Welcome to the latest edition of Cointelegraph's decentralized finance newsletter.
As the calendar year draws to a close, Cardano's personable leader Charles Hoskinson shares a message of optimism, unity and collaboration for the future of cryptocurrencies.
As a gesture of goodwill for the holiday season, our long-form DeFi newsletter will be posted here this week as an article alongside regular email. Subscribe below for full access to next week's issue!
The Polygon layer two protocol announced this week the rectification of a potentially multi-million dollar vulnerability on its Proof-of-Stake Genesis contract through the implementation of an Emergency Draft Update on the mainnet. The incident and the subsequent update took place in early December. If a malicious entity was compromised to the greatest extent possible, the vulnerability could have resulted in nearly $ 24 billion in financial losses, equivalent to 92.7% of the network's native MATIC tokens and effectively causing an imminent demise. . Everything you need to know about the recent update to the Polygon network. - Polygon | $ MATIC (@ 0xPolygon) December 29, 2021 According to a recent Polygon blog post, two goodwill white hat hackers, Leon Spacewalker and Whitehat2, discovered the incident on December 3 and 4, respectively, alerting blockchain security platform Immunefi. Following procedural investigation and authentication by Immunefi, the information was passed on to Polygon, which updated the network on December 5, although a hacker was able to drain 801,601 MATIC ($ 2.04 million) before the bug was resolved. Polygon co-founder Jaynti Kanani emphasized the network's ability to quickly resolve the critical bug, noting in a blog mail that: โImportantly, it was a test of the resilience of our network, as well as our ability to act decisively under pressure. Considering how much was at stake, I think our team made the best possible decisions under the circumstances. " Leon Spacewalker will receive a reward of $ 2.2 million in stablecoins for his efforts, while the second anonymous hacker, Whitehat2, will pocket $ 1.27 million in MATIC tokens directly from Polygon. Related: Here's how Polygon defies Ethereum's limitations, as told by co-founder Sandeep Nailwal This week, in an end-of-year YouTube livestream titled "DApps and Cardano DeFi Alliance," Charles Hoskinson, founder of Cardano spoke candidly about the emerging landscape of DeFi projects and creators at Cardano, as well as advising participants on the volatile nature of exponential markets. โIt is very difficult to do this type of engineering and do it well, with vision and vision for the future. Unfortunately, many of the projects in this space will not stand the test of time. It is just a fact that we will see a great extinction in the next five to 10 years. " Broadcasting with evident enthusiasm from "warm and sunny Colorado," a place he humorously describes as "always warm, always sunny, sometimes Colorado," Hoskinson predicted a great year ahead for the crypto space and his beloved Cardano. โThe only thing holding us back is us,โ he said before exclaiming that empathic and friendly collaboration is a critical component to productive dialogue and progress toward our shared pursuit of a more prosperous financial future. Following the successful launch of Cardano's smart contracts in September via the Alonzo hard fork, the project has come under scrutiny for tedious developments on its roadmap. Despite this, Hoskinson believes that the user count will exceed 10 times the current 2 million in 2022 due to high demand within the non-fungible token space. Alongside this, Hoskinson introduced the Cardano DeFi Alliance, an initiative that seeks to build an open source library of resources, tools, services, and best practices to nurture the growth of the entire DeFi ecosystem. Related: Cardano's ADA price points to a 30% rally with a possible 'triple bottom' setup Huobi Research, the research arm of crypto exchange Huobi, has identified GameFi, which refers to the combination of gaming and decentralized finance, as an emerging trend based on its quantitative analysis of on-chain data. In a lengthy blog post, Huobi detailed the GameFi projects' strong increases in user activity and transaction volume since June, stating that "DApp rankings show that five of the top nine apps are GameFi apps." . Also, in early December [2021], GameFi weekly active users have reached 9.21 million, a record high. " Thanks @Cointelegraph to cover the report. - Huobi Research (@Huobi_Research) December 30, 2021 The researchers noted that these games differ from traditional games, such as World of Warcraft, in three distinctive categories: free exchange of game materials, free exchange and pricing of in-game currencies, and protection of property rights. Huobi Research argues that GameFi's ability to "significantly lower transaction fees for gold cultivation," a term used to denote in-game token conversion to real-world currency, is the main reason for its greater financial appeal. : "At GameFi, owners have the right to decide whether to sell certain resources or not, which increases the degree of user independence and stimulates competition in the market, which saves transaction costs." In addition, developers in the GameFi space have the advantage of implementing private property rights through non-fungible tokens at a lower cost: โThis is not only a comparative advantage that traditional game developers never had, but also reflects the intrinsic value of blockchain technology in games. industry, "said the firm. Related: Korean government tells Apple and Google stores to remove P2E games Analytical data reveals that DeFi's total locked value has decreased 1.8% over the week to $ 140 billion, seemingly slowing down for the holiday season. Data of Cointelegraph Markets Pro and TradingView reveals that the top 100 DeFi tokens by market capitalization have been mostly bullish the last seven days. SushiSwap (SUSHI) took the lead this week with gains of 42%. Oasis Network (ROSE) flourished 37.5%, while Fantom (FTM) grew 26.1%. Gnosis (GNO) and PancakeSwap (CAKE) ranked fourth and fifth this week with 25.4% and 3%, respectively. Interviews, reports and other interesting things Thanks for reading our roundup of this week's most impactful DeFi developments. Join us again next Friday for more stories, ideas, and education in this dynamically moving space. Happy New Year!
Polygon Fixes Possible Billion Dollar Protocol Vulnerability
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A security partner discovered a vulnerability
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Fix was introduced immediately
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Validators updated the network
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No material damage to protocol / end users
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The white hats received a reward https://t.co/oyDkvohg33Cardano founder Charles Hoskinson predicts DeFi a "further extinction"
Huobi Research Predicts Increase in Play-to-Win Games in 2022
Read it โก๏ธhttps://t.co/MnG14w5KNW https://t.co/mzFggnLp0zToken performances
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