Tornado Cash saga left a void, says Chainalysis chief scientist: Finance Redefined

Wel­come to Finance Rede­fined, your week­ly dose of essen­tial decen­tral­ized finance (DeFi) insights — a newslet­ter craft­ed to bring you sig­nif­i­cant devel­op­ments over the last week.

Chainal­y­sis chief sci­en­tist shared his views on the Tor­na­do Cash saga and said that the inci­dent has left a void for illic­it fund mix­ing ser­vices, but the real impact of the sanc­tions could be deter­mined in the long run.

The stak­ing ecosys­tem of Ethereum post Merge could have a sig­nif­i­cant impact on the cryp­to econ­o­my, accord­ing to a new report. Insti­tu­tion­al lend­ing plat­form Map­ple Finance launched a $300 mil­lion lend­ing pool for Bit­coin min­ing farms.

The Tribe DAO, a decen­tral­ized autonomous orga­ni­za­tion, vot­ed in favor of repay­ing affect­ed users of the $80 mil­lion exploit on DeFi plat­form Rari Capital’s liq­uid­i­ty pools. BNB Chain launched a new com­mu­ni­ty-led secu­ri­ty ini­tia­tive called Avenger DAO.

Top-100 DeFi tokens by mar­ket cap have a mixed week in terms of price action, where many tokens trad­ed in red while a few oth­ers showed week­ly gains.

Tornado Cash left a void, time will tell what fills it — Chainalysis chief scientist

The sanc­tions on cryp­tocur­ren­cy mix­er Tor­na­do Cash have left a vac­u­um for illic­it fund mix­ing ser­vices, but more time is need­ed before we’ll know the full impact, accord­ing to Chainal­y­sis’ chief scientist.

Dur­ing a demo of Chainal­y­sis’ recent­ly launched blockchain analy­sis plat­form Sto­ry­line, Coin­tele­graph asked Chainal­y­sis chief sci­en­tist Jacob Illum and coun­try man­ag­er for Aus­tralia and New Zealand Todd Lenfield about the impact of the Tor­na­do Cash ban.

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Tribe DAO votes in favor of repaying victims of $80M Rari hack

After months of uncer­tain­ty, the Tribe DAO has passed a vote to repay affect­ed users of the $80 mil­lion exploit on DeFi plat­form Rari Capital’s liq­uid­i­ty pools.

Fol­low­ing sev­er­al rounds of vot­ing and gov­er­nance pro­pos­als, Tribe DAO, which con­sists of Midas Cap­i­tal, Rari Cap­i­tal, Fei Pro­to­col and Volt Pro­to­col, took the deci­sion to vote on Sun­day with the intent to ful­ly reim­burse hack victims.

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Staking providers could expand institutional presence in the crypto space: Report

The Ethereum blockchain’s car­bon foot­print is expect­ed to reduce by 99% fol­low­ing last week’s Merge event. By posi­tion­ing stak­ing as a ser­vice for retail and insti­tu­tion­al investors, the upgrade could also have a sig­nif­i­cant impact on the cryp­to econ­o­my, accord­ing to a report from Bit­wise on Tuesday.

The com­pa­ny said it projects poten­tial gains of 4%–8% for long-term investors through Ether (ETH) stak­ing, while J.P. Mor­gan ana­lysts fore­cast that stak­ing yields across PoS blockchains could dou­ble to $40 bil­lion by 2025.

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Maple Finance launches $300M lending pool for Bitcoin mining firms

On Sept. 20, insti­tu­tion­al cryp­to lend­ing pro­to­col Maple Finance and its del­e­gate Ice­break­er Finance announced that they would pro­vide up to $300 mil­lion worth of secured debt financ­ing to pub­lic and pri­vate Bit­coin min­ing firms. Qual­i­fied enti­ties meet­ing trea­sury man­age­ment and pow­er strate­gies stan­dards locat­ed through­out North Amer­i­ca, as well as those in Aus­tralia, can apply for funding.

On the oth­er hand, the ven­ture seeks to deliv­er risk-adjust­ed returns in the low teen per­cent­ages (up to 13% per annum) to investors and cap­i­tal allo­ca­tors. The pool is only open to accred­it­ed investors who meet sub­stan­tial income and/or net worth qual­i­fi­ca­tions with­in a jurisdiction.

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BNB Chain launches a new community-run security mechanism to protect users

BNB Chain, the native blockchain of Binance, has launched Avenger­DAO, a new com­mu­ni­ty-dri­ven secu­ri­ty ini­tia­tive to help pro­tect users against scams, mali­cious actors and pos­si­ble exploits.

The secu­ri­ty-cen­tric DAO has been devel­oped in asso­ci­a­tion with lead­ing secu­ri­ty firms and pop­u­lar cryp­to projects such as Cer­tik, Trust­Wal­let, Pan­cakeSwap and Opera, to name a few.

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DeFi market overview

Ana­lyt­i­cal data reveals that DeFi’s total val­ue locked reg­is­tered a minor dip from the past week. The TVL val­ue was about $50.64 bil­lion at the time of writ­ing. Data from Coin­tele­graph Mar­kets Pro and Trad­ingView show that DeFi’s top 100 tokens by mar­ket cap­i­tal­iza­tion had a mixed week, with many tokens mak­ing a recov­ery toward the end of the week while a few oth­ers trad­ed in red on the week­ly charts.

Com­pound (COMP) was the biggest gain­er, reg­is­ter­ing a 15% gain over the past sev­en days, fol­lowed by Pan­cakeSwap (CAKE) with an 8.8% gain. Theta Net­work (THETA) was anoth­er token in the top 100 to post a 5% week­ly gain.

Thanks for read­ing our sum­ma­ry of this week’s most impact­ful DeFi devel­op­ments. Join us next Fri­day for more sto­ries, insights and edu­ca­tion in this dynam­i­cal­ly advanc­ing space.