Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you the most significant developments from the past week.
The past week in DeFi was filled with bullish resurgences for many projects, but it was the Uniswap founder’s $650 billion HayCoin (HAY) burn — 99% of the token supply — that grabbed headlines. In other news, a new report highlighted that 85% of the rug-pulled DeFi projects in Q3 didn’t report an audit, and the largest DeFi protocol on Solana has shut down its United Kingdom operations due to strict regulations imposed by the Financial Conduct Authority (FCA).
Several developments in the DeFi space have garnered attention this week. Uniswap founder Hayden Adams burned 99% of the HayCoin supply, which amounted to $650 billion. Adams made this move to address concerns about price speculation surrounding the token. The burn removed the majority of HayCoin from circulation. This event has sparked discussion and speculation within the DeFi community.
Another significant development was the release of a report by Hacken, a blockchain security auditor. The report revealed that 85% of the rug-pulled DeFi projects in Q3 did not report an audit. This highlights the importance of audits in ensuring the security and reliability of DeFi projects. Investors should be cautious and conduct thorough research before investing in any DeFi project to mitigate the risks associated with rug pulls.
Additionally, the largest DeFi protocol running on the Solana blockchain, Marinade Finance, has decided to block users from the United Kingdom. This decision was made due to the strict regulations imposed by the Financial Conduct Authority (FCA) in the UK. Marinade Finance has a large user base of around 75,000 users and had a significant amount of funds locked on the Solana blockchain. This development underscores the challenges faced by DeFi protocols in navigating regulatory landscapes across different jurisdictions.
In terms of market performance, the top 100 DeFi tokens had a bullish week, with most of the tokens trading in the green and experiencing double-digit weekly gains. The total value locked into DeFi protocols also saw significant growth, jumping nearly $6 billion to $49.16 billion. This indicates the continued growth and adoption of decentralized finance.
To further expand the DeFi ecosystem, Polygon Labs has launched the Ethereum contract for the new Polygon token, POL. This token is intended to replace Polygon’s current token, MATIC, and will power a vast ecosystem of zero knowledge-based Layer 2 chains. While users are not required to exchange their MATIC for POL at the moment, this development sets the stage for the future evolution of the Polygon ecosystem.
In conclusion, the past week in DeFi has seen notable developments that have both captured attention and showcased the growth of the industry. From the significant burn of HayCoin by Uniswap founder Hayden Adams to the report on rug-pulled DeFi projects lacking audits, these events highlight the challenges and opportunities within the DeFi space. The decision of Marinade Finance to block users from the UK due to regulatory concerns and the positive market performance of DeFi tokens further signify the evolving landscape of decentralized finance. As the industry continues to progress, it is crucial for investors to stay informed and navigate the DeFi space with caution.