DeFi Bulletin: TVL Rises as Synthetix Deploys Third Version of Protocol

The decentralized finance (DeFi) sector continues to attract heightened attention from cryptocurrency investors. ForkLog has compiled the most notable events and news from the past few weeks in this digest.

Key metrics of the DeFi segment

TVL in DeFi protocols rose to $48.68 billion. Lido led with $8.77 billion, while MakerDAO ($7.1 billion) and Curve ($4.89 billion) held the second and third spots.

TVL in Ethereum applications rose to $28.42 billion. Over the last 30 days, the metric rose by 2% (as of 25 January it stood at $27.77 billion).

Trading volume on decentralized exchanges (DEX) over the last 30 days amounted to $54.7 billion.

Uniswap continues to dominate the non-custodial exchange market — accounting for 74.9% of total turnover. The second DEX by trading volume is DODO (6.4%), the third Curve (6.2%).

DeFi project Synthetix deploys the third version of the protocol

The Synthetix launched the third version of the protocol on the Ethereum mainnet and the Layer-2 network Optimism.

Audit of v3 protocol conducted by Open Zeppelin, Iosiro and Macro.

Synthetix — a DeFi platform that enables attracting liquidity and creating derivatives markets based on ERC-20 tokens.

The third iteration of the protocol has a more efficient architecture that expands the capabilities of developers of decentralised applications. It is expected that Synthetix v3 will become the foundation for further expansion of the platform’s functionality.

Developers have already prepared integration with cross-chain solution from Chainlink for cross-network transactions with stablecoins and have successfully completed several transfers through testnets. In the future this will enable a liquidity layer covering an arbitrary number of networks.

DeFi protocol Platypus on Avalanche lost $8.5 million in a hack

The stablecoin of the DeFi project Platypus Finance (USP) lost its peg to the dollar after an attack, in which an unknown actor withdrew assets worth $8.5 million from the Avalanche-based protocol.

The team said the hacker used «flash loan» and a logical error in the solvency-check mechanism in the collateral contract.

After the $8.5 million loss, funds in the main pool cover roughly 35% of user deposits.

The protocol developers contacted several firms, including Binance, Tether and Circle, to freeze the stolen assets. They offered the hacker to discuss the return of the funds for a bounty.

Lido token up 16% after vote on 22 million LDO grants

The DeFi project Lido Finance supported a new system for distributing ecosystem grants. The Lido DAO (LDO) token rose 16% in 24 hours after this.

According to a nearly unanimous vote, over four years 22 million LDO will be distributed. Payouts will be made through multisig wallets.

Among the improvements approved:

• creation of a universal framework for grant accounting;
• increase in the number of independent participants in decision-making;
• exemption from liability for former initiative participants who failed to fulfil obligations.

The aims of the governance proposal were stated as:

• harmonisation and simplification of agreements;
• strengthening of decentralisation;
• grant independence from the time, resources or effectiveness of projects;
• the principle of donor voluntary participation in the program.

Developers noted that during the discussion most participants confirmed their willingness to continue implementing it and to allocate resources.

Also on ForkLog:

• CTO of Composable Finance left the DeFi project due to suspicious activity.