🎉DeFi Tokens Enjoy Market Spoils

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

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."

Read More: Arthur Hayes Says BTC Is Rallying Over US Military Spending, Not ETF Hype

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

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

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.

Read More: dYdX Exchange Open-Sources Code in Anticipation of Transition to Cosmos App Chain

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.

Read More: India Bucks Downtrend By Topping Chainalysis Adoption Index

• Base launches grants program for builders
• SEC website acknowledges Grayscale ETF application
• Ethereum researchers launch new devnet for Dencun upgrade

• Vitalik Buterin invests in Nocturne Labs, which aims to bring private accounts to Ethereum (The Block)
• Ledger launches controversial Recover service (CryptoSlate)
• Vodafone, Chainlink Show Blockchain Can Support Global Trade Processes (CoinDesk)