This week's Finance Redefined: Harmony faces backlash over its compensation plan for horizon bridge hack

View this email in your browser Harmony faces backlash over its compensation plan for horizon bridge hack July 22-29, 2022 Written by Prashant Jha   Welcome to Finance Redefined, your weekly dose of key decentralized finance (DeFi) insights, a newsletter crafted to bring you some of the major developments over the last week. This past week, the DeFi ecosystem saw another exploit followed by stablecoin depegging in the form of Solana-based NIRV stablecoin. Harmony blockchain faced heavy backlash over its plan to mint 4.97 billion ONE tokens to compensate victims of the $100 million Horizon Bridge hack in June. In the wake of the Terra collapse, the investors have become more vigilant and shifting toward lower-risk crypto yields, according to the general manager of Australian fintech firm Block Earner. LidoDAO has voted to reject a proposal that would have sent 1% of the LDO token supply to Dragonfly Capital in exchange for about $14.5 million in Dai (DAI). The fed interest rate hike on Wednesday brought a wave of bullish momentum to the crypto market. Most DeFi tokens also registered a positive surge on the weekly chart. Solana-based stablecoin NIRV drops 85% following a $3.5M exploit Solana-based algorithmic stablecoin NIRV has become the latest stablecoin to fail after dropping 85% from its United States dollar peg following a hack on adaptive yield protocol Nirvana Finance on Wednesday. The flash loan attack, which also saw Nirvana Finance's native token ANA drop by 85%, resulted in the loss of $3.49 million worth of Tether (USDT), with the SolanaFM team being the first to confirm that the funds were siphoned via a flash loan attack on Wednesday. Continue reading Backlash as Harmony proposes minting 4.97B tokens to reimburse victims The team behind the Harmony blockchain project has proposed the minting of up to 4.97 billion worth of its native token ONE to compensate victims of the $100 million Horizon Bridge hack in June. The proposal has been met with a significant amount of backlash from members of the community, with many highlighting concerns that such a large issuance of new tokens would result in inflationary pressure on the asset and bring its value down. Continue reading Investors shifting toward lower-risk crypto yields — Block Earner GM Block Earner, an Australian fintech company, says the fall of Terra in May has led to "positive surprises" for his company, with investors beginning to find their way toward the lower-risk crypto yield products they offer. Speaking to Cointelegraph, the company's general manager Apurva Chiranewala revealed that the company has seen a surge of investors previously seeking double-digit returns but now wants a "less risky version" of those returns. Continue reading LidoDAO says no to selling $14.5M in LDO tokens to Dragonfly Capital LidoDAO, the governance body that controls Lido Finance, has voted to reject a proposal that would have sent 1% of the LDO token supply to Dragonfly Capital in exchange for about $14.5 million in DAI. LDO is the native token on the Lido Finance protocol, which issues the Lido Staked Ether (stETH) token. DAI is the USD-pegged stablecoin issued by the Maker Protocol. If it had passed, crypto venture capitalist Dragonfly Capital would have received 10 million LDO at $1.45 each. Continue reading DeFi market overview 📊 Analytical data reveals that DeFi's total value locked registered another $8 billion rise from the past week, posting a value of $64.4 billion. Data from Cointelegraph Markets Pro and TradingView shows that DeFi's top-100 tokens by market capitalization had a mixed week, with several tokens trading in red while a few others registered even double-digainsgain. Lido DAO (LDO) maintained its bullish momentum this week as well, with a 42.7% rise over the past week, followed by Synthetix (SNX) with a 25% surge. Uniswap (UNI) registered a 24% surge over the past week, while The Graph (GRT) saw a 22% rise in price over the past seven days. Thanks for reading our summary of this week's most impactful DeFi developments. Join us again next Friday for more stories, insights and education in this dynamically advancing space.   Interested in law and policy?  Subscribe to Law Decoded 3.5 million people follow us on social media

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