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A small pricing error in wstETH collateral caused $27 million in Aave liquidations, highlighting the critical role of price oracles and automated risk systems in DeFi.
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Latest News on DeFi
Decentralized finance, also known as DeFi, is a sector within the overall cryptocurrency and blockchain industry focused on providing a decentralized version of mainstream financial opportunities. In the mainstream world, financial institutions offer customers access to opportunities such as cash storage and loans. However, these offerings are governed by centralized entities.
With the help of distributed ledger technology, or DLT, DeFi solutions offer a number of the same opportunities, but they are controlled by a large number of participants who abide by rules enforced by smart contracts. DeFi solutions also often give greater flexibility in terms of users’ ability to store and control their own assets. Additionally, decentralized exchanges, or DEXs, further decentralize digital asset trading, in contrast to trading on centralized digital asset platforms.
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In a post-mortem of the incident, Aave clarified it was not slippage, but an illiquid market that caused the trader to lose over $50 million while swapping USDT for AAVE.
2162 - News
Aave founder Stani Kulechov says a user confirmed a warning to proceed with the swap, despite “extraordinary slippage,” while a MEV bot also attacked the large transaction.
1811 - News
The funding will support development of a programmable execution layer designed to enable faster issuance and settlement of digital assets on the network.
1647 - Analysis
Chains are launching perp DEXs to capture trading activity, but history suggests liquidity will consolidate around only a handful of platforms.
1153 - News
Bonk.fun warned users not to use its site after attackers hijacked the domain and pushed a fake wallet-draining prompt.
1938 - News
Capo, an external oracle solution used by Aave, triggered around $27 million in liquidations after a pricing glitch, but the lending platform said it is stepping in to cover the losses.
1361 - Market Analysis
Bitcoin is the frontrunner in the crypto market, while 36% of altcoins trade near their all-time lows. Do altcoin price metrics suggest an altseason is next?
2873 - News
The integration allows Ledger devices to sign BTCVault transactions as Babylon develops infrastructure to use Bitcoin as collateral.
2425 - Opinion
DeFi lacks its final primitive. Insurance turns hidden risks into priced, programmable coverage. Programmable insurance with uncorrelated capital creates TVC safety nets.
1669 - News
The Curve Finance team told PancakeSwap that it must go through the proper licensing process to collaborate and use code created by Curve.
4262 - Newsletter
Bitcoin bounced back this week as stablecoin inflows surged, and DeFi faced fresh pressure from Aave governance strife, exploits and exchange security moves.
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Trading in tokenized stocks and ETFs via 1inch’s Ondo integration has topped $2.5 billion, as real-world assets become one of the few reliable growth engines in a weak crypto market.
2004 - News
Crypto security researchers say the hacker exploited a bug allowing them to mint tokens, before swapping the freely-gained tokens for another tied to Bitcoin.
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Oracle provider RedStone deploys price feeds on Stellar as the network expands DeFi infrastructure and experiments with lending and tokenized assets.
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