Welcome to Finance Redefined, your weekly dose of Fundamental Decentralized Finance (DeFi) insights – a newsletter prepared to bring you important developments over the past week.
The first week of November saw the institutionalization of the DeFi markets as major international banks and financial institutions executed and completed their first DeFi transactions.
Global financial giant JPMorgan has completed its first cross-border transaction using DeFi on a public blockchain with the help of Project Guardian of the Monetary Authority of Singapore (MAS). DBS Bank has begun testing foreign exchange (FX) and government securities trading using DeFi-licensed liquidity pools.
Aside from JPMorgan and DBS Bank, the BIS also said that DeFi’s automated market-making technology could serve as “the basis for a new generation of financial infrastructure.”
In other news, the Team Finance hacker has returned $7 million of the $14.5 million stolen and intends to keep 10% of the stolen amount as a reward. In addition, MakerDAO co-founder Nikolai Moshegian was found dead at the age of 29 in Puerto Rico, leading to numerous conspiracy theories.
Looking at the weekly performance of the DeFi market, the majority of DeFi coins in the top 100 started in the first week of November on a bullish note. The Fed rate hike helped the majority of coins post double-digit weekly gains.
JPMorgan implements first DeFi trading on public blockchain
Multinational banking company JPMorgan has successfully executed the first ever cross-border transaction using DeFi on a public blockchain. The trade was facilitated by MAS’s Project Guardian on 2 November.
The pilot was another step in examining how traditional financial institutions can use token assets and DeFi protocols to conduct financial transactions, among other use cases.
The Bank for International Settlements will test the DeFi application in the CBDC FX markets
According to an announcement on November 2, the Bank for International Settlements, or BIS – along with the central banks of France, Singapore and Switzerland – will embark on a new initiative dubbed “Project Mariana” in their exploration of blockchain technology. Project Mariana intends to use DeFi protocols to automate foreign exchange markets and settlements.
This includes the use of DeFi protocols to incentivize the virtual exchange of cross-border transactions between Swiss Francs and Euros and wholesale central bank digital currencies for Singapore dollars, or CBDCs.
The Bank of Singapore uses DBS DeFi to trade forex and government securities
DBS Bank, a major financial services group in Asia, is implementing DeFi on a project backed by the Central Bank of Singapore. DBS has begun testing forex and government securities trading using licensed or private DeFi liquidity pools, the company announced on November 2.
This development is part of Project Guardian, a collaborative cross-industry effort pioneered by MAS. The trade was conducted on a public blockchain, and involved the buying and selling of tokenized Singaporean government securities, Singapore dollars, Japanese government bonds, and the Japanese yen.
Nikolai Mushigian, co-founder of MakerDAO, has died at the age of 29 in Puerto Rico
Nikolai Mushigian, co-founder of crypto lending platform MakerDAO and decentralized stablecoin Dai, was found dead in Puerto Rico last week.
Local newspaper El Nuevo Día reported that Mochejian died of drowning after being dragged by sea currents on Condado Beach in San Juan. Moshijian had no vital signs by the time his body was saved. Condado Beach is one of the most dangerous places in the world for swimmers, with it said to have claimed at least eight lives in 2021.
Team Finance hacker returns $7 million to related projects after exploit
Four projects received $7 million worth of tokens from the hacker behind Team Finance’s $14.5 million exploit on October 27. Over the weekend, the attacker confirmed in a series of messages that he would keep 10% of the stolen funds as a reward and return other tokens to the affected projects.
The scalper – who describes himself as a “white hat” – drained assets from Team Finance with a Uniswap v2-to-v3 migration
DeFi Market Overview
Analytical data reveals that the total value of DeFi posted another weekly increase, rising to $52 billion. Data from Cointelegraph Markets Pro and TradingView shows that the top 100 DeFi tokens by market capitalization had a bullish week, with the majority of tokens trading in green on the seven-day chart.
An increase of 19.05%. The chart (GRT) is up more than 17%, while the Basic Attention Token (BAT) is up 15.66% weekly.
Thank you for reading our summary of the latest impactful DeFi developments this week. join u