Welcome to Finance Redefined, your comprehensive source for the latest developments in decentralized finance (DeFi). In this weekly newsletter, we aim to provide you with crucial insights into the world of DeFi, highlighting the most significant events from the past week.
Over the past week, the DeFi space has witnessed noteworthy advancements in the realm of artificial intelligence (AI), security updates on the Polygon network, and an ongoing lawsuit supported by prominent figures within the crypto community.
Etherscan, a widely-used blockchain explorer, introduced an innovative AI-powered code reader. This powerful tool enables users to retrieve and interpret the source code of specific smart contracts, enhancing transparency and facilitating a deeper understanding of decentralized applications.
Meanwhile, the co-founder of Polygon, one of the leading scaling solutions for Ethereum, proposed a significant security upgrade known as the zero-knowledge Ethereum Virtual Machine (zkEVM). This upgrade aims to bolster the protocol’s security measures, ensuring a safer and more robust environment for DeFi applications to thrive.
In a remarkable display of solidarity, Changpeng Zhao, the CEO of Binance, voiced his support for on-chain sleuth ZachXBT, who is currently embroiled in a defamation case brought against him by Jeffrey Huang, also known as MachiBigBrother on Twitter. Zhao not only rallied behind ZachXBT but also made a generous donation to his lawsuit fund, which has now surpassed the $1 million mark. This community-funded effort showcases the collective determination to defend the rights of individuals within the crypto community and protect freedom of expression.
Furthermore, the top 100 DeFi tokens experienced a significant breakout from a bearish phase that had persisted for three weeks. This resurgence was largely attributed to a substantial surge in the price of Bitcoin over the past week. Consequently, the majority of DeFi tokens traded in the green, indicating renewed optimism and investor interest in the sector.
As the DeFi landscape continues to evolve, we will strive to keep you informed about the latest trends, innovations, and challenges within this dynamic sector. Stay tuned for more insights and updates in the weeks to come.
Etherscan introduces Code Reader empowered by AI technology.
On June 19, Etherscan, a prominent Ethereum block explorer and analytics platform, introduced an innovative tool called “Code Reader.” This new feature harnesses the power of artificial intelligence (AI) to retrieve and interpret the source code of a particular contract address. By leveraging OpenAI’s large language model, Code Reader generates detailed responses when users input prompts, offering valuable insights into the underlying source code files of the contract.
The capabilities of Code Reader are diverse and encompass various use cases. Users can gain a deeper understanding of a contract’s code by exploring AI-generated explanations. Additionally, the tool provides comprehensive lists of smart contract functions related to Ethereum data, enabling users to explore the contract’s functionalities. Furthermore, Code Reader facilitates comprehension of how the contract interacts with decentralized applications, shedding light on its role and impact within the broader ecosystem.
With Code Reader, users can not only retrieve the contract files but also read through specific source code files within the user interface. Moreover, the tool allows for direct modification of the source code, providing a flexible environment for experimentation and customization. Users have the option to modify the code and share it with the AI, facilitating collaborative exploration and analysis.
The introduction of Code Reader by Etherscan marks a significant advancement in understanding and interacting with smart contracts on the Ethereum blockchain. By leveraging AI technology, users can delve deeper into the intricacies of contracts, enhancing transparency, and fostering a more comprehensive understanding of decentralized applications.
A Polygon co-founder has proposed the zkEVM ‘validium’ upgrade to enhance security.
In a recent forum post on June 20, Mihailo Bjelic, co-founder of Polygon, unveiled a proposal to upgrade the Polygon proof-of-stake network to a new version called “zkEVM validium.” This proposed upgrade aims to leverage zero-knowledge proofs to enhance the security and privacy features of the network.
Polygon, originally launched in 2019, has emerged as a prominent scaling solution for the Ethereum blockchain. With over $900 million in total value locked in its contracts and a staggering two million daily transactions, Polygon has established itself as a key player in the DeFi ecosystem.
The introduction of the Polygon zkEVM network earlier this year marked a significant milestone for the platform. Utilizing zero-knowledge rollups, Polygon zkEVM aims to address Ethereum’s scalability challenges by enabling faster and more cost-effective transactions. The proposed upgrade to the “zkEVM validium” version represents a further step in advancing the network’s capabilities, particularly in terms of security.
By incorporating zero-knowledge proofs, the proposed upgrade seeks to enhance privacy and bolster the overall security of the Polygon network. Zero-knowledge proofs allow for the verification of transactions without revealing sensitive information, thereby enhancing user privacy and reducing the risk of potential attacks.
If implemented, the zkEVM validium upgrade has the potential to further solidify Polygon’s position as a leading Ethereum scaling solution, offering users a more secure and efficient environment for conducting transactions. As the proposal gains attention and undergoes further scrutiny and development, the Polygon community and stakeholders eagerly anticipate the potential benefits that this upgrade could bring to the platform and its users.
Prominent figures, including CZ and Powell, have raised over $1 million to fund legal fees for ZachXBT’s defense.
In a remarkable show of support, the crypto community has rallied behind blockchain investigator ZachXBT, raising over $1 million in donations within a span of just 24 hours. The funds will be utilized to cover his legal expenses in a defamation lawsuit filed against him by Jeffrey Huang, also known as MachiBigBrother on Twitter. The lawsuit stems from allegations made by Huang, accusing ZachXBT of tarnishing his reputation through false claims.
Reserve invests $20 million in Convex, Curve, and Stake DAO.
Reserve, a stablecoin protocol, has announced a $20 million investment in the governance tokens of Curve, Convex, and Stake DAO. The objective is to boost liquidity for Reserve’s stablecoins, known as RTokens, and enhance the platform’s influence in the governance systems of these yield farming applications.
Reserve offers a range of stablecoins, including eUSD, hyUSD, RSV, RSD, and ETH+, enabling users to create stablecoins backed by various assets.
In the broader DeFi market, the top 100 tokens experienced a bullish surge after three weeks of downward trends. Most tokens traded positively, resulting in an increase in the total market value of DeFi. While the total value locked in DeFi protocols remained below $50 billion, there was a notable surge of over $5 billion during the past week.