Welcome to Finance Redefined, your weekly source of essential information about decentralized finance (DeFi) – a newsletter designed to keep you up to date with the most important events of the past week.
The past week in DeFi was marked by AI-related developments on Etherscan, Polygon’s most recent security patch, and the ongoing legal action pursued by on-chain sleuth ZachXBT, which has been backed by numerous crypto personalities.
Etherscan unveiled an AI-based code reader that can extract and analyze the source code of certain contracts, while the co-founder of Polygon suggested a zero-knowledge Ethereum Virtual Machine (zkEVM) update to bolster the security of the protocol.
Binance CEO Changpeng Zhao showed his support for ZachXBT by contributing to his lawsuit fund, which has now accumulated more than $1 million. This community-supported initiative is to help the blockchain analyst battle a defamation suit initiated by Jeffrey Huang, otherwise known as MachiBigBrother on Twitter.
The past week saw a significant Bitcoin (BTC) price surge that helped the top 100 DeFi tokens break out of a three-week-long bearish trend, with the majority of DeFi tokens trading in the green, apart from a few exceptions.
Etherscan launches AI-powered Code Reader
On the 19th of June, Etherscan, a blockchain explorer and analytics platform, introduced a new feature called “Code Reader” which uses AI to access and analyze the source code of a given contract address. After a user inputs a query, Code Reader produces an answer by using OpenAI’s large language model, giving insight into the source code of the contract.
Code Reader’s use cases include gaining a deeper understanding of the code within contracts via AI-generated explanations, obtaining a comprehensive list of functions related to Ethereum data from smart contracts, and comprehending how the underlying contract interacts with decentralized applications. “After retrieving the contract files, you can select a particular source code file to read through. Furthermore, you can make alterations to the source code within the UI before submitting it to the AI.”
CZ, Powell and more rally to fund legal fees for on-chain sleuth ZachXBT, surpassing $1 million
Blockchain investigator ZachXBT has been given more than $1 million in contributions from the crypto community in a span of less than a day to cover the expenses of his legal action in a defamation case.
ZachXBT, renowned for his research into blockchain and crypto, has found himself in a legal battle with Jeffrey Huang, popularly known as MachiBigBrother on Twitter. Huang declared on June 16 that he had submitted a defamation suit against ZachXBT, alleging that he had harmed his standing through false claims.
Polygon co-founder proposes zkEVM ‘validium’ upgrade to improve security
Mihailo Bjelic, a co-founder of Polygon, has suggested that the Polygon PoS network should be upgraded to a “zkEVM validium” version, as stated in a post on a forum from June 20th. If the upgrade is carried out, the new version will utilise zero-knowledge proofs in order to enhance security.
Polygon, an Ethereum scaling solution, has over $900 million worth of assets locked in its contracts and more than two million transactions every day. It was unveiled in 2019. In March, the Polygon developers discovered a second network, the Polygon zkEVM, which uses zero-knowledge rollups to scale Ethereum.
Stablecoin protocol Reserve invests $20 million in Convex, Curve and Stake DAO
Reserve, a stablecoin protocol, is committing $20 million to the governance tokens of yield farming apps Curve, Convex and Stake DAO, as reported on June 20. The purpose of this investment is to increase the liquidity of Reserve’s RTokens and their voting power within the governance systems of these apps.
The Reserve protocol enables users to create their own stablecoins backed by any asset they choose. Examples of such stablecoins created via Reserve are eUSD, hyUSD, RSV, RSD, and ETH+.
An overview of the DeFi market.
The total market value of DeFi saw a bullish surge after three weeks, as indicated by data from Cointelegraph Markets Pro and TradingView. Most tokens within the top 100 by market capitalization experienced a bullish week, trading in the green. Despite the spike of over $5 billion this week, the total value locked in DeFi protocols remained beneath the $50 billion threshold.
We appreciate you taking the time to read our summary of this week’s most significant DeFi developments. Come back next Friday for more news, analysis, and information about this quickly evolving space.
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