Welcome to Finance Redefined, your weekly dose of crucial decentralized finance (DeFi) insights – a newsletter crafted to bring you the most important updates from the past week.
The craze surrounding memecoins has propelled Solana-based decentralized exchanges (DEX) to the top of the trading volume charts, surpassing their Ethereum counterparts. Within hours of their launch, some tokens on DEXs surpassed the trading volume of Ethereum-based memecoins.
In another memecoin-related news, the Milady nonfungible token (NFT) collection has jumped on the memecoin bandwagon by launching its own token, which raised $18.6 million in just two hours after its presale announcement.
ParaSwap narrowly avoided a hack by temporarily pausing its Augustus v6 contract application programming interface (API) after discovering a vulnerability. The protocol protected the funds of potential victims through a white hat intervention.
In other news, the price of Ether (ETH) has dropped by 18% in the past week after reaching a new all-time high above $4,000. If the price falls to $3,100, there is a risk of liquidating $212 million worth of positions.
Solana’s activity has surpassed Ethereum amid the memecoin frenzy, even though transactions have been failing due to the network’s struggle to keep up. On March 16, Solana’s total trading volume exceeded Ethereum’s, reaching $3.52 billion, surpassing the Ethereum network’s daily volume by over $1.1 billion, according to DefiLlama.
The NFT collection Milady’s Solana memecoin has raised 91,486 SOL ($18.6 million) within two hours of its presale announcement. On March 18, Milady introduced the Solana-based memecoin, Milady Wif Hat, which is named after the popular Solana memecoin Dogwifhat (WIF). The minimum investment is 1 SOL, with a cap of 88,888 SOL.
Shortly after, the presale was oversubscribed, and the team announced its closure: “Milady Wif Hat presale has reached its limit of 88,888 SOL and is now closed. Any additional Solana raised will be fully refunded.”
DeFi aggregator ParaSwap discovered a vulnerability in its newly launched Augustus v6 contract and prevented a significant loss of funds through timely white hat intervention. On March 18, the ParaSwap Augustus v6 contract went live, aiming to improve swapping efficiency and reduce gas fees. However, the contract had a critical vulnerability that allowed hackers to drain funds with approval.
If the price of Ether falls below $3,100, the cryptocurrency market could see over $212 million worth of leveraged long positions liquidated. Ether has dropped 9.3% to $3,254 in the 24 hours leading up to March 19, 10:40 am UTC. On the weekly chart, Ether is down more than 18%, and falling to $3,100 would wipe out over $212 million worth of long leverage, according to Coinglass data.
Data from Cointelegraph Markets Pro and TradingView reveals 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 has dipped below $100 billion.
Thank you for reading our summary of this week’s most significant DeFi developments. Join us next Friday for more stories, insights, and education about this rapidly evolving space.