A Guide to TradFi Blockchain Adoption

The concept of total value locked (TVL) in decentralized finance (DeFi) is expanding to include tokenized real-world assets (RWA), such as mortgages and private equity investments, as blockchain adoption by traditional financial institutions progresses, making it increasingly important for institutions to select the most suitable blockchain platform for tokenized RWAs based on their TVL.

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Relevant topic timeline:

8/23/2023

Crypto capitulation ‘in the air’ as investors sell Bitcoin in panic

Bitcoin and other cryptocurrencies are facing intense pressure as prices drop and short-term holders offload their assets, signaling a possible capitulation phase and suggesting further downside potential. Additionally, major altcoins like Ethereum, Solana, and Cardano have witnessed a decline in their Total Value Locked (TVL) over the past week, indicating a decrease in popularity and utilization in the decentralized finance (DeFi) ecosystem.

8/24/2023

Pendle Finance Users Can Now Profit From Real World Assets

Pendle Finance is introducing a new product that leverages real-world assets (RWA) to provide users with yields from traditional sectors, such as U.S. Treasury Bonds and tokenized assets, aiming to attract institutional investors into the decentralized finance (DeFi) space.

8/28/2023

$170,000,000,000 in Deposits Leaving the Decentralized Finance (DeFi) Ecosystem, Says IntoTheBlock - The Daily Hodl

Decentralized finance (DeFi) has been heavily impacted by the crypto bear market, with the total value locked in DeFi reaching its lowest point since February 2021, as investors withdraw approximately $170 billion in deposits due to decreased yields and increased exploits. However, newer protocols like Unibot are attempting to simplify the DeFi experience and show promising signs for reigniting the DeFi space.

8/31/2023

Why DeFi’s Woes May Be Existential

Hackers have targeted decentralized finance (DeFi) protocols almost 500 times since 2019, stealing a total of $6 billion, highlighting the vulnerabilities of the smart contracts that underpin DeFi platforms. The recent surge in hacks, along with declining market share and increasing interest rates, has led to the closure of several platforms and calls for regulations to prevent money laundering and enhance security measures.

9/7/2023

Global regulators seek to crack down on decentralised finance

Global securities regulators have outlined a blueprint to hold participants in decentralized finance (DeFi) accountable for their actions and protect market stability, as the sector has experienced significant shrinkage and is being used for money laundering; regulators are proposing a framework to ensure investor protection, risk management, and cross-border cooperation.

9/18/2023

Blockchain Risks Remain Despite Decentralization Promise

The concentration of assets in decentralized finance (DeFi) could pose a risk if stablecoins surpass the market capitalization of the native tokens of their underlying blockchains, creating a potential for double-spending and control by token holders, highlighting the need to rethink distributed ledger technology (DLT) architecture and explore alternatives to blockchain such as directed acyclic graphs (DAG).

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Posted 8/30/2023, 3:45:00 PM