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COMP slumps 12% after DeFi protocol Compound Finance detects unusual activity

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The entire crypto market saw a minor uptick as Bitcoin and Ethereum flashed green after a long time. The DeFi tokens also followed suit. However, for Compound Finance it was a wholly different tale. The prominent DeFi interest rate protocol Compound Finance announced detecting an unusual activity in terms of the distribution of COMP following the execution of Proposal 062.

This was enough to send its native crypto-asset to a major downturn and even break a previously tested support area of $300. To put things into perspective, COMP has been consistently declining since forming a lower high last week. However, in just a few hours after Compound Finance’s tweet regarding a bug, the token shed over 12% and was currently priced at $296.

COMP
COMP slumps 12% after DeFi protocol Compound Finance detects unusual activity 2

Glitch in DeFi protocol

Compound Labs, the team behind the DeFi protocol, revealed that the recently introduced execution of Proposal 062 brought about a bug that alloweed users with unusual amounts of COMP to be claimed.

The purpose of the upgrade in question was essentially to divide the distribution of COMP token to liquidity suppliers and borrowers on the basis of governance-set ratios and not of the previous 50/50 share model. This new model also introduced minor bug patches. But the new bug came in the recent upgrade as part of the Comptroller contract and enabled users to claim as much as $50 million in COMP tokens.

Following the entire fiasco, Robert Lesher, who happens to be the founder of Compound Labs stated that the Comptroller contract address contains a limited number of COMP tokens. He also went onto clarify that a different Reservoir contract address contains a majority of the reward. Hence “the impact is bounded, at worst, 280,000 COMP tokens, the exec added. Talking about the upgrade, the exec stated,

“Proposal 62 and the new contract were written by a community member, with review from multiple other community members. This is the greatest opportunity, and greatest risk for a decentralized protocol–that an open development process allows a bug to enter production. There are no admin controls or community tools to disable the COMP distribution; any changes to the protocol require a 7-day governance process to make their way into production.”

Leshner also stated that Labs, and members of the community are currently investigating the discrepancies in the distribution of the COMP token.

‘Aave Pro’ gears up to onboard institutional investors in DeFi

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The prominent decentralized finance [DeFi] money market, Aave, is preparing for the launch of its “pro” version dubbed “Aave Pro,” a permissioned platform for institutional investors sometime in July. Stani Kulechov, the founder of the platform had first teased about the professional version two months back.

According to the announcement, Aave Pro would enable the entry of institutions, fintech, and the corporate world to access decentralized finance grade yields on the platform after certain criteria are met.

Besides, right after the development, the protocol’s native token AAVE noted a fresh uptick despite a market-wide dull price action. It jumped by 30% weekly, which drove its price above $266 at the time of writing. It was the fourth-largest DeFi token with a market cap of $3.38 billion and a 24-hour trading volume of $481 million.

Aave
'Aave Pro' gears up to onboard institutional investors in DeFi 4

What does Aave Pro entail?

A DeFi trader also shared a screenshot of the email sent out by Aave which revealed that the Pro platform leverages tested and audited V2 smart contracts. Only participants with proper Know-Your-Customer [KYC] verification will be allowed to access its pool. Initially, the launch will introduce support for just four assets – Bitcoin, Ethereum, USDC, and Aave, due to institutional demand. Additionally, the liquidity pools of Pro will be kept separate from that of the regular liquidity pools of the decentralized lending protocol.

Eventually, the platform also intends to decentralize the governance of Aave Pro.

It also stated that the Pro edition will be launched in collaboration with digital asset and settlement Fireblocks. The custodian service provider had previously partnered with DeFi platform Compound to enable high-profile market players such as institutions like market makers, hedge funds, and exchanges to access DeFi features via the lending platform.

Meanwhile, this news comes at the heels of an ongoing lawsuit against the security platform by StakeHound. The latter had sued Fireblocks over the alleged deletion of private keys to a wallet that had 38,178 ETH, equating to more than $72 million at the time.

DeFi TVL Exceeds $50 Billion As Compound Climbs New Record

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Several prominent Ethereum-driven DeFi protocols have posted a strong bullish move as a new week dawned. This was accompanied by the total value locked across all decentralized finance protocols has hit another milestone.

tvl
DeFi TVL Exceeds $50 Billion As Compound Climbs New Record 6

According to the latest stats compiled by DeFi Pulse, the TVL in DeFi blasted past a whopping $50 billion on the 5th of April after a renewed market push. With this, the TVL figure was currently found to be almost twice the capitalization of the third-largest crypto-asset, Binance Coin [BNB]. Since the February pullback, the total value locked in decentralized finance protocols has maintained a steady uptrend.

Side by side, the rising TVL was the increase in the token price of many of the top protocols as DeFi traders began stacking during the market lows even as the decentralized finance sector took a break from the spotlight, as opposed to 2020 summer when it was in all rage.

Ethereum Locked Hits ATH Too

As the price of Ethereum established a much-anticipated peak, the cryptocurrency locked in DeFi also surged to a fresh high of 10.78 million ETH. This amount of Ether accounts for roughly 10% of the altcoin’s total circulating supply.

Leading the chart was the decentralized lending protocol, Compound, which recently climbed all the way to $15 billion in terms of the total lending value. As it dominated the decentralized finance market, it contributed to roughly 19% of the value locked up. Next up was another lending platform, Maker with $7.73 billion and DEX platform Uniswap with over $5 billion.

Bitcoin Locked In DeFi Attempts Recovery

The world’s largest cryptocurrency has stalled its momentum around $59K. Despite weeks of consolidating, Bitcoin has failed to establish a record with respect to its value. Alongside, the dull price action, Bitcoin locked up in all decentralized finance projects recently took a tumble to a three-month low.

Its recovery to the current figure of around 138K BTC was not impressive.

Ethereum Whale Sent ~$1.3B To DeFi Lending Protocol Compound

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The number of Ethereum whales [i.e., large entities who held massive amounts of ETH tokens] has been pretty consistent since the crash in February last week. However, in the latest development, an unknown whale just transferred more than 629,000 ETH.

According to Whale Alert’s tweet on the same, the recipient wallet to which almost $1.3 billion was sent was the smart contract for the decentralized finance [DeFi] protocol Compound contract.

The sender remained anonymous. According to the data available, the whale paid a gas fee of 0.0205 ETH, that is more than $43. However, the movement of a large sum of money coincided with the price of the second-largest crypto-asset hitting an all-time high on the 2nd of April.

Upon further inspection, it was found that the same Compound contract received around 300 ETH from another unknown wallet the previous day, and 13,000 ETH $27 million a couple of days ago.

DeFi Captures Interest of Ethereum Whales

ETH
Ethereum Whale Sent ~$1.3B To DeFi Lending Protocol Compound 8

Over the past few weeks, large ETH holders have refrained from offloading their bags. As per the latest stats, the number of wallets holding over 10K ETH has declined by less than 1% over the last four months. Meanwhile, 100-10,000 ETH addresses have taken a much more substantial plunge of 7.2% over the same time period.

In fact. The mid-tier level addresses were found to be pouring more ETH tokens into DeFi.

This was evident in the above chart compiled by DeFi Pulse, which indicated that Ethereum locked across all decentralized finance [DeFi] protocols have soared to an all-time high of $10.224 million as of the 4th of April.

It is important to note that the amount of the token locked topped 10 million for the first time ever on the 11th of March. As price took a tumble, the DeFi figure also remained dull before establishing a major top.

Additionally, it is worth noting that some of Ethereum’s circulating supply was also directed towards its Beacon Chain, which is essentially a Proof-of-Stake [PoS] blockchain. This was indicative of the onset of Ethereum’s transformation of consensus mechanism from Proof-of-Work [PoW] to Proof-of-Stake.

DeFi’s Appeal Still Strong; TVL Nears $29 Billion Before Tumbling

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Coins powering major decentralized finance [DeFi] protocols saw some strongest gains as the market hinted at a recovery earlier this week. This, in turn, prompted the total value locked [TVL] in DeFi to touch an all-time high of nearly $30 billion. on the 27th of January.

However, as Bitcoin’s price briefly slid below the support line of $30k on late Wednesday, DeFi’s TVL figures has since cooled off as it fell back below $24 billion.

DeFi Coins Caught In Hot Price Action

As for the DeFi coins’ value, except for Wrapped Bitcoin [WBTC], other top tokens have had a prolific week amassing double-digit gains.

Over the last 7-days, leading DEX Uniswap’s UNI token has recorded the most gains of nearly 80% and was valued at $14.17. TWJ had earlier reported that the protocol’s native token saw a ballistic rise in its price this bull run and emerged as one of the best-performing digital tokens in the world.

Open-source non-custodial platform Aave’s native token has also been on a bull run for the past several weeks and was priced at $279.02, at the time of writing. Its price made a run for $290 before losing steam. Despite the retracement, Aave noted a 7-day gains of 61.38%.

Compound’s governance token, COMP was the third-best performing token this week amassing gains of 23.77% over the same period of time.

DeFi Trends

According to a recent report by the blockchain company ConsenSys revealed that “the breadth of invention and adoption of DeFi kept pace in Q4 of 2020″ even as ” DeFi summer cooled off”.

There was certainly the rise of decentralized exchanges or DEXs in the last quarter of the year. The report stated that the total trade volume on DEXs in Q4 crossed a whopping $60 billion, and one of the main drivers of this activity is because Wrapped Ethereum [WETH] made it simple to swap ETH for any other ERC-20 token.

The last quarter also witnessed an increased demand from institutions and
other blockchain-based protocols to access the liquidity and economic activity on Ethereum. This can be attributed to the fact that despite its scalability issues Ethereum has managed to attract and accommodate digital assets from other blockchain protocols.

Undoubtedly, the appeal of DeFi has grown substantially despite Bitcoin’s price grabbing mainstream headlines. Many industry players are keen that the ecosystem’s adoption and utility permeating will be the main trends throughout 2021.

Compound’s COMP Token Makes Its Way Into The Coinbase Earn Program

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The crypto-verse has opened up several opportunities for individuals to earn money. While acquiring money by watching ads or referring people has been in practice for a while now, a new way of making some money seems to be causing quite a stir in the crypto industry. Coinbase’s latest initiative sheds light on the same.

Learn To Earn!

Prominent cryptocurrency exchange, Coinbase had rolled out a program back in 2019 that allowed users to earn crypto by learning about different crypto assets. The Coinbase Earn Program revealed that users across 100 countries could avail this offer. Initially, the program started off with a pilot where users were mandated to educate themselves about the ERC-20 token. Following this, several quizzes pertaining to Stellar [XLM], Basic Attention Token [BAT] as well as Zcash [ZEC] were also put in place. The latest asset to join the list is Compound’s COMP token.

An array of lessons regarding Compound’s governance token were listed in on the Coinbase Earn Program. A total of four lessons were a part of this course. While the first lesson focused on earning interest with Compound, the second highlighted the procedure of borrowing crypto with Compound. The final lesson part of the “Beginner Lessons” was the introduction to the COMP token. All of these lessons were in the form of videos and users who completed these lessons would earn $3 worth of COMP per lesson.

The “Advanced Lessons” section had only one lesson that taught the users how to access Compound via Coinbase Wallet. This lesson further presented a total of $10 worth of COMP to its users. Additionally, users could earn up to $10 worth of COMP by inviting people to sign up for the “Learn Compound. Earn COMP” program.

The Coinbase Earn program offers a series of assets that users can learn to earn. The list includes Maker, Celo, EOS, Stellar, Kyber Network, Orchid, Tezos, DAI, 0x, Basic Attention Token as well as Zcash.

The DeFi space has been gaining immense traction over the last few months. Compound’s COMP token was first listed on Coinbase and this further brought significant gains to the coin. After a few weeks of rendering an exceptional performance, the coin failed to continue its hot streak. At the time of writing, the COMP token was trading for $107.49 with a 7.05% plummet in its price over the last 24-hours.

The Amount of Value Locked in DeFi Just Hit $9 Billion

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DeFi is growing faster than ever

The decentralized finance economy has grown massively this year and as of the time of writing, the industry is now worth $9.017 billion, according to the on-chain data resource DeFi Pulse. Total Value Locked [TVL] essentially means the amount of money running through its smart contracts.

The industry has grown incredibly quickly with its TVL figures surging by more than 119% over the course of just one month.

DeFi

With a large portion of DeFi-based applications, tokens, and services hosted on the Ethereum network, its native token, ETH locked in it has also surged to a new all-time high of 5.229 million. This, in turn, has reignited bullish projections in terms of ETH’s price which stood at $404, at the time of writing.

ETH 5

Race for first place in DeFi’s TVL intensifies

Recently ousting Maker for the position of the biggest DeFi protocol was Aave [which was previously known as Ethlend] with a dominance of 18.98% over the last 24-hours as its TVL [USD] reached $1.71 billion. One of the significant factors of Aave lending protocol outpacing previous front runners was its LEND token which soared more than 4500% since the beginning of the year.

Adding to the surging popularity was the recent development of the issuance of a license to Aave’s U.K. business entity, Aave Limited by the Electronic Money Institution.

Meanwhile, Maker settled for the second-biggest position with $1.43 billion locked in smart contracts. Trailing not far behind was Curve protocol with a figure of $1.27 billion.

This was followed by Yearn.Finance at $956.3 million. Interestingly while it neared the coveted league of $1 billion TVL protocols, its native token, YFI recently hit a new all-time high following its listing on Aave’s platform and a hint at a partnership with the crypto-derivative platform, FTX.

Referring to the collaboration news, Founder of the project, Andre Cronje tweeted,

Total Value Locked in MakerDAO Reaches $1 Billion in DeFi’s First 

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MakerDAO is on the road to atonement after poor performance at the beginning of 2020. The total value locked in MakerDAO has reached $1 billion as its primary asset, Ethereum, skyrocketed 40% over the last week. As the first decentralized finance protocol to hit ten figures, MakerDAO has restored its position as DeFi ‘s top protocol.

MakerDAO is a credit market on open finance that allows users to securitize a couple of tokens to secure a DAI loan. The outright majority of operations on Maker involves users taking leveraged long positions on Ethereum. This is achieved by collateralizing Ethereum to secure DAI and using the DAI to purchase more Ethereum.

MakerDAO

Ethereum price surge drives MakerDAO to pole position

Ethereum ‘s recent bull-run has driven MakerDAO back to number one, outpacing Compound as the most collateralized decentralized finance protocol. Over the last week, the total figure of Ether locked in MakerDAO increased by about 300,000 ETH (about $96 million). The most recent milestone of Maker to hit $1 billion is not due to the large amount of Ethereum finding its way into the protocol, but rather to the recent appreciation of the value of Ethereum.

On July 22, the Ether DAI ceiling was increased from 180 million DAI to 220 million DAI. Notably, the DAI ceilings ensure the supply of DAI and do not project, causing the supply shocker. Five days after the DAI ceiling has been set, the amount of DAI secured against Ethereum currently stands at 218 million, and is about to reach 100% very soon.

MakerDAO

Progressive growth in the DeFi industry

Furthermore, MakerDAO is followed closely by Compound on the list of DeFi protocols with the highest value locked. Particularly, Compound has a value of $767 million locked in its protocol currently. The two are followed by Synthetix, a decentralized platform built on Ethereum, with $429 million in total value locked.

The year 2020 has been a dull one for MakerDAO and MKR investors. However, things have begun looking good as a new market cycle commences. MakerDAO can now start again and maintain its spot as the top DeFi protocol by adding a range of collateral and functionalities.

DeFi Total Value Locked in USD Reaches $3.5 Billion; ETH Still Uncorrelated

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Back on March 13th, when Total Locked Value in DeFi plummeted down to $562 million from an all-time high of $1.28 billion in February, many expected it to be the beginning of the end for Decentralized Finance tokens. Market commentators believed that the hype has fizzled out and DeFi is going to lose its market. Little did they know that the DeFi industry was on its way to exponential growth in 2020.

DEFI

According to DeFi pulse, the total value locked in DeFi has reached a whopping $3.5 billion at press time, but a majority of the growth came over the span of the last 30-45 days.

On June 16th, the TVL under DeFi was close to $1.04 billion but since then, the market cap has improved by $2.5 billion, leading to its all-time high TVL at the time of writing.

The top DeFi tokens incurring high locked USD value are Maker, Aave, Compound, Synthetix, and Curve Finance. Over the past day, Aave and Curve Finance tokens have resulted in a hike of 17.61 and 16.17 percent, taking their locked value to $609 million and $385 million respectively.

Why is DeFi pumping so much?

Now, even though DeFi is based on Ethereum, DeFi’s immense market capture did not lead to an increase in Ether’s valuation. It is solely because Ether’s only functionality in the DeFi space is to be utilized for gas transactions. Other than that, the functionality of DeFi and Ether is largely independent.

DeFi’s massive increment over the past month has been due to the introduction of Yield Farming. This new form of decentralized lending was first launched by Compound’s governance token, which initially took DeFi’s TVL over $2 billion. At the time of writing, Compound had over $553 million in TVL.

Now, continuing on Compound’s blueprint, iEarn Finance or Curve Finance ended up launching its governance token and they released 1000 percent annual percentage yield or API for their investors, which currently makes it the highest-earning pool in DeFi.

Ether’s value continues to lag behind

As reported previously, the high usage of DeFi had led to an explosion of Ethereum transaction fees that were last observed in October 2018. With Ether lagging on its own-parent chain, many were speculating that the ERC-2- tokens may become of secondary importance on Ethereum if DeFi tokens continued to attract such high-levels of interest.