As a seasoned analyst with a background in blockchain technology and decentralized finance, I find the recent developments in the DeFi sector truly intriguing. In the past week, two significant announcements have emerged that could reshape the future of the DeFi landscape: BNB Chain’s introduction of native liquid staking on its BSC network and Chainlink’s launch of its Cross-Chain Interoperability Protocol (CCIP).
Hello there, I’m glad you’ve joined me at Finance Redefined – your go-to source for the latest and most relevant DeFi updates every week. As a dedicated crypto investor, I understand the importance of staying informed about the rapidly evolving decentralized finance landscape. That’s why I carefully curate this newsletter to deliver you the most noteworthy developments from the past seven days. Let’s dive in and explore the exciting world of DeFi together!
Over the past week, BNB Chain made an important announcement: it will introduce native liquid staking on its BNB Smart Chain (BSC) platform. This development aims to enable ecosystem members to keep their assets’ liquidity while simultaneously contributing to network security.
Chainlink, a decentralized finance (DeFi) protocol, introduced a cross-chain technology enabling seamless interaction between smart contracts on nine distinct blockchain platforms.
Recently, Arkham Research identified around six DeFi wallets containing substantial assets, approximately millions in value, that are currently unable to be withdrawn from DeFi bridge contracts.
BNB Chain will enable native liquid staking on BSC
BNB Chain announced that it will introduce native liquid staking on its BNB Smart Chain, marking a key step in transferring the functionalities of the BNB Beacon Chain to BSC as part of the plan to retire the latter.
The BNB Chain communicated via a message to CryptoMoon that they will be officially closing down the BNB Beacon Chain by June 2024. Yet, the features of this chain will be relocated and integrated into the Binance Smart Chain (BSC) prior to its termination.
BNB Chain announced that introducing liquid staking on the Binance Smart Chain (BSC) will empower network contributors to ensure its security while retaining the flexibility of their assets. The exact launch timeline for this new functionality has not been disclosed by BNB Chain, but it is predicted to go live between April and May.
Chainlink debuts new protocol aimed at boosting cross-chain interoperability
Chainlink’s Cross-Chain Interoperability Protocol (CCIP) is now publicly available, enabling greater connectivity between various blockchain networks. With this protocol, developers can facilitate permissionless token transfers and send smart contract messages across different platforms using CCIP.
Developers can now invoke and instigate function executions on smart contracts residing on different blockchains, thereby enhancing the compatibility and seamless interaction between cross-chain smart contracts.
According to Chainlink’s co-founder, Sergey Nazarov, the general availability of CCIP’s mainnet will simplify and quicken the development process for designers, enhancing cross-chain communication.
EigenLayer on the brink of potential yield crisis
Industry observers are raising concerns that EigenLayer, the leading staking platform on Ethereum in terms of total value locked, may be dealing with a significant yield issue.
Because of EigenLayer’s swift increase in Total Value Locked (TVL), there is a possibility that the protocol’s Actively Validated Services (AVS) might become insufficient, potentially resulting in significant yield decreases, as suggested by Chudnov, an anonymous builder at 3Jane derivatives exchange.
On April 16, as announced by EigenLayer, there were no longer any restrictions placed on the use of liquid staking tokens (LSTs) within their platform, following its launch on mainnet on April 10.
When a user deposits their LST tokens with EigenLayer through staking, these tokens are assigned to a node operator in the system. In turn, the node operator utilizes these deposits to obtain an Active Validator Share (AVS) on EigenLayer, while being remunerated with staking rewards.
In simpler terms, some of the Ethereum staking rewards go directly to users. However, the Anchor Verifiable Delay Functions (AVS) on the Ethereum protocol demand significantly less staked Ether for security, which might pose challenges down the line.
Wallets linked to Coinbase and Vitalik Buterin have millions “stuck” in bridge contracts
As a cryptocurrency market analyst, I’ve noticed that numerous large-scale crypto investors, or “whales,” are encountering issues with their assets worth between six and seven figures on various Decentralized Finance (DeFi) bridge contracts.
As a researcher at Arkham Research, I’ve discovered that the majority of bridge protocols function as native contracts, meaning users must manually intervene to retrieve their funds. Unfortunately, many large investors, or “whales,” have neglected this task, leaving their assets stranded for extended periods. We strongly advise these individuals to double-check their account settings and attempt to recover their funds without delay.
As a crypto investor, I’ve come across several wallets with large balances that seem to have been abandoned or forgotten. One of these belongs to Vitalik Buterin, Ethereum’s co-founder, who holds over a million dollars’ worth of assets in it, which have remained untouched for over seven months. Another wallet linked to Coinbase appears to have been forgotten for several months as well, and some other wallets have unclaimed assets that have gone unattended for over two years.
DeFi market overview
As a researcher analyzing cryptocurrency markets, I’ve noticed that the top 100 tokens by market capitalization within Decentralized Finance (DeFi) experienced a bearish week based on data from CryptoMoon Markets Pro and TradingView. The majority of these tokens showed weekly losses on their charts. Furthermore, the total value locked in DeFi protocols dipped below $100 billion.
I’m glad you found our analysis of this week’s significant Decentralized Finance (DeFi) news engaging. Tune in next Friday for additional captivating tales, deep insights, and educational content on the rapidly evolving DeFi landscape.
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2024-04-26 22:35