Welcome to the latest edition of Cointelegraph’s Decentralized Financial Newsletter.
A week of positive progress in the DeFi space, including nine-digit fundraising, successful product launches and rising token prices, was tarnished somewhat by news of two serious security exploits. Read on to see the full range of developments over the week.
What you’re about to read is the smaller version of this newsletter, designed for brevity. For the full version of DeFiâs developments over the past week, please send your email below.
Borderless Capital is launching a $ 500 million fund to support the Algorand ecosystem
Private equity firm Borderless Capital announced this week the launch of ALGO Fund II, a $ 500 million initiative put together to help create digital asset projects on the Algorand blockchain.
Announced via a blog post by the Algorand Foundation, the capital will focus specifically on decentralized applications, niche liquidity mining services, lending, borrowing and yield farming, and non-fungible tokens.
We’re excited to announce the launch of our $ 500M Borderless ALGO Fund II! Https: //t.co/EP0U6Ib8HV pic.twitter.com/okXf6GBFo8
– Limitless capital (@borderless_cap) November 30, 2021
Algorand is an open source, decentralized blockchain most viewed for its efficiency, security, and status as a potential competitor to Ethereum’s dominance.
Borderless Capital was founded in November 2018 and has already invested in over 100 blockchain-related projects through its $ 400 million ALGO Fund I, including Tinyman, Yieldly, Opulous and Flare Network, as well as successful accelerator programs in three large ones industrial continents.
Iota is preparing the introduction of a decentralized smart contract platform
The distributed ledger platform Iota announced the start of the decentralized Layer-One Smart Contract Network Assembly and the accompanying ASMB token this week.
Assembly will seek to drive the adoption of smart contract services and promote an environment for creators, developers, and community advocates that will facilitate the expansion of the Iota ecosystem to include Web 3.0 sectors including the metaverse.
Assembly is expected to start in 2022 and work in parallel with Iota and use the existing infrastructure of the network, in particular the directed acyclic graph structure, to act as an interoperable, self-sovereign bridge that takes advantage of scalability and security, among other things.
Decentralized application developers will be able to create their own smart contract chains and set individual parameters for low-cost execution fees.
In a recent Twitter post, Iota said revealed that stakers can earn rewards in both Shimmer (SMR) and ASMB tokens when the networks start. “
Stakers receive not just 1 token, but 2! And after the @schimmernet and @assembly_net Network startup, you can get even more rewards if you secure both networks by unplugging $ SMR and $ ASMB.
Visit: https://t.co/gx9ucphSR2#JOTA pic.twitter.com/VjV77gPK5Q
– IOTA (@iota) December 2, 2021
DeFi projects MonoX and BadgerDAO exploited for 150 million US dollars
This week, the decentralized MonoX and BadgerDAO projects fell victim to individual sophisticated protocol hacks that resulted in asset losses of over $ 150 million.
The MonoX platform suffered a single cyberattack on Tuesday when a bug in the smart contract’s swap contract allowed manual price manipulation of MONO tokens, an asset that had only been listed on the Huobi exchange in the days before.
After the hackers raised the MONO token to what the team called “sky high”, the hackers exchanged the funds for other assets on the platform and secured lucrative profits.
In the days following the breach, the MonoX team confirmed the losses totaled approximately $ 31 million and released a remorseful statement that essentially read:
âDays like yesterday are terrible, there is no icing on the harsh reality that a contract is being exploited and people are losing money. Our supporters trust a new project like us, and yesterday we let them down. “
Similarly, but unrelated to the other, BadgerDAO was also the victim of financial exploitation this week. Although concerns were raised by community members on Discord in the days before about suspicious increases in the allowance, administrators did not see it as a threat, as highlighted in this tweet from 0xMoves.
BadgerDAO lost $ 120 million at the time of writing, including 2078.76 bitcoin (BTC), 30.27 interest-bearing bitcoin and 151.32 ethers (ETH), according to blockchain analytics service PeckShield.
The Badger team has now responded by launching a full investigation into the events and pausing smart contract activity until the security of the log is stabilized again.
Related: The biggest DeFi hacking incidents of 2021
Analytical data shows that DeFi’s total locked down value rose 8.01% to $ 159.5 billion over the course of the week.
Data from Cointelegraph Markets Pro and TradingView show that DeFi’s top 100 tokens performed relatively well by market cap the last seven days.
Terra (LUNA) climbed to record highs this week thanks to gains of 66.85%. Uniswap (UNI) achieved a healthy 14.3%, while Tezos (XTZ) was up 12.70%. Chainlink (LINK) and Oasis Network (ROSE) took fourth and fifth place this week with 8.1% and 8% profits, respectively.
Analysis and hot topics of the last week:
Thank you for reading our roundup of this week’s most influential DeFi developments. Come back next Friday for more stories, insights, and education in this dynamically evolving space.