Weekly DeFi Index

This week's market cap, volume, and volatility indices were negative at -1.96%, -22.18%, and -6.94%,respectively.

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• Yearn Finance (YFI) developers announced that they will soon launch a liquid staking product called yETH, enabling users to gain exposure to a basket of liquid staking derivatives via a single token. 

New Project Spotlight

• Decentralised perpetual exchange Fulcrom Finance is live. Built on the Cronos blockchain, it enables users to trade with up to 25x leverage while enjoying low fees and negligible price impact. Visit the Fulcrom website to learn more.

News Highlights

• Ethereum developers have successfully activated the Shanghai-Capella upgrade on the Sepolia testnet. The upgrade will be released to the Goerli testnet as a final run-through before the full launch on the mainnet next month. 

• After more than 150,000 ETH were staked with Lido Finance in a single day, a safety precaution known as ’staking rate limit’ for the liquid staking protocol was activated. 

• Tech giant Microsoft is partnering with decentralised blockchain infrastructure firm Ankr to provide an innovative node hosting service that will become available on the Microsoft Azure Marketplace. The partnership will see an integration of both companies’ technologies, pairing Ankr’s innovation in blockchain infrastructure with Microsoft’s cloud solutions. 

• Web3 infrastructure firm Jump Crypto and DeFi platform Oasis.app carried out a "counter exploit" on the Wormhole protocol hacker after receiving an order from the High Court of England and Wales. They recovered US$225 million in digital assets, which were moved to a secure wallet. 

• A number of the Polygon blockchain's nodes went out of sync on Wednesday, leading to a chain reaction of issues that affected performance and caused the widely used blockchain explorer PolygonScan to go offline. 

• The Solana blockchain suffered a 20-hour outage over the weekend, forcing its validators to restart the network twice after on-chain activity froze. According to its developers, the reason for the network-wide outage is still unknown and inquiries are underway.

• The algorithmic backing for the DeFi protocol Frax Finance was removed after a community vote to fully collateralise the protocol's native stablecoin Frax (FRAX) was passed.

• MyAlgo, a native wallet for the Algorand blockchain network, advised its users to withdraw their funds. This was in response to a $9.6 million exploit that it encountered last week, which affected 25 wallets.

Recent Research Reports

• Research Roundup Newsletter [January 2023]: In our latest issue, we feature market insights and our research on artificial intelligence trends, the rise of AI-generated content, and their applications in blockchain and Web3.

• Alpha Navigator: Quest for Alpha [January 2023]: Crypto outperforms other asset classes in January by a large margin. BTC options put-call ratio are at a yearly low, implying a positive sentiment shift.

• AI-Generated Content and Applications in Web3: Artificial Intelligence-Generated Content (AIGC) has taken the world by storm recently, with popular applications like ChatGPT and DALL-E. We analyse its potential applications in Web3.

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