Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you the most significant developments from the past week.
The past week in DeFi was headlined by the zkSync (ZK) token airdrop and the fact that a significant chunk of the wallets that received the airdropped tokens have already sold them.
In another major event, the Kraken exchange was exploited for $3 million, but security firm CertiK claimed it was a white hat operation. After days of back and forth with accusations of blackmailing and extortion, the security firm returned the exploited assets to the crypto exchange.
Kraken recovers $3 million from CertiK, ending bug bounty saga
Cryptocurrency exchange Kraken has recovered missing funds following a high-profile bug bounty exploit fiasco. Kraken confirmed the return of the stolen digital assets worth nearly $3 million, ending the Kraken-CertiK saga that started on June 9.
Nicholas Percoco, Kraken’s chief security officer, confirmed the recovery of the funds minus transaction fees. The Kraken exec first announced the $3 million worth of missing funds on June 19 when he claimed that a “security researcher” maliciously withdrew them from the treasury after discovering a bug and sharing the vulnerability with others.
MetaMask privacy updates: What users should know
Consensys, the company behind MetaMask, has updated its privacy policy to improve user consent, transparency and control of their personal data. According to a press release shared with Cointelegraph, the changes aim to apply greater privacy and security measures for users of Consensys’ services, including MetaMask.
Consensys made several significant updates to its privacy policy, granting internet protocol address processing transparency, expanding its scope and improving user data management.
41% of top ZK airdrop wallets have already sold everything — Nansen
Nearly half of the top wallets that received the new ZK token on Monday, June 17, have already sold their entire allocation in the airdrop, contributing to a 34.5% fall in the price of ZK since its launch.
Data from blockchain analytics firm Nansen shows that nearly 41% of tracked addresses sold their entire airdrop, while 29.2% sold at least some of their tokens. The total amount sold across both cohorts was over 486 million ZK. Just over 30% of the top receiving wallets have held onto their ZK tokens.
1inch partners with Blockaid to combat DeFi fraud and cyber threats
DeFi platform 1inch has partnered with Web3 security provider Blockaid to upgrade security measures within its ecosystem.
On June 20, 1inch Network revealed its aim of identifying and preventing fraudulent activities like phishing scams and hacks. In an announcement, the DeFi platform highlighted that Blockaid’s security features, which simulate transactions before execution, will play an integral role in enhancing DeFi security.
DeFi market overview
Data from Cointelegraph Markets Pro and TradingView shows that DeFi’s top 100 tokens by market capitalization had a bearish week, with most trading in the red on the weekly charts. The total value locked in DeFi protocols fell below $100 billion.
Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education regarding this dynamically advancing space.