The recent $200 million hack of Singapore-based major cryptocurrency exchange KuCoin has been making headlines, but the difference between this attack and others in the past has been the hacker’s blatant utilization of everyone’s favourite new crypto frontier – DeFi (decentralized finance).

The KuCoin hacker must have had a lightbulb moment after the crypto media outlet Cointelegraph published the piece Regulatory risks grow for DeFi as a ‘money laundering haven’ not two weeks ago. Bing!

Generally it seems that the true innovation occurring in financial service is happening in DeFi. Imagine redesigning all financial products from scratch? The possibilities are endless. With $1 Billion locked into DeFi at the beginning of 2020, the figure has been increasing rapidly, currently standing at close to $10 Billion – a 10x increase. This is a very young sector with most of the operators not exceeding even 9 months.

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SushiSwap investors were handed a raw deal over the weekend after the pseudonymous founder of the $1.27 billion, 1.5-week-old decentralized finance (DeFi) protocol cashed out.

A fork of DeFi darling Uniswap, SushiSwap is the brainchild of a pseudonymous founder, Chef Nomi, who took the former project an extra yard by adding rewards for providing liquidity to the exchange through a liquidity provider token (LP), called sushi (SUSHI), that earns a portion of the AMM’s revenue.

In essence, AMM’s provide the infrastructure to match lightly traded tokens with liquidity. A variant of other decentralized exchange (DEX) experiments, Uniswap has grown to be the largest AMM with volumes nearing those of centralized exchanges such as Coinbase Pro.

Related: Binance Unveils New Product for ‘Yield Farming’ Crypto Assets

The episode underscores the complexity, creativity and unpredictability of the white-hot DeFi space, where more than $8 billion worth of cryptocurrency is currently locked up

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