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 saw Coinbase CEO stand up for the nascent ecosystem amid growing calls for enforcement action, while Polygon CEO has said that its $1 billion zero-knowledge proof rollup bet is paying off.
MakerDAO’s founder believes decentralized stablecoins could dominate crypto, while Solidus Labs says decentralized exchanges have become a magnet for wash trading.
The top 100 DeFi tokens had another mixed week with bearish domination as the majority of the tokens traded in red on the weekly charts.
Coinbase CEO champions DeFi, calls for court action to set legal precedent
Coinbase CEO Brian Armstrong has expressed his endorsement of DeFi protocols. In a recent social media post, Armstrong urged DeFi protocols to consider legal proceedings in court to set a precedent, as the legal system has consistently demonstrated its dedication to upholding the rule of law. The current approach is mainly pushing a crucial industry toward overseas jurisdictions, he said.
According to his post on X (formerly Twitter), the United States Commodities Futures Trading Commission should avoid taking enforcement actions against DeFi protocols, as they do not function as conventional financial service businesses, and it’s questionable whether the Commodity Exchange Act is even applicable to them.
Decentralized stablecoins could dominate crypto: MakerDAO founder
Decentralized stablecoins may eventually dominate the stablecoin market, so long as crypto “ends up living up to its potential,” says Rune Christensen, co-founder of DeFi pioneer MakerDAO.
Speaking to Cointelegraph’s Andrew Fenton at Token2049 in Singapore, Christensen aired his thoughts on the future of decentralized stablecoins, such as Dai (DAI), and their role in the wider crypto economy.
Polygon co-founder: $1B bet on ZK-rollups paying off
Polygon co-founder Sandeep Nailwal believes the layer-2 blockchain firm is reaping the benefits of allocating $1 billion to develop zero-knowledge (ZK) proof-powered scaling solutions for the Ethereum ecosystem.
Speaking at a keynote address during the latest edition of the Token2049 conference in Singapore, Nailwal touched on the development of “Polygon 2.0” scaling efforts and the promise of recursive ZK-proof technology to create a seamless…