Tornado Cash saga left a void, says lead scientist Chainalysis: Finance Redefined


Welcome to Finance Redefined, your weekly dose of essential insights into decentralized finance (DeFi) – a newsletter created to bring you key developments from the past week.

The Chainalysis chief scientist shared his views on the Tornado Cash saga, saying the incident has left a void for illegal fund-mixing services, but the real impact of the sanctions can be determined in the long term.

Ethereum’s expanding ecosystem after Merge could have a significant impact on the crypto economy, according to a new report. Institutional lending platform Mapple Finance launched a $300 million loan pool for Bitcoin mining companies.

The Tribe DAO, a decentralized autonomous organization, voted to reimburse affected users of the $80 million exploit on DeFi platform Rari Capital’s liquidity pools. BNB Chain launched a new community-led security initiative called Avenger DAO.

Top 100 DeFi tokens by market cap have had a mixed week in terms of price action, with many tokens trading in the red while a few others showed weekly gains.

Tornado Cash left a void, time will tell what fills it – Chainalysis chief scientist

The sanctions against cryptocurrency mixer Tornado Cash have left a vacuum for illegal fund-mixing services, but more time is needed before we know the full impact, according to the chief scientist at Chainalysis.

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During a demo of Chainalysis’s recently launched blockchain analytics platform Storyline, TSWT asked Chainalysis chief scientist Jacob Illum and country manager for Australia and New Zealand Todd Lenfield about the impact of the Tornado Cash ban.

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Tribe DAO Votes To Reimburse Victims Of $80 Million Rari Hack

After months of uncertainty, the Tribe DAO passed a vote to reimburse affected users for the $80 million exploit on the liquidity pools of DeFi platform Rari Capital.

After several ballots and board proposals, Tribe DAO, which consists of Midas Capital, Rari Capital, Fei Protocol and Volt Protocol, decided to vote on Sunday with the intention of fully compensating victims of hacks.

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Stake Providers May Expand Institutional Presence in the Crypto Space: Report

The carbon footprint of the Ethereum blockchain is expected to decrease by 99% after last week’s Merge event. Positioning staking as a service for retail and institutional investors, the upgrade could also have a significant impact on the crypto economy, according to a report from Bitwise on Tuesday.

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The company said it expects potential gains of 4%-8% for long-term investors via Ether (ETH) staking, while analysts at JP Morgan predict that betting revenues across PoS blockchains could double to $40 billion by 2025.

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Maple Finance Launches $300 Million Lending Pool for Bitcoin Mining Companies

On September 20, institutional crypto lending protocol Maple Finance and its delegate Icebreaker Finance announced that they would provide up to $300 million in secured debt financing to public and private Bitcoin mining companies. Qualified entities that meet treasury management and energy strategy standards across North America, as well as those in Australia, can apply for funding.

On the other hand, the company aims to provide risk-adjusted returns in the low teen rates (up to 13% per annum) to investors and capital spreaders. The pool is only open to accredited investors who meet substantial income and/or asset qualifications within a jurisdiction.

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BNB Chain Launches New Community-Managed Security Mechanism To Protect Users

BNB Chain, Binance’s native blockchain, has launched AvengerDAO, a new community-driven security initiative to protect users from scams, malicious actors and potential exploits.

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The security-focused DAO was developed in collaboration with leading security firms and popular crypto projects such as Certik, TrustWallet, PancakeSwap, and Opera, to name a few.

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DeFi market overview

Analytical data shows that DeFi’s overall value on lockdown has recorded a small dip over the past week. The TVL value was approximately $50.64 billion at the time of writing. Data from TSWT Markets Pro and TradingView shows that DeFi’s top 100 tokens by market cap had a mixed week, with many tokens recovering towards the end of the week, while a few others traded in the red on the weekly charts.

Compound (COMP) was the biggest winner, with a gain of 15% over the past seven days, followed by PancakeSwap (CAKE) with a gain of 8.8%. Theta Network (THETA) was another token in the top 100 with a weekly gain of 5%.

Thanks for reading our roundup of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education in this dynamically evolving space.