Weekly DeFi Index

This week's market cap and volatility indices were positive at +2.84% and +14.28%, respectively, while the volume index was negative at -15.48%.

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DeFi Index Tokens

*DeFI index tokens: AAVE, BAL, CAKE, COMP, CRV, CVX, FXS, JOE, LDO, LINK, MKR, OSMO, REN, SNX, SPELL, SUSHI, UNI, VVS, YFI.

News Highlight 

• Bitcoin Lightning Network infrastructure firm Lightning Labs released a test version of a software called Taro, which allows developers to create, send, and receive assets on the Bitcoin blockchain. According to Lightning Labs, Taro will make it possible to create Bitcoin and Lightning-native stablecoins that allow for “[instant settlements], low-fee, [and] peer-to-peer transactions without financial intermediaries”.

• Transit Swap, a multichain decentralised exchange aggregator, was exploited and lost roughly US$23 million on 1 October because of an internal bug on its swap contract. The hacker’s IP, email address, and associated on-chain addresses were quickly identified with the help of several blockchain security companies. After their efforts, the hacker returned 70% of the stolen assets, equating to roughly $16.2 million, within 24 hours.

• Layer-2 solution zkSync announced that its 2.0 mainnet is expected to be deployed around 28 October. According to Matter Labs, the developer behind zkSync, zkSync 2.0 will be the first EVM-compatible ZK rollup (zkEVM) solution to tackle Ethereum’s scalability problems.

DEX Protocols Metrics

Sources: CoinGecko, DeFi Llama, Nomics, Crypto.com Research

Lending Protocols Metrics

*LDR (Loan to Deposit Ratio) = Total Borrowed / TVL

Sources:CoinGecko,DeFi Llama,Crypto.com Research

Charts on Layer-2 Projects

• The overall L2 market was relatively stable last week, as its TVL dropped slightly by -0.63%. Optimistic rollup projects fell by -0.47% and zero-knowledge rollups decreased by -4.77%. Ethereum’s TVL change was negative at -0.02%.

• The TVL changes for all optimistic rollup projects were negative except Optimism (+2.53%). Arbitrum fell the most by -2.20%.

• ZK rollup projects’ TVL movement was mixed. StarkNet’s TVL kept the momentum and surged the most at +5.60%, while Aztec plummeted the most at -12.72%.

Further Reading 

• SWIFT partners with crypto data provider Chainlink on cross-chain protocol in TradFi play

• T-Mobile parent Deutsche Telekom launches Ethereum validator, staking support

• Gnosis Safe launches SafeDAO, Safe Token

• IOTA launches Shimmer Network for zero fee asset tokenization

• Circle expands USDC stablecoin to five new chains, unveils cross-chain transfer protocol

• Jack Dorsey’s TBD teams up with Circle to take US dollar stablecoin savings and remittances global

• Ooki DAO moves to raise funds to defend against CFTC lawsuit

• Uniswap Labs to raise venture capital at $1B valuation

• Sushi community votes in 'Head Chef' to oversee decentralised crypto exchange

• Bitcoin miner Rhodium going public through reverse merger with SilverSun Technologies

• MEV bot earns $1M but loses everything to a hacker an hour later

Disclaimer

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