DeFi Digest: TVL Unchanged as Uniswap Sets Timeline for Protocol Upgrade

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

Key metrics of the DeFi segment

Total value locked (TVL) in DeFi protocols remained roughly flat at $45.13 billion. The leader is Lido with $15.2 billion; AAVE rose to second place with $6.16 billion. MakerDAO slipped to third with $5.62 billion.

By network, Ethereum continues to dominate, accounting for more than 58% of the value of locked assets. continues to dominate the ecosystem in terms of locked value.

Weekly trading volume on decentralized exchanges (DEX) stood at $13 billion. Uniswap accounted for 58% of the total. PancakeSwap and Curve followed with a sizable lead.

Uniswap team outlines timelines for launching the fourth version of the protocol

The launch of v4 of the leading DEX is is expected to take place within four months after the Dencun hard fork on the Ethereum blockchain. The Uniswap Foundation secretary Erin Koehn said this.

The timeline depends on the successful deployment the Cancun upgrade to the execution layer in the Ethereum mainnet and the implementation of EIP-1153 in this process. The Uniswap team expects the upgrade to occur no earlier than September.

On June 13, it published a preliminary code for Uniswap v4.

Developers propose Ethereum standard to combat DeFi hacks

A group of developers from the Ethereum community proposed a new standard ERC-7265: Circuit Breaker to enhance the security of DeFi protocols.

The solution allows inserting into smart contracts an automatic “circuit breaker” that halts token movements when the rate of asset outflow reaches a threshold.

This should help preserve most of the funds in the event of a hack, said Meir Bank, founder of Fluid Protocol. The remaining coins taken by attackers would be easier to recover, he added.

dYdX launches new testnet for transition to “full decentralization”

DEX dYdX launched a public testnet based on Cosmos and the Tendermint consensus protocol.

The developers stated that the public testnet launch would entail increasing validators to 40 and more.

In Europe, warnings against excluding DeFi from MiCA

The Association for Financial Markets in Europe urged regulators not to exclude DeFi from the MiCA regulatory framework.

«We believe that decentralized finance and related activities should be placed within the regulatory perimeter properly to manage risks to market integrity, financial stability and end users, while promoting financial and technological innovation», — said the organization.

IDEX to create its own L2 network on Polygon

One of the oldest Ethereum exchanges — IDEX — is working on a layer-2 solution Xchain. At its core lies Polygon’s zkEVM technology.

The testnet is already live on the Supernets infrastructure, which also enables creating customizable blockchains — app-chains.

«Xchain represents the final piece needed to compete with centralized exchanges», — emphasized IDEX co-founder Alex Vern.

Also on ForkLog:

• PeckShield analysts reported a hack of the DeFi project Arcadia Finance, resulting in the hacker stealing digital assets worth about $455,000.
• The attacker withdrew 810.1 ETH (~$1.5 million at the time of writing) from the Rodeo Finance protocol in the Arbitrum network through manipulating the oracle.