Ethereum staking services have reached an agreement on a 22% limit for all validators to ensure fair markets. This move is seen as crucial for maintaining the decentralization of the Ethereum network. Several providers, including Rocket Pool, StakeWise, Stader Labs, and Diva Staking, have either already committed or are working to commit to this self-limit rule. By imposing this restriction, these providers aim to prevent any single entity from owning more than 22% of the Ethereum staking market.
In August, the decentralized finance (DeFi) sector suffered losses of $16 million due to hacks and exploits. A report by blockchain security firm Immunfi revealed that a total of $23.4 million was lost to various security incidents, including hacks, exploits, and fraud. Compared to July’s losses of $320.5 million, August saw a substantial decrease in DeFi-related losses. It is noteworthy that all these incidents targeted DeFi protocols, and centralized finance entities remained unaffected. The Ethereum blockchain and BNB Chain were the most affected, with five incidents occurring on Ethereum and four on BNB Chain. Additionally, soon after its launch on August 9, Coinbase’s Base network experienced four security exploits.
Balancer, an Ethereum automated market maker and DeFi protocol, fell victim to an exploit that resulted in a loss of nearly $900,000. The company confirmed the exploit, which occurred just days after disclosing a vulnerability affecting multiple pools. According to blockchain security expert Meier Dolev, the attacker’s Ethereum address received two transfers of Dai stablecoin, totaling over $893,978. This incident highlights the importance of promptly addressing vulnerabilities to prevent such exploits.
In other news, the popular stablecoin USDC, issued by Circle, will soon launch natively on Coinbase’s Base network. Currently, users rely on USD Base Coin (USDbC) as a substitute for USDC on the network. With the launch of the native version, users will have a more direct and seamless experience with USDC on the Base network. This development comes after the successful launch of Coinbase’s Base network on August 9, which initially lacked native support for USDC.
Shibarium, a layer-2 network for the SHIB token, has achieved significant growth since its relaunch. Within 24 hours of the relaunch, Shibarium attracted 35,000 new wallets, bringing the total number of wallets to over 100,000. Shytoshi Kusama, the lead developer of Shiba Inu, confirmed the successful relaunch in a blog post. The network now boasts 65,000 wallets and 350,000 transactions, representing a notable increase from its previous figures.
In the DeFi market, the past week witnessed a bearish trend, with most tokens trading in the red on weekly charts. The total value locked in DeFi protocols stood at around $49.25 billion. Despite the market decline, the DeFi sector continues to evolve rapidly, with new developments and innovations emerging regularly.
These were the major developments in the DeFi space this week. Stay tuned for more news, insights, and educational content on this fast-growing industry.
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