Welcome to the latest edition of Cointelegraph’s decentralized finance newsletter.
A week filled with positive developments in the DeFi space, including nine-figure fund raises, successful product launches, and soaring token prices, was somewhat marred by the news of two serious security attacks. Read on for the full scope of the developments throughout the week.
What you are about to read is the smaller version of this newsletter designed to be brief. For the full version of DeFi developments during the last week, please send your email below.
Borderless Capital launches $ 500 million fund to support Algorand ecosystem
Venture capital firm Borderless Capital announced the launch of ALGO Fund II this week, a $ 500 million initiative raised to support the creation of digital asset projects on the Algorand blockchain.
Announced through a blog mail by the Algorand Foundation, the capital will specifically target decentralized applications, niche liquidity mining services, loans, loans and agricultural production, as well as non-fungible tokens.
– Capital without borders (@borderless_cap) November 30, 2021
Algorand is an open source decentralized blockchain most widely regarded for its speed, efficiency, security, and status as a potential competitor to Ethereum’s dominance.
Launched in November 2018, Borderless Capital has already invested in more than 100 blockchain-related projects through its $ 400 million ALGO Fund I, including Tinyman, Yieldly, Opulous, and Flare Network among others, as well as established programs successful accelerators in three major continental industries.
Iota Prepares to Launch a Decentralized Smart Contract Platform
Distributed ledger platform Iota announced the launch of the decentralized layer one smart contract network assembly and the attached ASMB token this week.
Assembly will seek to drive the adoption of smart contract services and foster an environment for creators, developers, and community advocates that facilitates the expansion of the Iota ecosystem across Web 3.0 sectors, including the metaverse.
Expected to launch in 2022, Assembly will operate in parallel to Iota and will use the existing infrastructure of the network, especially the directed acyclic graphical structure, to operate as an interoperable and autonomous bridge that takes advantage of the benefits of scalability and security, among others.
Decentralized app developers will be able to create their own smart contract chains and set individual parameters for low-cost execution fees, a feature that will also allow service providers to issue stablecoin assets on the chain to incentivize validators.
In a recent Twitter post, Iota revealed that bettors can earn rewards in both Shimmer (SMR) and ASMB tokens upon launch of the networks, stating that “for every $ 1 MIOTA wagered, users receive $ 1 SMR and 4 microASMB every 10 seconds, for 90 days, once the betting has started. “
Bettors get not just 1 token, but 2! And after @shimmernet and @montage_net network launch, you can receive even more rewards by protecting both networks when betting $ SMR and $ ASMB.
Visit: https://t.co/gx9ucphSR2#IOTA pic.twitter.com/VjV77gPK5Q
– IOTA (@iota) December 2, 2021
DeFi projects MonoX and BadgerDAO mined for $ 150 million
Decentralized MonoX and BadgerDAO projects fell victim to sophisticated individual protocol attacks this week that resulted in more than $ 150 million in asset losses.
The MonoX platform suffered a single cyber attack on November 30 when an error in the smart contract exchange contract allowed manual manipulation of the price of MONO tokens, an asset that had just been listed on the Huobi exchange in the previous days.
After pushing the MONO token to what the team described as “sky high” levels, the hackers traded the funds for other assets on the platform and made lucrative profits.
In the days after the breach, the MonoX team confirmed that the losses totaled around $ 31 million, along with the release of a statement of regret, the gist of which read:
“Days like yesterday are horrible, there is no sugar covering the harsh reality of a contract that is exploited and people lose money. Our fans put their faith in a new project like us, and yesterday we let them down ”.
Similarly, but with no affiliation with the other, BadgerDAO was also the victim of financial exploitation this week. Although community members raised concerns on Discord regarding suspicious increases in allocation in the previous days, administrators did not perceive this to be a threat as highlighted in this. cheep of 0xMoves.
According to blockchain analytics service PeckShield, BadgerDAO’s losses have accumulated $ 120 million as of this writing, including 2,078.76 Bitcoin (BTC), 30.27 Bitcoin with interest, and 151.32 Ether (ETH).
Badger’s team has now responded by opening a full investigation into the events, as well as pausing smart contract activity until security on the protocol stabilizes once more.
Related: Counting the biggest DeFi hacking incidents in 2021
Analytical data reveals that DeFi’s total locked value has risen 8.01% for the week to a figure of $ 159.5 billion.
Data from Cointelegraph Markets Pro and TradingView reveals that DeFi’s top 100 tokens by market capitalization performed reasonably well in the last seven days.
Terra (LUNA) soared to record highs this week thanks to gains of 66.85%. Uniswap (UNI) posted a healthy 14.3%, while Tezos (XTZ) posted a 12.70% increase. Chainlink (LINK) and Oasis Network (ROSE) claimed fourth and fifth place this week with gains of 8.1% and 8%, respectively.
Analysis and current affairs of the last week:
Thanks for reading our roundup of this week’s most impactful DeFi developments. Join us again next Friday for more stories, ideas, and education in this dynamically moving space.