Last week in the decentralized finance (DeFi) ecosystem was filled with exciting developments and a few challenges. One of the highlights was Thorchain’s launch of its lending feature, allowing users to lend BTC and ETH to THORChain and borrow a USD-denominated debt with no liquidations, interest, or expiration. This move opens up new opportunities for users in the DeFi space.
Sei also made waves by launching its Pacific-1 mainnet, which enables bridging and staking. A significant aspect of this launch is an upcoming early airdrop for users after an ecosystem warm-up period. Another notable development was the launch of the Immutable zkEVM testnet. This testnet, dedicated to gaming products, aims to provide an EVM-compatible zk-rollup L2 solution.
Nautilus also joined the list of live platforms with the launch of its optimistic EVM rollup L3. This platform combines the speed of Solana with the security of Ethereum to support fast transaction processing. Silo took a unique approach with the launch of its Llama edition on Ethereum, which uses $crvUSD as the universally-accepted collateral across all isolated markets.
Archblock introduced the Short-Term U.S. Treasury Bill Fund on its marketplace for KYC’d, non-US investors, providing them with an investment opportunity. Maker DAO executed several updates in its latest executive vote, including the adjustment to EDSR. As a result, Maker DSR is now reduced from 8% to 5%.
Other notable developments include the launch of Arbitrum Odyssey 2.0, Linea’s ERC20 token bridge going live, and the alpha testnet of DVT liquid staking protocol Diva. Scroll also reached a significant milestone with the launch of its Sepolia testnet, bringing upgrades to zkEVM, bridge, and infrastructure.
CoWSwap now enables TWAP orders via Safe Wallet, allowing users to split their trades over time while benefiting from CoW’s MEV protection and prices. Curve introduced crvUSD leverage of up to 9x, and Threshold launched tBTC on Solana. Aave also activated LUSD as a collateral asset on the Aave V3 ETH pool.
In terms of regulatory news, the Monetary Authority of Singapore (MAS) finalized a stablecoin regulatory framework, laying out requirements for SCS issuers seeking recognition.
Unfortunately, there were also a couple of challenges in the DeFi space. OP-based fixed-rate lending platform Exactly experienced a hack that resulted in the loss of around $7.3 million. The root cause was an insufficient check, allowing the attacker to execute a malicious deposit function. The team has deployed a fix and is currently working on funds recovery.
Another issue occurred with the newly launched Shibarium L2, where transactions were stuck on-chain, leading to $1.8 million being locked on ETH. The team has resolved the problem, and Shibarium is now back online, with plans to open to the public soon.
In addition, Las Vegas-based crypto custodian Prime Trust filed for Chapter 11 bankruptcy protection, impacting its service provision for TUSD and Binance.US.
On a more positive note, bridging protocol Connext announced the launch of its native token NEXT on September 5th, with early users able to claim their airdrop across multiple chains.
Overall, last week in DeFi showcased both the innovation and challenges present in the space. As the ecosystem continues to grow, it’s crucial for users to stay informed and exercise caution while exploring the ever-expanding world of decentralized finance.