Balancer: Mitigation Procedures Have Been Developed for the Vulnerability but the Affected Fund Pools Cannot Be Suspended, and the Exact Number of Losses Cannot Yet Be Disclosed
On August 31st, Balancer, a DeFi liquidity protocol, announced an update regarding the vulnerability risk. They have implemented mitigation measures to reduce the risk, but the affected liquidity pools cannot be paused. Users are urged to immediately use the user interface (UI) to exit the affected LP. Due to the vigilance and quick action of Balancer LP, most of the liquidity initially considered vulnerable has been withdrawn. However, on August 27th, 5 days after the vulnerability disclosure, malicious actors successfully exploited the remaining funds vulnerability in the affected pools of Balancer and Beethoven X protocols.
$170 Billion in Deposits Leaving the DeFi Ecosystem
According to a report by blockchain analytics firm IntoTheBlock, the TVL in DeFi has dropped to its lowest level since February 2021, with around $170 billion in deposits leaving the sector. <br>
The value locked in the cross-chain DeFi agreement is less than 38 billion US dollars, which is lower than the 178 billion US dollars at the peak of the industry in November 2021
Data shows that a series of failures of centralized cryptocurrency exchanges and services over the past year have not stopped the continued outflow of funds from DeFi. According to DefiLlama, the total value locked in cross-chain DeFi protocols is less than $38 billion, lower than the industry peak of $178 billion in November 2021. Of this, nearly $21.8 billion is currently stored in the Ethereum protocol. The overall figure is even lower than the total value locked (TVL) in DeFi shortly after the collapse of the centralized exchange FTX in November 2022, which was about $40 billion, causing the number of assets locked in such protocols to fall to the lowest point in two years. Centralized cryptocurrency lending institutions such as BlockFi, Genesis, and Gemini Earn have also collapsed in the spread.
Delphi Labs Researcher: Proposed Regulations for Crypto Asset Brokers Clearly Characterize Various People Involved in DeFi As Brokers
Delphi Labs researcher lex_node stated on social media X (formerly Twitter) that the proposed financial regulations for cryptocurrency brokers have just been released, which explicitly categorizes various personnel involved in DeFi (including website operators communicating with wallets) as brokers. Many DeFi network applications that have US users will need to track users' profits and losses and issue tax reports to them every year.
Hashdex Applies to Hold Spot Bitcoin in Its Bitcoin Futures ETF
Bloomberg ETF analyst James Seyffart tweeted that cryptocurrency management company Hashdex has applied to hold spot Bitcoin in its Bitcoin Futures ETF DEFI. It is worth noting that this application does not rely on Coinbase's Supervisory Sharing Agreement (SSA), but hopes to obtain spot BTC through CME Market's Exchange for Physical.
DeFi yield protocol Pendle to use sDAI and fUSDC in its first RWA product
Odaily Planet Daily News reported that Pendle Finance, a DeFi yield protocol, will use MakerDAO's Boosted Dai Savings (sDAI) and Flux Finance's fUSDC in its first RWA-based product. Pendle co-founder and CEO TN Lee said, "Fixed income and RWA have some untapped large-scale markets in DeFi. I firmly believe that these will play a key role in attracting large off-chain institutional investors." He added, "RWA already exists in DeFi, and now Pendle can provide a set of tools for users to hedge or manage these yields correctly. Interest rate derivatives, swaps, fixed income... all of these products favored by TradFi institutions already exist."
Total Value Locked in DeFi Protocols Has Dropped to Lowest Level Since February 2021
According to data compiled by DefiLlama, the funds stored in decentralized finance (DeFi) protocols have decreased to the lowest level since February 2021. Specifically, the total locked value (TVL) has fallen to $37.5 billion, below the post-bull market low of $38 billion set in December. In just the past month, some protocols have lost more than half of their locked value. The TVL of Velodrome, a decentralized exchange (DEX) based on Optimism, has dropped by 58%. Balancer, one of the largest liquidity protocols, has seen its TVL drop by 35% to $641 million.
Hope.money Released a New Roadmap To Build Next Gen Money in Three Phases
The distributed stablecoin project Hope.money has announced its new project roadmap to the community today:
Pendle: 3 Pendle Pools Are Affected by Balancer’s Emergency Measures，The Funds in the Affected Pools Are Safe but Will No Longer Be Profitable
The DeFi yield protocol Pendle Finance announced that three Pendle pools, namely: 1. ETHx-bbaWETH 2. swETH-bbaWETH 3. swETH-bbaWETH [old version], were affected by Balancer's emergency measures. Other pools were not affected.The funds in the affected pools are safe, but the basic Balancer pool has suspended trading, which means that no more profits will be generated. Holders are advised to withdraw their basic LP assets.
The DeFi TVL of the Entire Network Fell to a New Low Since January 6
On August 19th, according to DefiLlama data, the total value locked (TVL) in DeFi is approximately 38.207 billion US dollars, reaching a new low since January 6th this year, a decrease of about 27.4% from the yearly high.
