Bitcoin’s tokenization and yield farming are driving DeFi’s growth

DeFi’s Ethereum report for the second quarter emphasizes the importance of The total number of tokenized BTCs exceeds the total of BTCs in Lightning Network’s own second-tier solution.

Wrapped Bitcoin (WBTC) It represents more than two thirds of the amount of BTC tokenized in Ethereum, however The report notes that there has been an increase in bitcoin tokenization protocols recently. Around 3,000 of the more than 11,000 BTC on Ethereum were transmitted via renBTC, sBTC, imBTC and hBTC.

“Cross-chain interoperability is anti-maximalist, but it’s more likely to be the future of blockchain,” the report said.

Yield Farming is driving the introduction of DeFi

Bitcoin’s tokenization and yield farming are driving DeFi’s growth
Bitcoin’s tokenization and yield farming are driving DeFi’s growth

The report also highlights the growing popularity of “Yield farming“, this means, the generation of passive income through systematic lending of crypto assets through various DeFi protocols.

The launch of the compound governance token in June was an important factor that increased interest in yield farmingDaily active DeFi users and the buildup of ether blocked in DeFI logs are increasing at the end of the month.

The data from ConsenSys indicate that lThe popularity of this process has not managed to attract a large number of new users from outside the DeFi sector.with almost 2,000 “super users” who make up a large part of the activity in space.

Previous major attacks on DeFi in 2020

The report highlighted the key security episodes for DeFi platforms Uniswap, Lendf.me, and Bancor.

April 18th Uniswap was stolen $ 340,000 via a reentry attack vector that compromised the ERC-777 token from Tokenlon which supports its in the BTC protocol.

The next day Lenf.me was stolen $ 25 million after a similar attack, however The money was returned after the hacker accidentally leaked your IP address, which led to later negotiations between the platform and the perpetrator.

June 28th Balancer suffered a loss of approximately $ 450,000 if a hacker took advantage of an incompatibility between the “deflationary tokens” of ERC-20 STA and STONK and the underlying smart contract from Balancer.

On the whole, All three attacks resulted in the theft of more than $ 26 millionHowever, most of the funds were returned after the stolen funds were recovered from Lendf.me.

“Security incidents are inevitable in new technologies.”ConsenSys concluded by stating that “the DeFi community continues to develop strategies to protect itself from this”.

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