😬 Unsecured DeFi Lenders Look Shaky in Face of FTX Contagion
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FTX Crisis: Solana
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DeFi Lending
😬 Unsecured DeFi Lenders Look Shaky in Face of FTX Contagion
Alameda Owes DeFi Lenders $13M as TVL Drops for Major Players
By Owen Fernau
EXPOSED The fallout from FTX’s collapse is just starting and within decentralized finance, platforms enabling unsecured loans are the most exposed relative to collateralized counterparts with millions in loans on the line, while total value locked slides.
👉READ THE FULL STORY IN THE DEFIANT.IO👈
Market Action
📈 Markets Rally After Binance Proposes ‘Industry Recovery Fund’
DeFi Derivatives Surge as Traders Flee Exchanges
RALLY Crypto markets rallied early Monday after Binance CEO Changpeng Zhao (CZ) proposed to create an “industry recovery fund” that would invest in companies struggling to stay afloat in the wake of FTX’s collapse. Major cryptocurrencies spiked after Zhao’s announcement just after 1:30 a.m. New York time, despite few details about the proposed fund.
👉READ THE FULL STORY IN THE DEFIANT.IO👈
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FTX Crisis: Solana
📉 Solana Discloses Losses From FTX Collapse
Serum DEX Heavily Impacted
BANKRUPT The Solana Foundation and Solana Labs have disclosed their asset exposure and transaction histories linked to bankrupt crypto exchange FTX and its sister trading firm Alameda Research.
👉READ THE FULL STORY IN THE DEFIANT.IO👈
Crypto Exchanges
😳 Disclosing Reserves May Backfire for Centralized Exchanges
Crypto.com’s Vow to Audit Reserves Spurs Scrutiny From Blockchain Sleuths
By Samuel Haig
SHIFT In response to FTX’s bankruptcy, a number of centralized crypto exchanges, including Binance, are racing to publish data on their reserves and ease the worries of investors. Yet the shift has already produced a cautionary tale that shows publishing reserve data may reveal problematic practices.
👉READ THE FULL STORY IN THE DEFIANT.IO👈
FTX: Investigations
🏛 FTX Confirms Justice, SEC Probes in Bankruptcy Filing
FTX Appoints Independent Directors to Ensure ‘Proper Governance’
PROBES In the first significant filing of its bankruptcy, FTX confirmed that the U.S. Department of Justice and other federal and state agencies are probing the exchange in connection with its failure last week.
👉READ THE FULL STORY IN THE DEFIANT.IO👈
FTX Crisis: FTT Tokens
👀 FTX Deployer Transfers $400M of FTT Tokens
Regulator Denies Instructing Exchange to Process Bahamian Withdrawals
TRANSFER Bankrupt crypto exchange FTX transferred nearly $400M worth of newly created FTT tokens to a yet-to-be-identified wallet Saturday night, sending the price of the token crashing to new lows.
👉READ THE FULL STORY IN THE DEFIANT.IO👈
FTX Crisis: Solana
💥 FTX-Backed Bitcoin and Ether Tokens Depeg On Solana
soBTC Is Trading at a 50% Discount
PEG Wrapped versions of Bitcoin and Ether on the Solana blockchain have lost their peg to the underlying assets in the wake of FTX’s bankruptcy filing. Bitcoin on Solana, or soBTC, was trading at $8,000, less than half the price of native Bitcoin. At one point, it fell as low as $4,000 per token.
👉READ THE FULL STORY IN THE DEFIANT.IO👈
Exploits
🦹🏻♂️ FTX Hacked for at Least $650M in Mega-Heist Friday Night
Hackers drained hundreds of millions of dollars from insolvent crypto exchange FTX Friday night
HEISTS Hackers drained hundreds of millions of dollars from insolvent crypto exchange FTX Friday night, just hours after it declared bankruptcy, in one of the largest heists in crypto history.
WALLETS There are five known wallet addresses involved in the exploit. One hacker made off with about $450M in cryptocurrencies, according to crypto sleuth ZachXBT, while about $200M went to another pair of wallets. The total amount drained from the failed exchange is at least $650M, according to estimates from ZachXBT.
👉READ THE FULL STORY IN THE DEFIANT.IO👈
Opinion
👨🏻🍳 A Recipe for Making DeFi Lending Sustainable and Stable
Market Manipulators Must be Stopped — Here’s How
STABILITY The world of decentralized lending has been rightly referred to as the “Wild West” more than once. By removing human oversight, new protocols have been able to offer impressive yields on many of their services, but at the huge cost of lowered stability.
MANIPULATORS Many are waking up to the fact that this is unsustainable and unnecessary, as market manipulators are crushing retail investors on a regular basis. New mechanisms for tapping into legacy credit may restore balance while decentralized and cryptographic proofs can ensure that honest actors run the show.
👉READ THE FULL STORY IN THE DEFIANT.IO👈
Shoutout
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After the announcement of the upcoming swap to Ethereum last week, the MIDAS token has hit a new ATH of $43.65. Currently, there are more than $70 million staked in MIDAS tokens on the platform by more than 6,000 users. Stake MIDAS with 22.2% APY.
Defiant Video
📺 FTX Saga Update: Binance Recovery Fund, Crypto.com Reserves, FTX Hack
📺 Weekly Recap: The Fall of FTX - everything we know so far
Podcast Video
📺🎙 Podcast: Robinhood is coming after MetaMask with Polygon Web3 Wallets
Trending in The Defiant
Crypto Lender BlockFi Suspends Withdrawals BlockFi, a centralized crypto lender which pays users a return on deposits of digital assets, has paused withdrawals on its platform.
SBF Surfaces With Apology and Details on FTX’s Condition Breaking his silence during a two-day period when the crypto market erased $131B in value, Sam Bankman-Fried finally offered up a mea culpa for the damage wrought by the murky practices at his exchange FTX, and the hedge fund he controls, Alameda Research.
Investors Bargain Hunt as Inflation Report Spurs Market Rally Well that’s a relief. The crypto market rallied on Thursday after the U.S. government released data that shows inflation cooled in October to its lowest level since January.
Elsewhere
🔗 Solana Ecosystem Facts Related To FTX Bankruptcy: Solana
During the events of the past week, the Solana network has not experienced any notable performance or uptime issues.
🔗 Let’s Actually Commit to Proofs of Reserve This Time, Okay?: CoinDesk
I’m not going to mince words. The fraud-driven collapse of FTX and Alameda Research is, in my estimation, the worst single event in the crypto industry since its inception.
🧑💻 ✍️ Stories in The Defiant are written by Owen Fernau, Aleksandar Gilbert, Samuel Haig, and yyctrader, and edited by Edward Robinson, yyctrader and Camila Russo. Videos were produced by Alp Gasimov. Podcast was led by Camila, edited by Alp.
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