This Week in DeFi: October 7
Decentralized Finance or DeFi, as it is popularly stylized, is an innovative force to be reckoned with in the finance space. Based on the blockchain network, the defining attribute of DeFi is its lack of reliance on any central authority or intermediary for finance decisions. DeFi is an umbrella term for all those financial services and applications on the public blockchain, usually Ethereum. It is a fast-growing industry, with new updates every week. This week’s edition of This Week in DeFi will walk through some of these additions and what makes them so exciting.
September 25- China Bans All Crypto Activity
The People’s Bank of China has announced that all cryptocurrency-related transactions are illegal and must be banned. The country has been skeptical towards the crypto industry for years, but this is their most firm statement yet. The bank issued a statement on its website further saying that all cryptocurrencies, including bitcoin (BTC) and tether (USDT), are not fiat currency, and cannot be used on the market. Even transactions for services provided by offshore exchanges to residents of China are not allowed and are considered illegal. This announcement has caused the drop of many crypto stocks, including Bitcoin and Ether.
September 26- Cardano Launches New Stablecoin on Coti Network
Proof of stake blockchain platform Cardano is one of the more environmentally sustainable-focused platforms in the DeFi space, as it aims to rely less on cryptocurrency miners, a task that consumes a lot of energy. The platform recently hosted the worldwide hybrid crypto event Cardano Summit 2021, known as “The Biggest Blockchain Event Ever”. At this summit, Cardano founder Charles Hoskinson announced the platform’s plans to launch a new stablecoin known as Djed. The first network to list and official issuer of Djed will be COTI, a blockchain protocol for decentralized payment processing.
September 27 — Coinbase To Allow Users To Deposit Paychecks into Their Accounts
Online decentralized exchange platform Coinbase has recently announced that it is allowing its users based in the United States to deposit any part of their traditional paycheck into their Coinbase accounts. This money can be held in dollars on the platform or be converted into cryptocurrencies like bitcoin. The advantage for users here is that they won’t have to worry about extra fees. By introducing direct deposit, users can access crypto financial services much more easily than before.
September 30- TikTok Launches its First NFT Collection
Dubbed TikTok Top Moments, the powerhouse social media platform Tik Tok has announced plans to launch its first nonfungible token (NFT). This collection is to include six NFTs which are designed by popular personalities on the site, each associated with a trending video that they created. Some celebrities that are on board this project include Lil Nas X and Grimes
October 1- Alpha Finance Labs Launch AlphaX
Alpha Finance Labs is a decentralized finance laboratory that aims to build an ecosystem of DeFi products. The company focuses on research and innovation in the DeFi space, and has just recently introduced its new program known as Lightning in a bottle”. The program is targeted towards AlphaWolves community members, allowing them to participate in the AlphaX testnet and earn incentives along the way. The program will run for two weeks until October 15.
October 3- Bug Causes Accidental Distribution of Millions of Comp
The DeFi platform Compound has been the latest to find itself in the aftermath of a smart contract glitch. At first, an awry upgrade resulted in the platform accidentally distributing $104 million worth of cryptocurrency to its users, by awarding many more tokens than assigned. Within a few days, this bug caused even more damage when an anonymous user took advantage of this opportunity and sent a further $80 million of Comp coins to a distribution pool named Comptroller. Other users of the platform started to take advantage of this glitch as well by withdrawing crypto from the Comptroller pool, resulting in $25 million worth of tokens being taken. In response to this mishap, Compound founder Robert Lescher tweeted asking for the tokens back or else he will contact tax authorities. To date, this stands as the largest fund loss in a smart contract incident.
October 6- Brazil to Launch Bitcoin as a Currency Soon
Introduced by Federal Deputy Auro Ribeiro to the Brazilian House of Representatives, Bitcoin bill 2.303/15 is set on a trajectory to become legalized. This bill would be a game-changer for the future of crypto in Brazil, as it would make Brazil the second country to legalize Bitcoin after El Salvador. Riberio has given the media a positive response about the bill’s passing, saying it is likely that Bitcoin will officially become a currency in Brazil in the near future.
This would allow citizens of the country to make all kinds of purchases using Bitcoin, from buying cars to eatables. The bill also outlines many strict measures to curb crypto crime, increasing fines and jail time. This is exciting news for the residents of Brazil, the majority of whom support these developments.
October 7- Cryptocurrency Named After Elon Musk’s Dog Surges 2,400 Percent
Entrepreneur Elon Musk’s fanbase extends to crypto enthusiasts, with fans creating a cryptocurrency in the Tesla CEO’’s dog’s name. Flokinomics, named after Elon Musk’s Shiba Inu dog Floki, is a dogecoin knockoff that began trading just last week. In just 24 hours, the value of the coin increased by 2400 percent, an incredible jump for something created in jest. One tweet from Elon Musk could potentially raise the value even higher, so fans are waiting eagerly for him to acknowledge this publicly.