘bone-headed’ tweet. (ref)

Chainlink Partnership with Cardano and JPEG’d Announced

Chainlink partnership with Cardano was announced during the Cardano Summit to build out secure smart contracts for DeFi applications on the Cardano ecosystem. Additionally, another partnership was announced with JPEG’d, a DeFi protocol looking to accept CryptoPunks as collateral. On-chain data shows ‘whale’ accumulation of LINK this week (around 3.4% supply of total LINK supply). (ref, ref, ref)

New Chainalysis Report Showing Central, Northern, and Western Europe have the Biggest Cryptocurrency Economy in the World

According to a Chainanalysis report, Central, Northern, and Western Europe have received over $1T in cryptocurrency, accounting for over 25% of all cryptocurrency activity in the world. Report further shows that over the last 12 months the majority of institutional transfers went into DeFi protocols. (ref)

dYdX Tops Coinbase Trading Volume

Decentralised derivatives trading exchange, dYdX tops Coinbase trading volume for the first time. Analytics show that dYdX 24h volume overtook Coinbase by 15%. This week, dYdX reached an ATH of $27.64. (ref)

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