Layer 2 Growth and US SEC Exam, Nov. 19-23 September

Welcome to the new edition of the Decentralized Finance Ecosystem Newsletter from Cointelegraph or DeFi.

In a week when DeFi’s parabolic growth continued, U.S. Securities and Exchange Commission chairman Gary Gensler threatened to tackle stablecoins elsewhere.

What you are about to read is the abridged version of this newsletter. To see the full recap of the events that moved the DeFi sector over the past week (published much faster than Cardano’s smart contracts) subscribe at the bottom of this page.

Layer two defines the future

Layer 2 Growth and US SEC Exam, Nov. 19-23  September
Layer 2 Growth and US SEC Exam, Nov. 19-23 September

In this week, Analytical data has shown that DeFi remains one of the fastest growing sectors of the cryptocurrency economy, as evidenced by the increase in total locked-in value (TVL) in logs. Some of the biggest gains have been made on networks that are compatible with other chains and on Layer 2 protocols that offer a lower commission environment.

Part of the avalanche network, Trader Joe is a protocol that has seen significant inflows since the introduction of an updated cross-chain bridge. east P.It allows Ethereum-based applications and tokens to migrate into its ecosystem, resulting in a 53.96% increase in TVL this week.

The recent advent of Layer 2 technologies such as Arbitrariness, Optimism and a Bridge to the Ecosystem Avalanche is revolutionizing the way investors, creators, and developers interact with various protocols.

Each of them enables fast, low-cost transactions that improve the foundations of the DeFi ecosystem while also making it easier for retail investors to seize opportunities.

United States vs. SEC

US investment firms, Invesco and Galaxy Digital Fund, met this week around Filing a registration statement with the SEC to obtain approval to sell Bitcoin Exchange Traded Funds (ETFs).

If approved by the SEC, The Invesco Galaxy Bitcoin ETF is registered as an offering of securities that can be traded on the traditional national stock exchanges of the United States. Depending on the presentation, the fund uses “Strong physical barriers to entry, electronic surveillance and continuous roaming patrols” to protect Bitcoin’s privacy.

Likewise the American company Amplify ETFs, which in this case were also filed with the SEC to add an offering of DeFi-focused open-ended ETF funds to the Amplify ETF Trust. Approval of the filing of Form N-1A will allow the company to issue an unlimited number of new shares to US investors.

SushiSwap refutes reports of a multi-million dollar bug

One of the developers of the popular decentralized exchange SushiSwap, rejected an alleged security vulnerability reported by a white hat hacker sniffing into their smart contracts.

According to various reports, the hacker claimed to have identified a vulnerability that could put more than $ 1 billion worth of users’ money at risk and said it made the information public after trying to target the developers of Contact SushiSwap.

However, the SushiSwap developer’s pseudonym quickly dismissed the claims, and Mudit Gupta, the “super programmer in the shadow” of the platform, emphasized:

“This is not a weak point. No funds are at risk. If the rewards run out, the withdrawal from the liquidity pools will fail, but anyone (not just sushi) can reload the rewards in an emergency. Sushi can also simply withdraw the reward.”

Token performance

DeFi’s TVL fell sharply this week by 16.08% to $ 105.15 billion, in parallel with the decline in major DeFi tokens.

Data analysis of Cointelegraph Markets and TradingView reveals that The top 20 DeFi tokens by market capitalization have suffered heavy losses over the past seven days, with only three tokens causing a bullish price move.

Avalanche (AVAX) reached the booming earnings podium this week with a respectable one 13.7%. After a climb on the last day, Reindeer exceeded the green line but still a distant second with a 0.64%, while Dai Third with a 0.34%. When a stablecoin hits the top 3, you know it’s been a bad week!

Thank you for reading our roundup of this week’s top news from the DeFi ecosystem. Visit us again next Friday for a round of new stories, developments and insights from the hottest sector in the crypto space..

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