The decentralised finance (DeFi) sector continues to attract heightened attention from cryptocurrency investors. ForkLog has gathered the most important events and news from recent weeks in this digest.
Key metrics of the DeFi segment
The total value locked (TVL) in DeFi protocols fell to $37.2 billion. The leader was Lido with $14.3 billion, while the second and third places are held by Maker ($7.62 billion) and JustLend ($4.82 billion), respectively.
TVL in Ethereum applications fell to $20 billion. Trading volume on decentralized exchanges (DEX) over the last 30 days stood at $54.7 billion.
Uniswap continues to dominate the non-custodial exchange market — accounting for 58.9% of total volume. The second DEX by trading volume is PancakeSwap (13.2%), the third is Curve (6.6%).
Community criticises Uniswap’s KYC function
In the Uniswap v4 repository, discovered a function that allows configuring the Know Your Customer (KYC) verification procedure. The community saw risks in this.
“Uniswap is a fake DeFi. […] It all starts with the KYC function for liquidity pools. Then it becomes a regulator-approved whitelist database, hosted off-chain,” wrote one user.
The so-called “hooks” are tools that allow developers to tailor the code without changing the main structure of the application. In Uniswap, the KYC hook is integrated into DeFi protocols to authenticate customer identities and assess related risks using non-fungible tokens (NFTs).
A member of the community going by TheBattlestation noted that the new feature is specific to liquidity providers and may be useful for projects that must comply with regulatory requirements in certain jurisdictions.
The whitelist feature also drew criticism, but opinions in the community were divided. Some argue that without KYC in 2024 the DeFi sector will struggle to survive.
Platypus Finance hacked for $2 million. Hacker returned 90% of assets
The DeFi project Platypus Finance on the Avalanche network was the victim of an attack, losing about $2 million in digital assets. After the breach was reported, the project temporarily halted all liquidity pools “due to suspicious activity”.
After talks with the Platypus Finance team, the hacker returned 90% of the stolen assets. The project minimised losses to around 18,000 AVAX (~$171,000 at the time of writing).
Platypus has previously been attacked in February, resulting in unknown actors draining assets worth $8.5 million. In addition, the project’s stablecoin USP lost its peg after the hack.
Developers launched mainnet of Scroll L2 solution
The Scroll team, without formal notice, launched the mainnet of the same name built on ZK—Rollups.
According to Dune Analytics, in just over four days since launch, 354 ETH ($548 000) were moved on the L2 Ethereum solution. The minimum transfer is 0.0035 ETH (~$5).
Users can add support for the network to wallets and transfer funds from other Ethereum-based networks to zkEVM via third-party bridges such as Owlto Finance.
According to DeFi Llama, the project’s TVL reached $7.32 million.
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