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A new report by blockchain security company Beosin revealed that the total amount of crypto assets lost to exit scams and rug pulls was higher than the amount stolen from decentralized finance (DeFi) projects through exploits and attacks last month.
Beosin also discovered that losses from the exploits in May were down 79% compared to April, signaling a continued decline for two consecutive months.
Losses From Rug Pulls Surpass DeFi Exploits
Over $45 million was lost to crypto rug pulls in May across six incidents. The largest exit scam was that of DeFi lending protocol Fintoch – suspected of being a Ponzi scheme – which vanished with 31.6 million USDT ($31.6 million) in users funds on May 24.
The second-largest rug pull was the theft of roughly $5.9 million by Inferno Drainer, a multi-chain scam service provider, which affected about 5,000 victims. Another notable rug pull was executed by the developers of decentralized exchange (DEX) Swaprum on May 19. The team drained $3 million in Ether (ETH) tokens from the protocol’s liquidity pools.
On the other hand, DeFi exploits amounted to $19.6 million worth of stolen crypto assets. The largest exploit was the attack on Arbitrum-based liquidity protocol Jimbos, which compromised over 4,000 ETH worth about $7.5 million. The Ethereum-based crypto mixer Tornado Cash was also hacked for roughly $2 million.
DeFi protocol Deus Finance, which has fallen victim to many attacks, was hacked again on May 5 through a public burn vulnerability on its stablecoin DEI (DEI). The attacker exploited the DEI token contracts on the BNB Smart Chain (BSC) and Arbitrum network and made away with more than $6 million.
Raising Anti-Fraud Awareness
The blockchain security firm also noted that hardware wallet-related security incidents increased in May. Beosin warned against a new type of coin theft using shared or public charging devices to implant malicious programs that could steal private keys.
“The amount involved in Rug Pulls exceeded that in attacks this month, and new ways of stealing coins such as using shared rechargeables to steal private keys also emerged. Hackers and scammers are gradually shifting the target of their attacks from various project parties to ordinary users,” Beosin said.
The firm urged users to raise anti-fraud awareness, learn several methods for safeguarding their assets, and conduct due diligence on projects before investing in them. The largest exit scam in May was executed by Fintoch, which absconded with users’ funds worth $31.6 million.
The post Crypto Rug Pull Losses Outpaced DeFi Exploits in May: Report appeared first on CryptoPotato.

The largest exit scam in May was executed by Fintoch, which absconded with users' funds worth $31.6 million.

cryptopotato.com

Crypto Rug Pull Losses Outpaced DeFi Exploits in May: Report


Increasing decentralized finance (DeFi) activity on Cardano has pushed the total value of assets locked on the network to the highest point this year.



According to DeFillama data, Cardano’s Total Value Locked (TVL) sits at $180 million – the highest since May 2022, when it was $201 million.



ADA Token TVL Surges



In terms of the ADA token, Cardano’s DeFi ecosystem also reached an all-time high of 463 million ADA on May 31. On May 20, BeInCrypto reported that the TVL had crossed the 400 million tokens milestone.



Cardano DeFi TVL (Source; DeFillama)



DeFi activities on Cardano saw consistent growth from the start of the year when the TVL was just around $50 million. Since then, the network has seen increased interest, suggesting that its DeFi ecosystem was thriving.



Cardano DEX Volume Increasing



The increasing TVL has also coincided with a rising DEX volume, according to DeFillama data. Cardano recorded its highest weekly transactions volume during the last three weeks of May when it rose to $98.26 million from $41 million.



Cardano DEX Volume (Source: DeFillama)



This trend continued into June, with the current 7-day transaction volume at $127.1 million. DeFillama data showed that the first two days of this month have already seen $35.28 million.



Top Protocols Responsible for The Growth



MinSwap is the largest Cardano DeFi protocol with a TVL of $65.87 million. The DEX’s weekly volumes have ascended since last year and reached an ATH of over $72 million last week, thanks to the community interest in meme coin SNEK. 



Besides its TVL, MinSwap has 17.53k UAWs (unique active wallets) which has grown by 33.5% in the last seven days.



Cardano Top 10 Protocols (Source: DeFillama)



The collateralized debt protocol, Indigo, saw its TVL grow by 15.95% in the last seven days. It has seen a 6x increase in TVL since launch, and volume puts it on the list of top 11 CDP protocols across all chains.



Meanwhile, the Liqwid protocol has also seen a 7-Day increase of 8.92% in its TVL. The lending protocol has a TVL of $13.38 million. Cardano’s first stablecoin Djed has $14.28 million locked in TVL.



With the rise in TVL, ADA is up 3.3% in the last seven days and is trading at $0.376, according to BeInCrypto data.



        
          
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The post Cardano (ADA) DeFi Activities Drive TVL to Yearly High appeared first on BeInCrypto.


Cardano's DeFi activity has seen the network TVL rise to the highest point this year amid a surging DEX volume.
The post Cardano (ADA) DeFi Activities Drive TVL to Yearly High appeared first on BeInCrypto.


beincrypto.com

Cardano (ADA) DeFi Activities Drive TVL to Yearly High

Arbitrum (ARB), a prominent governance token in the decentralized finance (DeFi) ecosystem, recently witnessed a decent surge in price following renewed buying activity from a well-known DeFi whale address. 
Large-scale investors often influence market sentiment and can significantly impact the price of a given asset. However, as the rally unfolds, questions arise about the sustainability of this upward momentum and its implications for the future of Arbitrum.

Whale’s Unusual Buying Activity Coincides With ARB’s Rally
Arbitrum’s (ARB) current price of $1.24 on CoinMarketCap highlights its remarkable performance, with a noteworthy 3.4% rally witnessed within the past 24 hours, followed by an impressive seven-day climb of 7%. Interestingly, this surge in value coincided with unusual buying activity associated with renowned trader Andrew Kang’s crypto addresses.


Particularly noteworthy is the fact that Andrew Kang, co-founder of Mechanism Capital, has been making some interesting movements within the Arbitrum ecosystem.
Kang put $1 million worth of stablecoins into Arbitrum pools and allocated nearly a quarter of the funds to the purchase of RDNT tokens. RDNT is the native token of the DeFi lending platform Radiant Capital.



After filling his bags with RDNT, Kang subsequently exchanged his newly acquired tokens and existing RDNT reserves for $867,000 worth of ARB. 
These transactions were further followed by Kang depositing the proceeds into Radiant Capital, where he borrowed Circle’s USD Coin. These details have been revealed through data obtained from Lookonchain, a reliable data resource.

Seems like Andrew Kang is using leverage to go long $ARB on @RDNTCapital.
Buy $ARB → Deposit $ARB → Borrow $USDC → Buy $ARBhttps://t.co/PQwi0Zj9TT pic.twitter.com/afXjeRtTpv
— Lookonchain (@lookonchain) June 2, 2023
Multiple Whales Seize Opportunity As ARB Price Improves
In addition to Kang’s intriguing buying activity, another significant player, known by the address “0xf59b,” has also recognized the potential in ARB’s upward trajectory. This whale made a strategic move by depositing 1.2 million ARB tokens, equivalent to $1.5 million, into the popular cryptocurrency exchange OKX.

Whale”0xf59b” finally waited for the rise of $ARB and deposited 1.2M $ARB ($1.5M) into #OKX 30 minutes ago.
He withdrew 1.2M $ARB from #OKX on May 8th, and the buying price may be around $1.2.https://t.co/cJReZfg007 pic.twitter.com/jFwBRtPUpK
— Lookonchain (@lookonchain) June 2, 2023
This whale’s decision to pull the tokens out from OKX on May 8 and potentially purchase them at around the $1.2 mark suggests a deliberate strategy of waiting for a price increase before taking advantage of their holdings. By carefully timing their actions, this entity sought to maximize their potential gains as ARB’s value climbed.
These recent large-scale investments signify a growing optimism surrounding Arbitrum’s Layer 2 solution, despite the challenges it has faced in the market recently. The renewed interest from both Kang and the whale behind the address “0xf59b” reflects a belief in the long-term viability and potential profitability of ARB.
Furthermore, these strategic moves by multiple whales indicate a broader sentiment within the crypto market. As the Ethereum network gradually recovers from the recent drop, there is a growing expectation of increased activity on Layer 2 networks. This anticipation sets the stage for a potentially bullish cycle for these networks, including Arbitrum.
(This site’s content should not be construed as investment advice. Investing involves risk. When you invest, your capital is subject to risk)
-Featured image from The Conversation


Arbitrum (ARB), a prominent governance token in the decentralized finance (DeFi) ecosystem, recently witnessed a decent surge in price following renewed buying activity from a well-known DeFi whale address.  Large-scale investors often influence market sentiment and can significantly impact the p...

newsbtc.com

Whale’s ARB Accumulation Rekindles Momentum For DeFi Token – Here’s Why

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In the ever-evolving landscape of finance, DeFi (decentralized finance) has been proven to be a revolutionary technology that removes the need for centralized institutions and intermediaries from the financial markets and enables users to transact faster.
With these applications, users can quickly lend or borrow digital assets, trade their digital assets and earn interest on their crypto assets without needing a centralized exchange.
According to GlobeNewswire, the global DeFi market is poised for exponential growth, projected to reach $232.2 billion by 2030, at a CAGR (compound annual growth rate) of around 42.6%, demonstrating the immense potential of this disruptive technology.
As businesses recognize the immense opportunities presented by decentralized finance, partnering with a reputed blockchain application development company and investing in DeFi app development has become an imperative step for businesses to stay ahead in the competitive market.
DeFi app development cost
When embarking on the journey of building a DeFi app, entrepreneurs often ponder over the question – how much does it cost to develop one for their businesses?
On average, the estimated cost to build a successful DeFi app can range from $50,000 to $270,000 or more for highly complex applications.
However, the actual cost can vary significantly, depending on various factors, including the app’s features, complexity, platform, geographical location of the development team and more.
Let’s dive deeper to explore the factors that determine the cost to build a decentralized finance application or likewise.
Significant factors that contribute to DeFi app development cost
Assessing the cost of DeFi app development holds the utmost importance in making informed financial decisions. This crucial aspect is influenced by a multitude of factors, and here we provide an in-depth exploration of the key determinants.
Geographical location of the development team
The location of the blockchain development company plays a vital role in determining the overall budget for DeFi app development.
For instance, the hourly rate of a web or app development company located in regions like Asia or Africa is comparatively less than that of app developers in the USA, impacting the overall cost.
Features and functionalities
A successful DeFi application should have a range of features and functionalities to offer a seamless experience to the users and stand out from competitors while taking your platform to greater heights.
However, adding extra features also adds to the overall development cost. Therefore, to keep the cost within budget, you should always focus on adding only those features that add value to the app.
UI/UX design
A seamless UI/UX design is the driving force behind the success of any application – and the DeFi app is no exception.
Creating an intuitive interface that can ensure user engagement and retention requires multiple prototypes to be tested and a team of highly proficient designers – thereby, the cost of development can vary.
The most vital aspects of UI/UX design that affect the overall development budget include the following.

Button placements
Typography
Color psychology
Visual elements
UI optimization
Branding

Types of blockchain technology
There are several blockchain platforms available, such as Solana, Hyperledger, Polkadot, Ethereum, Polygon and so on.
Each of these platforms differs from one other in regard to transaction speed and cost components, affecting the overall development cost.
For instance, the DeFi system created using Ethereum, the most popular blockchain technology, might cost more than other platforms.
App’s complexity
The complexity of your decentralized application directly influences the development cost. Simple, moderately complex and highly complex apps have varying functionalities and levels of complexity.
The more complex the app, the longer it takes to build, increasing the development cost. Understanding the complexity level and aligning it with your budget is crucial for successful development.
Let’s have an estimated cost breakdown based on the app’s complexity.



App Complexity Level
Estimated Cost
Duration


Simple App
$50,000 to $90,000
3 to 6 months


Moderately Complex App
$90,000 to $150,000
6 to 9 months


Highly Complex App
$150,000 to $270,000
9 months to a year or more



Final thoughts
Decentralized financial application development has transformed the financial market, offering a transparent and decentralized platform for transacting digital assets.
However, developing a DeFi app is a complex and costly process that involves several important factors.
Having a clear understanding of these factors can help you keep the app development cost within budget and also make your application a success in the market.

Sudeep Srivastava is the CEO of blockchain software development company Appinventiv and is someone who has established himself as the perfect blend of optimism and calculated risks. Having built a brand that is known to tap the unexplored ideas in the mobile industry, Sudeep spends his time exploring ways to take Appinventiv to the point where technology blends with lives.
 
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The post How Much Does DeFi App Development Cost? appeared first on The Daily Hodl.


In the ever-evolving landscape of finance, DeFi (decentralized finance) has been proven to be a revolutionary technology that removes the need for centralized institutions and intermediaries from the financial markets and enables users to transact faster. With these applications, users can quickl...

dailyhodl.com

How Much Does DeFi App Development Cost?

The Blockchain Association and DeFi Education Fund have filed an amicus brief calling the U.S. Treasury Department’s decision to sanction Tornado Cash “unprecedented and unlawful.”
Until OFAC imposed sanctions, Tornado Cash was the most popular privacy-protecting tool on Ethereum, the world’s second-largest digital asset platform. The software is self-executing computer software published on the Ethereum blockchain, and it functions automatically without any human intervention or assistance.

Blockchain Association Takes On U.S. Treasury Over Tornado Cash Sanction
The filing argues that the decision to sanction Tornado Cash reflects a basic misunderstanding of the software and its workings. The protocol was the most popular privacy-protecting tool on Ethereum until the Office of Foreign Asset Control (OFAC) imposed sanctions.
The amicus brief highlights the importance of Tornado Cash as a tool for protecting the privacy of digital asset users. It argues that Americans are using digital assets more than ever, with 20 percent of American adults owning digital assets and 29 percent planning to buy or trade digital assets.
The brief also notes that software like Tornado Cash can be misused for illicit purposes but is primarily used for legitimate and socially valuable reasons. The filing further claims that the sanctions exceed OFAC’s statutory authority and result from “arbitrary-and-capricious decision-making.”


OFAC sanctioned the protocol on November 18, 2021, along with seven other entities, for their alleged involvement in facilitating ransomware payments. OFAC designated Tornado Cash as a “Specially Designated National” (SDN), meaning that U.S. persons are generally prohibited from engaging in transactions with or providing services to the protocol. The sanctions on Tornado Cash were imposed under Executive Order 13694, which targets the malicious cyber activities of individuals and entities.

As reported by Bitcoinist, Crypto think tank Coin Center has been one of the most vocal critics of the U.S. Treasury’s decision to impose sanctions on Tornado Cash. Coin Center argued that the sanctions on Tornado Cash were misguided and could have far-reaching consequences for the crypto industry.
Furthermore, Coin Center highlighted that Tornado Cash is an open-source protocol that allows users to mix Ethereum transactions to protect their privacy. While the platform could be used for illicit purposes, Coin Center argued that the same could be said for many other technologies, including cash and the internet.
Following the same line, cryptocurrency exchange Coinbase backed a group of plaintiffs who wanted sanctions imposed by the U.S. government against Tornado Cash to be removed. The plaintiffs, Joseph Van Loon, Tyler Al-meida, Alexandra Fisher, Preston Van Loon, Kevin Vitale, and Nate Welch, argue that the government cannot sanction Tornado Cash because it is “just software and, therefore, not a foreign national or person.”

The Blockchain Association and DeFi Education fund are leading nonprofit organizations dedicated to improving the policy environment for the digital asset economy and ensuring blockchain technology innovation can thrive. They work to educate policymakers, regulators, courts, and the public about the nature and benefits of blockchain technology and decentralized finance (DeFi).

The decision raises serious regulatory and constitutional questions that have wide-ranging effects on the blockchain ecosystem and the digital asset economy. This case could set a precedent for how governments regulate blockchain technology and decentralized finance, making it crucial for the court to consider the arguments presented in the brief fully.

Featured image from Unsplash, chart from TradingView.com


The Blockchain Association and DeFi Education Fund have filed an amicus brief calling the U.S. Treasury Department&#8217;s decision to sanction Tornado Cash &#8220;unprecedented and unlawful.&#8221; Until OFAC imposed sanctions, Tornado Cash was the most popular privacy-protecting tool on Ethereu...

bitcoinist.com

Tornado Cash Sanctions Called “Unprecedented And Unlawful” By The Blockchain Association

ARB price notched a double-digit gain after a popular DeFi whale address resumed buying the governance token, but is the rally sustainable? 

cointelegraph.com

Arbitrum price soars after DeFi whale address resumes ARB accumulation

The top 100 DeFi tokens had a bullish last week of May, with most of the tokens recovering from two weeks of bearish pressure.

Losses from crypto rug pulls outpaced DeFi exploits in May: Finance Redefined

Sberbank, the largest bank in the Russian Federation, announced that it opened access to its in-house decentralized finance (defi) platform to allow developers to test its capabilities. Reports indicate that Sberbank’s Comunity, the Ethereum-based blockchain decentralized finance solution, will leave the open testing phase later this year.
Sberbank Opens Defi Platform for Testing
Sberbank, one of the leading financial institutions in Russia, has announced that it will be opening developer access for its in-house built decentralized finance solution, called Comunity. Alexander Nam, head of Sberbank’s Blockchain Lab, stated that now other developers can connect their solutions to the Comunity platform in a testing capacity.
Sberbank’s Comunity defi platform’s development was announced in February, when the service was already in closed beta testing phases, according to Sberbank’s blockchain laboratory product director Konstantin Klimenko. He also stated that Comunity was slated to start its open testing phase in March.
Sberbank’s Comunity is a Russian Ethereum-based blockchain development that seeks to link traditional banking services with cryptocurrency, allowing its customers to experience these services using Russian rubles and with the support of a regulated financial institution.
The bank received a license to issue digital assets on March 2022 and conducted the first digital transaction through its subsidiary Sberfactory. The transaction issued a one billion ruble instrument with a 3-month maturity.

State of Crypto in Russia
Sverbank’s blockchain conference also served to show the progress and popularity of cryptocurrency assets in the country. Data revealed at the event indicated that 17 million Russians, accounting for approximately 12% of the population, possessed cryptocurrency wallets.
Also, in the same way, more than 3 million Russians are actively engaged in cryptocurrency activities like speculation trading and staking tokens, showing that cryptocurrencies have penetrated the Russian market.
In an intervention during the event, Anatoly Aksakov, Chairman of the State Duma Committee on Financial Markets, offered some insight into how the Russian legislative body was dealing with cryptocurrency regulation issues.
Aksakov stated that the oversight of the cryptocurrency market in this regard is expected to be delivered to the Federal Taxation Service, a federal body dedicated to registering legal entities and natural persons as individual entrepreneurs.
Aksakov explained that taxing crypto was one of the most critical issues and that the State Duma strived to balance innovation and compliance with the upcoming cryptocurrency regulatory framework being discussed.
What do you think about Sberbank opening its defi platform for testing? Tell us in the comments section below.


Sberbank, the largest bank in the Russian Federation, announced that it opened access to its in-house decentralized finance (defi) platform to allow developers to test its capabilities. Reports indicate that Sberbank&#8217;s Comunity, the Ethereum-based blockchain decentralized finance solution, ...

news.bitcoin.com

Largest Russian Bank Sberbank Opens Developer Access to in-House Defi Platform

In a recent post, Ripple CTO, David Schwartz, explained Automated Market Makers (AMMs) – a vital component in the decentralized finance (DeFi) framework, and their trading strategies for profit.

Schwartz states that AMMs thrive when an asset is volatile but does not change its price direction much. Schwartz explained further that an asset whose volatility exceeds its long-term trend would have a positive average percentage movement. However, if the long-term trend is negative, it will reduce the average slightly and vice-versa. 
It’s Not Difficult to Create A Trading Strategy, Ripple CTO
According to the Ripple CTO, it is not difficult to create a trading strategy to track the average percentage movement of an asset. 
He further explained that the trading strategy of an AMM is advanced compared to a simple trading strategy and focuses on price volatility.

Schwartz, however, added a disclaimer at the end of his analysis. He stated that the AMM trading strategy only works for an AMM between an asset with a fixed price and one whose price is volatile enough to overcome its long-term trend. 
Also, he believes that although AMM works even when the assets don’t meet the stated conditions, their behavior is different. From his analysis, a notable deviation will only occur with a long-term negative price movement that exceeds the volatility.
Crypto Enthusiast Reacts To Analysis
Reacting to Schwartz’s AMM analysis, Molly Elmore asked if XRP would be the asset with a fixed price paired with every other asset on the XRP ledger (XRPL).

In response, Schwartz stated that the AMM is not exclusive to XRP and can function between any asset pair. However, the trading strategies will differ mathematically if both assets are volatile. 
Citing the BTC/XRP pair as a reference, Schwartz stated that although both assets are volatile, the pairing is still great.
Additionally, he stated that if you are bullish on XRP and BTC, investing in an XRP/USD AMM implies holding much USD that can go up.
Notably, holding shares of an XRP/BTC AMM captures more of the upward price movement of XRP and BTC if the bullish sentiment is correct.
Schwartz continued his analysis, stating that if XRP and BTC’s price doubles, an XRP/USD AMM has a worst-case (no volatility and no market making) yield of around 40%.
In comparison, an XRP/BTC AMM has a worst-case yield of 100%. On the flip side, Schwartz noted that the outcome is worse if your bullish sentiment is wrong. 
If both XRP and BTC reduce by 50%, the worst case loss is 50%, while for an XRP/USD AMM, the worst case loss is about 30%. So he believes XRP USD is safer while XRP/BTC is volatile. Schwartz noted that his analysis seemed complex and explained further in a tweet. 
He stated that AMMs charges trading fees, and volatility causes people to trade with AMMs. Therefore, AMMs turn volatility into fees.
Featured image from Pixabay and chart from Tradingview.com


In a recent post, Ripple CTO, David Schwartz, explained Automated Market Makers (AMMs) &#8211; a vital component in the decentralized finance (DeFi) framework, and their trading strategies for profit. Related Reading: Litecoin Breaks $95 As Whale Transactions Spike Schwartz states that AMMs thriv...

Ripple CTO Schwartz Reveals Insights Into AMM Trading Strategy


The community’s voice within crypto ecosystems has never been more relevant and is leading a fresh approach to Decentralized Finance (DeFi). The power of voting within the crypto communities is reshaping the sector and influencing the operations of leading DeFi platforms such as Uniswap, MakerDAO, and Synthetix. 



By democratizing decision-making processes, these platforms allow users to determine the path forward, reflecting the core ethos of blockchain and DeFi: decentralization.



Crypto Community Decisions in Uniswap’s Development



Uniswap, a top decentralized crypto exchange, witnessed an intriguing development when its community voted against a proposal to charge liquidity providers (LPs) fees. 




“We propose implementing a protocol fee equal to ⅕ of the pool fee across all Uniswap v3 pools and turning on the fee switch for Uniswap v2. The scope of this proposal is to implement a fee for Uniswap pools, implement a system to claim earned fees, and trustlessly sell the fees earned for an asset designated by the UNI community,” reads the proposal. 




The snapshot poll concluded with over 45% of participants voting against the fee. On the other hand, the remaining votes were divided amongst varying fee suggestions. 



        
          
            Become part of the DeFi revolution and join the Top 11 Crypto Communities in 2023!

          
        
      
    



The vote highlighted how user sentiment is becoming the main driving force behind changes on DeFi platforms. Despite LPs being large market makers and vital to the protocol’s functioning, the community’s vote reaffirmed their exemption from fees. 



This emphasizes the significance of crypto community opinion in shaping Uniswap’s future. And the outcome will likely shape the forthcoming formal poll.



MakerDAO’s Community-Driven Asset Diversification



At the same time, the MakerDAO community’s decision-making power is facilitating diversification into traditional financial assets. 



Recently, the community highlighted adding a new real-world asset vault, BlockTower Andromeda. This vault will invest up to $1.28 billion in short-dated US Treasury bonds, representing a significant diversification from crypto-centric investments.



This decision reinforces MakerDAO’s broader ambitions to diversify the reserve assets underpinning its $5 billion stablecoin DAI. 



Furthermore, the crypto community’s decision reflects a growing appetite for blending traditional financial instruments with crypto-native entities to achieve stable yields.



Synthetix Community’s Influence Over Platform Upgrades



Synthetix‘s community participation is impacting more than just investment strategies. It recently voted to transfer the remaining customer funds from the outgoing version one (v1) of its perpetuals market to version two (v2). 




“The primary motivation is to enforce sunsetting of outstanding positions in PerpsV1 in the least intrusive manner, leaving enough time for accounts with existing positions to close their positions,” reads the proposal. 




This decision shows that even platform upgrades, traditionally dictated by developers, are subject to community sentiment.



While the move will benefit users by increasing capital efficiency and risk management, the crypto community-driven decision was designed to shut down the v1 perpetuals market with minimal disruption or interference.



The Power of Decentralized Crypto Community Voting



The essence of DeFi rests on the principles of autonomy, transparency, and decentralization. And nowhere are these values more apparent than in decentralized voting. By actively empowering users to contribute to decision-making processes, DeFi platforms harness the collective wisdom of their communities.



Therefore, they nurture a decentralized governance model that defies traditional hierarchical systems.



DeFi Users Worldwide. Source: Statista



Decentralized voting transforms users from passive observers to active contributors. It enhances their commitment and engagement towards the platform. This transformative process ensures the platform’s development aligns with its user base’s best interests, promoting long-term growth and stability.



Empowering crypto communities is proving to be more than just a symbolic gesture. As the recent decisions at Uniswap, MakerDAO, and Synthetix show, user votes can guide platform development, investment strategies, and even platform upgrades.



        
          
            Looking to forge an unshakeable crypto community? Uncover the secrets in our must-read guides on crypto community building. Time to shine!
9 Best Strategies for Amplifying Your Crypto Community’s Growth
Effective Crypto Community Management: A Comprehensive Guide

          
        
      
    



Crypto communities are becoming the lifeblood of DeFi platforms. As more DeFi ecosystems recognize the value of decentralized decision-making, the trend of community-driven change will likely continue to shape the DeFi sector’s future.
The post Crypto Communities Vote Matters, Paving the Way for DeFi appeared first on BeInCrypto.


Decentralized voting in crypto communities is playing a pivotal role in DeFi, influencing platform development, investment strategies, and strengthening the power of decentralization.
The post Crypto Communities Vote Matters, Paving the Way for DeFi appeared first on BeInCrypto.


Crypto Communities Vote Matters, Paving the Way for DeFi


Decentralized Finance (DeFi) hacks have fallen dramatically, but crypto rug pulls are on the rise, according to a new survey.



The unregulated Wild West nature of crypto often breeds exit scams and hacks. But while DeFi infrastructure is getting secure, and hence the amount lost to attacks is decreasing, the greed of Web3 users is proving more troubling.



DeFi Hacks in Decline



According to the blockchain security firm Beosin, the amount lost to DeFi hacks has declined for the last two months. In May, there were 22 incidents of the DeFi exploit, wherein hackers stole $19.69 million in total. 



Beosin says that the amount lost has reduced by around 79% from April’s data.



The Jimbos Protocol hack from last weekend contributed $7.5 million to the total $19.69 million lost to hacks. The liquidity protocol based on the Arbitrum chain lost 4,090 Ethereum (ETH) due to a lack of slippage control of liquidity-shifting operations. 



Later on Wednesday, the project announced an $800,000 bounty for those tracking the hackers and bringing back the funds.



Reason for Decline in DeFi Hacks



As technology is gradually maturing, various cybersecurity experts, white hat hackers, and on-chain sleuths contribute to improving the infrastructure. For example, this week, dWallet Labs discovered a critical vulnerability in the TRON multi-sig wallet and reported it to the team. 



Even in March, the blockchain security firm Halborn discovered vulnerabilities that affected Dogecoin and 280 other networks, putting over $25 billion worth of crypto at risk.



According to Beosin’s studies, over half of the projects that became victims of DeFi hacks were unaudited. Hence, the firm urges the projects to audit their smart contracts from professional auditing companies before deploying the project on the mainnet.



Indeed, auditing might reduce the probability of vulnerabilities being unseen in projects.



$45.02 Million Lost to Rug Pulls 



Of course, major DeFi projects are auditing their smart contracts. And additionally, white hat hackers are also helping discover vulnerabilities. Hence, amounts stolen in DeFi attacks have declined.



But there are no limits to the greed of crypto investors. Leveraging greed, the bad actors might launch lucrative projects offering guaranteed returns and conduct a rug pull.



The incidents when the core team of projects steals users’ funds and disables their online presence is called a rug pull.



Bad actors stole $45.02 million through rug pulls last month. Among them, the DeFi project Morgan DF Fintoch itself is responsible for stealing $32 million in users’ funds.



It promised a daily return on Investment (ROI) of 1% and claimed to be owned by Morgan Stanley. The project used a photo of a paid actor on its official website and claimed him to be the CEO.



The GREED Experiment



A Solana developer ran the “GREED experiment,” to educate people about crypto fraud. BeInCrypto reported that the developer launched a token, GREED, and asked the community to connect their wallets to the website and give write permissions to their Twitter accounts to increase the probability of getting a bigger airdrop.



        Learn more about airdrops here.

      
    



More than 55,000 people connected their wallets, and over 42,000 gave access to publish the Tweets from their accounts. Lastly, the developer ended the experiment with a tweet :




“Greed consumed me.



I connected my wallet to a random site, signed a blind tx, handed over write perms for my Twitter.



This was the $GREED experiment.”




Got something to say about DeFi hacks, rug pulls, or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or Twitter.



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The post As DeFi Security Gets Stronger, Hackers Turn to Rug Pulls to Make a Buck appeared first on BeInCrypto.


Despite a 79% decline in Decentralized Finance (DeFi) attacks, the prevalence of crypto rug pulls remains widespread.. What can be the reason?
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As DeFi Security Gets Stronger, Hackers Turn to Rug Pulls to Make a Buck

Over $45 million was lost to exit scams in May while exploits on DeFi protocols racked up less than half that amount over the same period.

Losses from crypto rug pulls outpaced DeFi exploits in May: Beosin


The industry experienced a mixed performance in May, with DeFi seeing a decrease in total value locked (TVL) but an increase in its share of on-chain activity. The dApp industry grew, while blockchains, except for Tron, regressed in TVL.



According to the latest DappRadar report, the crypto industry had a mixed bag in May, with different parts of the industry simultaneously progressing and taking steps back. 



Blockchain TVL Regresses



The total value locked (TVL) in DeFi protocols—or the funds being used in them—saw a 4.3% decrease in May, slipping to $79.16 billion USD. However, DeFi’s share of on-chain activity rose to 31%. So even though more users are taking advantage of its protocols, they’re playing with less collectively.



It wasn’t all bad, though. The dApp industry grew by 9.97% in May, reaching an average of 1,967,051 daily unique active wallets (dUAW), reflecting a steady increase in web3 interest.



Total Value Locked (TVL) Top Blockchains, April-May 2023. Source: DappRadar



Regression was the key takeaway for blockchains in May, as TVL dropped almost across the board. One exception in the report was TRON, which grew a little under 1% over the month. 



The biggest loser in this time period was Fantom (FTM). Its TVL dropped by 37% to $308 million due to its association with the Multichain turmoil caused by rumors of potential arrests in China. Multichain’s native token, MULTI, experienced a severe 49% decline, affecting Fantom’s assets and triggering a shift to Arbitrum. 



NFT Trading Volumes Down 



The NFT market experienced a mixed performance in the past month, reflecting a broader trend in the industry. Trading volume dropped below $1 billion for the first time since December 2022, with May’s NFT trading volume declining sharply by 44% to $675 million compared to the previous month.



NFT Trading Volume and Sale Count. Source: DappRadar



In May 2023, Blur took a 65% market share and earned $442 million in NFT sales. The former king of the NFT marketplaces, OpenSea, had a 27% market share and $183 million in revenue. Despite Blur’s dominance, OpenSea had a significantly higher number of traders, with 377,087, than Blur’s 36,673. This reflects something we’ve known for a long time: Blur appeals to a certain kind of market participant. Namely, those who want a technical focus on higher-frequency trading and less on collecting.



However, Blur’s NFT lending service, Blend, has taken some attention away from its trading platform. NFT traders’ moving from the former to the latter has significantly contributed to the decline in trading volume.
The post dApp Market Grows 10% in May, DeFi TVL Falls Back 4.3% appeared first on BeInCrypto.


In May, the crypto industry showed mixed performance with DeFi experiencing a decrease in total value locked (TVL) but an increase in on-chain activity share. The dapp industry grew, while most blockchains saw regression in TVL. The NFT market had lower trading volumes while Blur dominated in mar...

dApp Market Grows 10% in May, DeFi TVL Falls Back 4.3%

MakerDAO, a decentralized money market on Ethereum for users to borrow and lend assets, including ETH, spends $27.66 million annually to keep the protocol running, DeFiLlama data on May 31 shows.
This sum of money is utilized to cover expenses such as taking care of the 97 individuals responsible for maintaining the lending and borrowing protocol and ensuring that the code operates smoothly without any issues.
MakerDAO Has Big Expenses
As of May 31, MakerDAO had spent slightly over $10.6 million in DAI to meet mounting expenses in 2023 alone. DAI is the algorithmic stablecoin minted and managed by MakerDAO, tracking the value of the USD. 

It differs from other popular fiat-pegged stablecoins like the USDT or BUSD, minted by a centralized entity demanding each token in circulation to be backed by an equal amount of fiat currency, primarily the USD.

Thus far, $10.6 million in DAI has been spent. Of this amount, 2,048,873 DAI was allocated for Protocol Engineering, and 15% of the total expenses were used for Sustainable Ecosystem Scaling.
385,875 DAI has been used for strategic finance, 537,448 DAI for growth, and 811,704 DAI for Oracles. Another 903,459 DAI has gone to developing and improving the user interface.
Employees get remunerations and other benefits from funds allocated to the Protocol Engineering Unit. The current monthly budget is 624,165 DAI and is forecasted to drop to 475,089.13 DAI. 
Specifically, MakerDAO has approved 396,895.13 DAI monthly for employee compensation and benefits. Only 2,072 DAI has been consumed by travel and other entertainment. 
However, besides expenditure on employee salaries and additional benefits, the DAO approved 75,250 DAI as payment for professional services.
The Protocol Engineering Unit doesn’t work with an external auditor. For transparency, they must submit an Expense Report for the MakerDAO community to assess and approve monthly. 
Under “Development and User Interface,” software expenses have notably increased, exceeding the forecasted amount. In the last month, MakerDAO spent 8,635.78 DAI to keep their servers at Amazon Web Services operation, exceeding the budget by 2,976.68 DAI.
LidoDAO Requires $16.81 Million Every Year
Funds used to keep MakerDAO running is roughly $10 million more than what’s required to maintain Aave and Lido. Data shows that Aave and Lido need $19.2m and $16.81m operational. 
The difference could be because of headcount since MakerDAO has 97 recognized employees while Lido has 83. Aave employee headcount remains private.

Still, Lido, a staking liquidity protocol, is the largest DeFi protocol by total value locked (TVL). As of May 31, LidoDAO had a TVL of $13.13 billion, twice that of MakerDAO, and nearly triple the TVL of Aave, which stood at $5.33 billion.



MakerDAO, a decentralized money market on Ethereum for users to borrow and lend assets, including ETH, spends $27.66 million annually to keep the protocol running, DeFiLlama data on May 31 shows. This sum of money is utilized to cover expenses such as taking care of the 97 individuals responsible...

MakerDAO Is The Most Expensive DeFi Protocol To Run, Requires Millions

Trader Joe, a Decentralized Exchange (DEX) on the Binance Smart Chain, is making waves in the Decentralized Finance (DeFi) world with its new Auto-Pools feature. According to the DeFi researcher Tindorr, this innovative solution offers a set-and-forget yield farming strategy for liquidity providers (LPs), eliminating laborious position management. 
Auto-Pools allows LPs to provide liquidity to multiple assets through Liquidity Books, with strategies built and hosted off-chain by the Trader Joe’s team in a “Black Box”. The scalability and adjustability of Auto-Pools make it a simple yet smart move by Trader Joe’s to outperform other emerging DEXs and ignite bullish sentiment for $JOE.

Can Trader Joe’s Auto-Pools Ignite Bullish Sentiment?
The combination of Liquidity Book and Auto-Pools provides capital efficiency and the best user experience approach for new DeFi users, attracting more liquidity to the protocol. With the current size of Trader Joe, it has a niche to capitalize on untapped areas in the DeFi market. While competitors are entering the market, being a first mover gives Trader Joe’s an advantage, with the main challenges for new protocols being liquidity and real usage.
For LPs, the first Auto-Pool called “The General” will launch soon, automatically rebalancing and auto-compounding all associated fees and rewards. By staking $JOE, users can get $JOE and earn protocol revenue generated, with a significant Annual Percentage Rate (APR) of 22.7%. 
The staked $JOE increased by 2x in just one week, indicating a strong bullish sentiment towards the token.
DeFi researcher Tindorr believes that Trader Joe’s Auto-Pools have the potential to revolutionize the DeFi market. When trading within one bin, the one-click yield farming solution with zero-slippage trading could be a game-changer for DeFi investors seeking a solid product-market fit. 
Furthermore, hosting the strategies off-chain gives Trader Joe’s a double-edged sword, with the ability to be highly scalable and dynamically adjustable but also requiring users’ trust in the “Black Box” execution.
Overall, Trader Joe’s Auto-Pools represents a pivotal moment for the DEX to outperform its competitors and attract more liquidity to the protocol. With its niche in untapped areas of the DeFi market, the combination of Liquidity Book and Auto-Pools offers capital efficiency and the best UX approach for new DeFi users. 
The first Auto-Pool, “The General,” is set to launch soon, and with the increasing staked $JOE and high APR, it’s worth keeping an eye on Trader Joe’s future growth.
Trader Joe And WOO Network Partner Up For A Revolutionary Omnichain Ecosystem
Trader Joe and WOO Network have announced a strategic collaboration to strengthen the liquidity of the WOO token on Arbitrum and to expedite growth towards a joint vision of a unified, omnichain future. Per the announcement, this partnership brings together both platforms’ resources and innovative capabilities to enhance market presence and drive innovation in the DeFi space.
As part of the collaboration, WOO traders and liquidity providers can now trade and earn WOO on Trader Joe’s decentralized exchange through the Liquidity Book, one of the most capital-efficient automated market makers (AMMs) in DeFi. Liquidity Book offers zero-slippage swaps and provides liquidity providers unparalleled ease and flexibility in deployment and management, making it an ideal tool to help boost WOO to new heights.

The collaboration between Trader Joe’s and WOO Network is initiated by their joint efforts on Arbitrum, with a long-term perspective focused on fostering mutually beneficial multi-chain growth. The respective communities can look forward to exciting opportunities, such as the recent launch of $5,000 of WOO incentives for the WOO/ETH LP on Trader Joe, rewarding quest experiences, and community calls where teams come together to share updates and news.

Featured image from iStock, chart from TradingView.com 


Trader Joe, a Decentralized Exchange (DEX) on the Binance Smart Chain, is making waves in the Decentralized Finance (DeFi) world with its new Auto-Pools feature. According to the DeFi researcher Tindorr, this innovative solution offers a set-and-forget yield farming strategy for liquidity provide...

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