banner

Advertisement

😬 Unsecured DeFi Lenders Look Shaky in Face of FTX Contagion

Hello Defiers! Here’s what we’re covering today:

😬 Unsecured DeFi Lenders Look Shaky in Face of FTX Contagion

Hello Defiers! Here’s what we’re covering today:

News
FTX Crisis: Solana
Markets
Opinion
Podcast
437febd1 192b 43de a482 90caff486bd6 811x159 4
Defiant Video
Trending in The Defiant
Elsewhere

A word from our wonderful sponsors, who make this newsletter possible: 

8a17ae2f b1e6 4c1a a083 a3265166fa15 726x258 4

Aave is the leading decentralized liquidity protocol. Aave governance has greenlighted the development of GHO – a decentralized, collateral-backed stablecoin that will be native to the Aave protocol. Launching on testnets soon! 

fbc17355 fa1e 4bca a7bd b448d26b4ccd 600x179 4

Lumerin is revolutionizing Bitcoin mining with a decentralized marketplace for buying and selling hashpower. Help us test the network in beta and earn real BTC hashpower to sell, trade, or mine. Find out more!

cc1436a7 728a 415a a2e9 e0ccfaa7733f 700x200 4

DeFi should be better – and it’s about to get radically better with Radix. Get your free ticket to join RadFi2022 on December 8 and learn what the future holds for decentralized finance. Find out how!

84dc440e c3eb 4c6d b8b1 06c280e0fb41 360x77

Metis Andromeda is a permissionless & secure Ethereum Smart Layer 2 creating the decentralized finance foundations for the web3 economy. Bridge Free & explore our ecosystem during our first anniversary!


DeFi Lending

😬 Unsecured DeFi Lenders Look Shaky in Face of FTX Contagion

Alameda Owes DeFi Lenders $13M as TVL Drops for Major Players

By Owen Fernau

d6bef461 62b3 46ce 8615 dd66c13aeee8 600x337

EXPOSED The fallout from FTX’s collapse is just starting and within decentralized finance, platforms enabling unsecured loans are the most exposed relative to collateralized counterparts with millions in loans on the line, while total value locked slides.

👉READ THE FULL STORY IN THE DEFIANT.IO👈


Market Action

📈 Markets Rally After Binance Proposes ‘Industry Recovery Fund’

DeFi Derivatives Surge as Traders Flee Exchanges

By Aleksandar Gilbert

81032835 12ec 491d 8cc5 aa1b6966e49a 880x495

RALLY Crypto markets rallied early Monday after Binance CEO Changpeng Zhao (CZ) proposed to create an “industry recovery fund” that would invest in companies struggling to stay afloat in the wake of FTX’s collapse. Major cryptocurrencies spiked after Zhao’s announcement just after 1:30 a.m. New York time, despite few details about the proposed fund.

👉READ THE FULL STORY IN THE DEFIANT.IO👈



Sponsored Post
7f5d4dc7 87b6 44aa 9e57 1512e083bc47 1600x534

Liquity’s Chicken Bonds enhanced yield with DeFi Saver

DeFi Saver is an all-in-one dashboard for creating, managing and tracking positions with automatic liquidation protection and leverage management options for only the most trusted DeFi protocols, Liquity among them.

Liquity, interest-free borrowing protocol built on Ethereum, recently introduced a novel product offering The Defiant wrote aboutChicken Bonds. Chicken Bonds are a new, innovative form of bonding mechanism in DeFi.

Chicken Bonds are an innovative bonding mechanism offering several key benefits to those willing to bond their Liquity native stablecoin LUSD. In exchange for depositing and bonding LUSD, users accrue boosted LUSD (bLUSD), derivative token.

Primary benefit for bonding LUSD instead of supplying to Liquity’s Stability Pool is the amplified yield users get from Liquity’s internal liquidation mechanism as well as from other liquidity sources like the pools in Curve. Alongside improved liquidity for the LUSD stablecoin, the most important benefit to users is bonding with no time commitment or maturity. Users can withdraw principal LUSD fully and chicken out at any time, renouncing the accrued interest. The other option being to chicken in and claim accrued bLUSD, forgoing the initial LUSD deposit.

As the most comprehensive decentralized frontend for Liquity, DeFi Saver continues its devoted support with dedicated Chicken Bonds dashboard and advanced protocol actions and strategies. Alongside basic actions, DeFi Saver offers users options to Claim and Sell bLUSD or Rebond (Claim, Sell and create new bond). DeFi Saver team is even preparing automation options for the new Liquity innovation.

Get the most out of your Liquity experience with DeFi Saver.


FTX Crisis: Solana

📉 Solana Discloses Losses From FTX Collapse

Serum DEX Heavily Impacted

By Tarang Khaitan

a3c0972a 964e 412d b834 d0e5227aa296 880x495

BANKRUPT The Solana Foundation and Solana Labs have disclosed their asset exposure and transaction histories linked to bankrupt crypto exchange FTX and its sister trading firm Alameda Research.

👉READ THE FULL STORY IN THE DEFIANT.IO👈


Crypto Exchanges

😳 Disclosing Reserves May Backfire for Centralized Exchanges

Crypto.com’s Vow to Audit Reserves Spurs Scrutiny From Blockchain Sleuths

By Samuel Haig

28dfec70 871f 493b 8d07 b2e09043eacd 880x495

SHIFT In response to FTX’s bankruptcy, a number of centralized crypto exchanges, including Binance, are racing to publish data on their reserves and ease the worries of investors. Yet the shift has already produced a cautionary tale that shows publishing reserve data may reveal problematic practices.

👉READ THE FULL STORY IN THE DEFIANT.IO👈


FTX: Investigations

🏛 FTX Confirms Justice, SEC Probes in Bankruptcy Filing

FTX Appoints Independent Directors to Ensure ‘Proper Governance’

By Edward Robinson  

55cc78fc fb22 446a 9386 59cf7dbc889f 880x496

PROBES In the first significant filing of its bankruptcy, FTX confirmed that the U.S. Department of Justice and other federal and state agencies are probing the exchange in connection with its failure last week. 

👉READ THE FULL STORY IN THE DEFIANT.IO👈



FTX Crisis: FTT Tokens

👀 FTX Deployer Transfers $400M of FTT Tokens

Regulator Denies Instructing Exchange to Process Bahamian Withdrawals

By Aleksandar Gilbert

4d6e8733 2797 415a 80a7 5cbd4ecabf51 880x495

TRANSFER Bankrupt crypto exchange FTX transferred nearly $400M worth of newly created FTT tokens to a yet-to-be-identified wallet Saturday night, sending the price of the token crashing to new lows.

👉READ THE FULL STORY IN THE DEFIANT.IO👈


FTX Crisis: Solana

💥 FTX-Backed Bitcoin and Ether Tokens Depeg On Solana

soBTC Is Trading at a 50% Discount

By Aleksandar Gilbert

ee681c49 fb74 4310 aafe 4d51e1a7ef79 880x495

PEG Wrapped versions of Bitcoin and Ether on the Solana blockchain have lost their peg to the underlying assets in the wake of FTX’s bankruptcy filing. Bitcoin on Solana, or soBTC, was trading at $8,000, less than half the price of native Bitcoin. At one point, it fell as low as $4,000 per token.

👉READ THE FULL STORY IN THE DEFIANT.IO👈g


Exploits

🦹🏻‍♂️ FTX Hacked for at Least $650M in Mega-Heist Friday Night

Hackers drained hundreds of millions of dollars from insolvent crypto exchange FTX Friday night

By Aleksandar Gilbert

FTX Hacked for at Least $650M in Mega-Heist Friday Night

HEISTS Hackers drained hundreds of millions of dollars from insolvent crypto exchange FTX Friday night, just hours after it declared bankruptcy, in one of the largest heists in crypto history. 

WALLETS There are five known wallet addresses involved in the exploit. One hacker made off with about $450M in cryptocurrencies, according to crypto sleuth ZachXBT, while about $200M went to another pair of wallets. The total amount drained from the failed exchange is at least $650M, according to estimates from ZachXBT.

👉READ THE FULL STORY IN THE DEFIANT.IO👈


Opinion

👨🏻‍🍳 A Recipe for Making DeFi Lending Sustainable and Stable

Market Manipulators Must be Stopped — Here’s How

By Amit Chaudhary  

A Recipe for Making DeFi Lending Sustainable and Stable

STABILITY The world of decentralized lending has been rightly referred to as the “Wild West” more than once. By removing human oversight, new protocols have been able to offer impressive yields on many of their services, but at the huge cost of lowered stability. 

MANIPULATORS Many are waking up to the fact that this is unsustainable and unnecessary, as market manipulators are crushing retail investors on a regular basis. New mechanisms for tapping into legacy credit may restore balance while decentralized and cryptographic proofs can ensure that honest actors run the show.

👉READ THE FULL STORY IN THE DEFIANT.IO👈


Shoutout

MIDAS is an internal token of Midas.Investments — a custodial staking platform that offers market-leading yields on an array of cryptocurrencies, including BTC, ETH, and USDC. Unlike other industry players, Midas has been exceptionally successful in weathering the crypto winter, avoiding liquidity issues while its native token reaches new ATH

After the announcement of the upcoming swap to Ethereum last week, the MIDAS token has hit a new ATH of $43.65. Currently, there are more than $70 million staked in MIDAS tokens on the platform by more than 6,000 users. Stake MIDAS with 22.2% APY.


Defiant Video

📺 FTX Saga Update: Binance Recovery Fund, Crypto.com Reserves, FTX Hack

📺 Weekly Recap: The Fall of FTX – everything we know so far


Podcast Video

📺🎙 Podcast: Robinhood is coming after MetaMask with Polygon Web3 Wallets


Trending in The Defiant

Elsewhere

🔗 Solana Ecosystem Facts Related To FTX Bankruptcy: Solana

During the events of the past week, the Solana network has not experienced any notable performance or uptime issues.

🔗 Let’s Actually Commit to Proofs of Reserve This Time, Okay?: CoinDesk

I’m not going to mince words. The fraud-driven collapse of FTX and Alameda Research is, in my estimation, the worst single event in the crypto industry since its inception.


🧑‍💻 ✍️ Stories in The Defiant are written by Owen Fernau, Aleksandar Gilbert, Samuel Haig, and yyctrader, and edited by Edward Robinson, yyctrader and Camila Russo. Videos were produced by Alp Gasimov. Podcast was led by Camila, edited by Alp.


Free subscribers to the newsletter get:

  • Daily news briefings
  • Sunday Weekly recap
  • General chat on The Defiant’s Discord server

👑 Prime defiers get:

  • Full transcript of exclusive podcast interviews
  • DeFi Alpha weekly newsletter on how to put your money to work in DeFi by yyctrader and DeFi Dad
  • Weekly live DeFi Alpha call with yyctrader
  • Inbox Dump edition of The Defiant newsletter every Saturday with all the PR that didn’t make it to our content channels
  • Exclusive community calls with the team
  • Subscriber-only chats on The Defiant Discord server
  • Full access to The Defiant’s content archive

Click here to pay with DAI (for $100/yr) or sub with fiat by clicking on the button below ($15/mo, $150/yr).

You can start a prime membership for free right now with this link. You’ll get full access for 7 days. It’s 100% risk-free.

Get Smarter on DeFi and Web3

Get the 5-minute newsletter keeping 80K+ crypto innovators in the loop.