Key Points:
- Coinbase CEO Brian Armstrong’s support for DeFi and call for legal action to set a precedent.
- Polygon’s Sandeep Nailwal shares insights into the $1 billion investment in ZK rollups.
- The potential dominance of decentralized stablecoins in the cryptocurrency market.
Welcome to Finance Redefined, your weekly source of vital decentralized finance (DeFi) insights. This curated newsletter keeps you informed about the significant developments from the past week in the DeFi space.
In the recent DeFi landscape, Coinbase’s CEO defended the emerging ecosystem in the face of increasing calls for regulatory action, while Polygon’s CEO reported positive returns on the company’s $1 billion investment in zero-knowledge proofing (ZK).
The co-founder of MakerDAO believes that decentralized stablecoins could potentially dominate the cryptocurrency market, while Solidus Labs alleges that decentralized exchanges have become a hub for money laundering activities.
The top 100 DeFi tokens experienced another mixed week, with a bearish tilt as most tokens displayed red figures on the weekly charts.
Coinbase CEO Advocates for DeFi and Legal Precedent
Brian Armstrong, the CEO of Coinbase, voiced his support for DeFi protocols. In a recent social media post, Armstrong urged DeFi projects to consider pursuing legal action to establish a legal precedent, citing the consistent commitment of the legal system to uphold the rule of law. He argued that the current approach primarily pushes this crucial industry into foreign jurisdictions.
Decentralized Stablecoins Could Take Center Stage in Crypto: MakerDAO Co-founder
Rune Christensen, co-founder of MakerDAO and a DeFi pioneer, believes that decentralized stablecoins could potentially become dominant players in the stablecoin market if cryptocurrencies realize their full potential. Speaking at Token2049 in Singapore, Christensen shared his vision for the future of decentralized stablecoins like Dai (DAI) and their role in the broader crypto economy.
Polygon Co-founder: $1 Billion ZK Rollup Investment Proves Successful
Sandeep Nailwal, co-founder of Polygon, is confident that the company’s commitment of $1 billion to the development of zero-knowledge (ZK) proof-based scaling solutions for the Ethereum ecosystem has paid off. During a keynote speech at the Token2049 conference in Singapore, Nailwal discussed the progress of “Polygon 2.0″ scaling efforts and the promise of ZK-safe recursive technology in creating a seamlessly interoperable blockchain ecosystem.
Decentralized Exchanges Draw Traders Engaged in Cryptocurrency Laundering: Solidus Labs
According to market monitoring firm Solidus Labs, over the past three years, more than 20,000 cryptocurrency tokens have been manipulated through wash trading on decentralized exchanges (DEX). In its “Cryptocurrency Market Manipulation Report 2023,” released on September 12, Solidus Labs claimed that nearly 70% of cryptocurrency trades executed in a sample of 30,000 Ethereum-based DEX liquidity pools were involved in laundering activities since September 2020, representing approximately $2 billion in cryptocurrencies.
DeFi Advocacy Group Takes on “Patent Troll” Targeting DeFi Protocols
A DeFi advocacy group has urged the United States Patent and Trademark Office to review a patent owned by a company it describes as a “patent troll”—a company that seeks to profit from patent lawsuits. The DeFi Education Fund filed a petition on September 7, requesting the invalidation of a patent held by True Return Systems. The petition spans more than 90 pages and aims to protect DeFi protocols from potential patent-related challenges.
DeFi Market Overview
Data from Cointelegraph Markets Pro and TradingView reveals a mixed performance for the top 100 DeFi tokens by market capitalization, with most tokens recording losses on the weekly charts. Despite this, the total value locked in DeFi protocols has remained above $49 billion.
Thank you for staying updated with our recap of the most influential DeFi developments from this week. Join us next Friday for more stories, perspectives, and insights from this ever-evolving field.
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