🎉DeFi Tokens Enjoy Market Spoils
DeFi benefited greatly from the recent bullish market action, with the combined capitalization of DeFi tokens up 15% this week and the value of assets locked in DeFi protocols at a three-month high.
BitMEX co-founder, Arthur Hayes, believes Bitcoin ETF hype is overblown. Instead, Hayes attributes the recent rally to the threat of unending U.S. expenditure, citing sell-offs in stocks and bonds and an uptick in the price of gold.
Polygon launched its new POL token on Ethereum. The token will power Polygon's upcoming restaking ecosystem, allowing stakers to earn additional yields for validating multiple networks at once.
DYdX open-sourced the code for its forthcoming Cosmos-based appchain. The move follows dYdX Trading Inc converting to a Public Benefit Corporation and pledging not to earn fees from dYdX v4.
India topped the adoption index in Chainalysis's annual Geography of Cryptocurrency report. The milestone comes in spite of a tumultuous recent history for India's web3 sector.
And the popular trading bot, Maestro, was exploited for $500,000 after a fresh smart contract deployment. Maestro patched the bug and resumed opeartions, also pledging to refund affected users.
✍️ In today’s newsletter:
- DeFi assets outperform BTC
- Arthur Hayes attributes rally to US military budget
- Polygon launches new token POL
- DYdX open-sources code for upcoming v4 release
- India tops Chainalysis adoption index
- Maestro traders lose $500,000 to exploit
📈 Markets in last 24 hrs:
|S&P 500||$4,248||↗ 0.73%|
|Arch WEB3||0.86pts||↗ +5.79%|
|↳ FINANCE||0.85pts||↗ 5.29%|
|↳ INFRA||0.93pts||↗ 5.34%|
|↳ CONSUMER||0.91pts||↗ 8.67%|
Learn more about Arch Indices here.
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DeFi Sector Heats Up Amid Broad Market Rally
TLDR The combined capitalization of DeFi assets jumped to a three-month high following the recent crypto rally. The total value locked in DeFi protocols is also above $40B for the first time since August.
SO WHAT While most mainstream pundits have been preoccupied by BTC and BlackRock's ETF bid, many DeFi assets are quietly outperforming Bitcoin. DYDX, AAVE, and THOR are up 25%, 32%, and 41% over the past seven days respectively.
READ MORE: DeFi Sector Heats Up Amid Broad Market Rally
Arthur Hayes Says BTC Is Rallying Over US Military Spending, Not ETF Hype
TLDR Former BitMEX CEO, Arthur Hayes, believes Bitcoin's spot ETF hype is overblown, and that the markets are actually rallying in response to the prospect of unending U.S. military spending.
SO WHAT Hayes said the Biden administration's request for additional funding to support both Ukraine and Israel precipitated a sell-off in bonds and treasuries alongside a boom in gold. The BitMEX co-founder anticipates money will soon flow into Bitcoin, Ether, and finally his "beloved shitcoins."
Polygon Deploys POL Token On Ethereum
TLDR Polygon launched its new POL token on Ethereum, paving the way for a new staking layer as part of its Polygon 2.0 overhaul. Polygon previously said it would launch migrations for its existing MATIC token by 2024.
SO WHAT Polygon plans for POL to power its forthcoming restaking mechanism. Stakers will be able to provide multiple validation services simultaneously for any Polygon chain via POL under the new system.
Read More: Polygon Deploys POL Token On Ethereum
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Maestro Trading Bot Exploited For $500K
TLDR Maestro, a popular crypto trading bot, lost $500,000 worth of users' assets after opportunistic hackers took advantage of bugs in a newly deployed contract. Maestro patched the bug and resumed trading, promising to refund affected users at a later date.
SO WHAT The incident highlights just some of the risks associated with trading bots, many of which require users to share their private keys. The Defiant recommends that web3 users never expose their private keys to any person or protocol.
READ MORE: Maestro Trading Bot Exploited For $500K
dYdX Exchange Open-Sources Code in Anticipation of Transition to Cosmos App Chain
TLDR dYdX open-sourced the code for its upcoming v4 deployment. The open-source codebase includes the orderbook and front-end for dYdX v4.
SO WHAT The move codes as dYdX is looking to step back from managing every aspect of the protocol for its forthcoming Cosmos-based appchain iteration. DYdX Trading Inc. recently transitioned to a Public Benefit Corporation structure, meaning it won't generate fee revenue from dYdX v4.
India Bucks Downtrend By Topping Chainalysis Adoption Index
TLDR India topped the adoption index in Chainalysis's 2023 Geography of Cryptocurrency report. Chainalysis said India's DeFi sector is taking off, with the country ranking second by DEX volume and fourth by smart contract interactions globally.
SO WHAT India's cryptocurrency community is emerging in spite of a tumultuous history since 2018. In recent years, the country has endured a ban on banks servicing crypto businesses, a sky-high domestic premium on digital assets, and, as of early 2023, a 30% tax on cryptocurrency profits.