DeFi Shrinks to Multiyear Low as the Crypto-Fueled Future of Finance Falters

The total value locked (TVL) in decentralized finance (DeFi) protocols has dropped to its lowest level since February 2021, reaching $37.5 billion, due to factors including the recent decline in Bitcoin and Ethereum prices, the U.S. government's regulatory crackdown on crypto, and lower yields on DeFi assets compared to U.S. Treasuries.

coindesk.com

Relevant topic timeline:

8/1/2023

Curve Finance’s $62M exploit exposes larger issues for DeFi ecosystem

Main topic: Hackers stole $62 million from Curve Finance, raising concerns about the strength of the decentralized finance ecosystem. Key points: 1. Curve Finance is one of the largest decentralized exchanges (DEX) with $1.67 billion in total value locked (TVL). 2. Several DeFi projects' pools were also hacked, resulting in significant losses. 3. The hack was caused by a bug in older versions of the Vyper compiler contract programming language. 4. The hack represents about 4% of Curve's TVL, but a white hat hacker returned $5.4 million to Curve. 5. The hack highlights ongoing challenges and vulnerabilities in the crypto space.

8/23/2023

Ether Staking Demand Remains Unfazed as EigenLayer 100K ETH Cap Limit Filled Within Hours

EigenLayer, a DeFi platform, experienced a significant increase in total value locked (TVL) of 207% after raising its liquid restaking cap to 100,000 ETH, resulting in a rise from $78 million to $238 million in TVL.

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.

8/30/2023

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.

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.

8/31/2023

DeFi Deposits on Base Soar as Yield Farmers Plant Aerodrome Harvest - Decrypt

The total value deposited into DeFi contracts on the Base network reaches an all-time high of $301.2 million due to liquidity mining incentives on the Aerodrome decentralized exchange, while lending protocols like Aave on the Ethereum layer-2 see scarce liquidity.

9/16/2023

DeFi Activity Slows in August with Declines in Volume, TVL and Tokens

The decentralized finance (DeFi) ecosystem experienced a decline in on-chain economic activity in August, with exchange volume decreasing by 15.5%, the DeFi Index falling 21%, and the total value locked decreasing by 8%; however, positive developments such as stablecoin growth were observed.

Topics

Posted 8/23/2023, 3:11:00 PM

DeFi Shrinks to Multiyear Low as the Crypto-Fueled Future of Finance Falters

coindesk.com

Relevant topic timeline:

8/1/2023

Curve Finance’s $62M exploit exposes larger issues for DeFi ecosystem

8/23/2023

Ether Staking Demand Remains Unfazed as EigenLayer 100K ETH Cap Limit Filled Within Hours

8/28/2023

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

8/30/2023

A Guide to TradFi Blockchain Adoption

8/31/2023

Why DeFi’s Woes May Be Existential

8/31/2023

DeFi Deposits on Base Soar as Yield Farmers Plant Aerodrome Harvest - Decrypt

9/16/2023

DeFi Activity Slows in August with Declines in Volume, TVL and Tokens