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😬 Unsecured DeFi Lenders Look Shaky in Face of FTX Contagion

Hello Defiers! Here’s what we’re covering today:

FTX Crisis: Solana
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Trending in The Defiant

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DeFi Lending

😬 Unsecured DeFi Lenders Look Shaky in Face of FTX Contagion

Alameda Owes DeFi Lenders $13M as TVL Drops for Major Players

By Owen Fernau

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EXPOSED The fallout from FTX’s collapse is just starting and within decentralized finance, platforms enabling unsecured loans are the most exposed relative to collateralized counterparts with millions in loans on the line, while total value locked slides.


Market Action

📈 Markets Rally After Binance Proposes ‘Industry Recovery Fund’

DeFi Derivatives Surge as Traders Flee Exchanges

By Aleksandar Gilbert

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RALLY Crypto markets rallied early Monday after Binance CEO Changpeng Zhao (CZ) proposed to create an “industry recovery fund” that would invest in companies struggling to stay afloat in the wake of FTX’s collapse. Major cryptocurrencies spiked after Zhao’s announcement just after 1:30 a.m. New York time, despite few details about the proposed fund.


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Liquity’s Chicken Bonds enhanced yield with DeFi Saver

DeFi Saver is an all-in-one dashboard for creating, managing and tracking positions with automatic liquidation protection and leverage management options for only the most trusted DeFi protocols, Liquity among them.

Liquity, interest-free borrowing protocol built on Ethereum, recently introduced a novel product offering The Defiant wrote aboutChicken Bonds. Chicken Bonds are a new, innovative form of bonding mechanism in DeFi.

Chicken Bonds are an innovative bonding mechanism offering several key benefits to those willing to bond their Liquity native stablecoin LUSD. In exchange for depositing and bonding LUSD, users accrue boosted LUSD (bLUSD), derivative token.

Primary benefit for bonding LUSD instead of supplying to Liquity’s Stability Pool is the amplified yield users get from Liquity’s internal liquidation mechanism as well as from other liquidity sources like the pools in Curve. Alongside improved liquidity for the LUSD stablecoin, the most important benefit to users is bonding with no time commitment or maturity. Users can withdraw principal LUSD fully and chicken out at any time, renouncing the accrued interest. The other option being to chicken in and claim accrued bLUSD, forgoing the initial LUSD deposit.

As the most comprehensive decentralized frontend for Liquity, DeFi Saver continues its devoted support with dedicated Chicken Bonds dashboard and advanced protocol actions and strategies. Alongside basic actions, DeFi Saver offers users options to Claim and Sell bLUSD or Rebond (Claim, Sell and create new bond). DeFi Saver team is even preparing automation options for the new Liquity innovation.

Get the most out of your Liquity experience with DeFi Saver.

FTX Crisis: Solana

📉 Solana Discloses Losses From FTX Collapse

Serum DEX Heavily Impacted

By Tarang Khaitan

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BANKRUPT The Solana Foundation and Solana Labs have disclosed their asset exposure and transaction histories linked to bankrupt crypto exchange FTX and its sister trading firm Alameda Research.


Crypto Exchanges

😳 Disclosing Reserves May Backfire for Centralized Exchanges

Crypto.com’s Vow to Audit Reserves Spurs Scrutiny From Blockchain Sleuths

By Samuel Haig

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SHIFT In response to FTX’s bankruptcy, a number of centralized crypto exchanges, including Binance, are racing to publish data on their reserves and ease the worries of investors. Yet the shift has already produced a cautionary tale that shows publishing reserve data may reveal problematic practices.


FTX: Investigations

🏛 FTX Confirms Justice, SEC Probes in Bankruptcy Filing

FTX Appoints Independent Directors to Ensure ‘Proper Governance’

By Edward Robinson  

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PROBES In the first significant filing of its bankruptcy, FTX confirmed that the U.S. Department of Justice and other federal and state agencies are probing the exchange in connection with its failure last week. 


FTX Crisis: FTT Tokens

👀 FTX Deployer Transfers $400M of FTT Tokens

Regulator Denies Instructing Exchange to Process Bahamian Withdrawals

By Aleksandar Gilbert

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TRANSFER Bankrupt crypto exchange FTX transferred nearly $400M worth of newly created FTT tokens to a yet-to-be-identified wallet Saturday night, sending the price of the token crashing to new lows.


FTX Crisis: Solana

💥 FTX-Backed Bitcoin and Ether Tokens Depeg On Solana

soBTC Is Trading at a 50% Discount

By Aleksandar Gilbert

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PEG Wrapped versions of Bitcoin and Ether on the Solana blockchain have lost their peg to the underlying assets in the wake of FTX’s bankruptcy filing. Bitcoin on Solana, or soBTC, was trading at $8,000, less than half the price of native Bitcoin. At one point, it fell as low as $4,000 per token.



🦹🏻‍♂️ FTX Hacked for at Least $650M in Mega-Heist Friday Night

Hackers drained hundreds of millions of dollars from insolvent crypto exchange FTX Friday night

By Aleksandar Gilbert

FTX Hacked for at Least $650M in Mega-Heist Friday Night

HEISTS Hackers drained hundreds of millions of dollars from insolvent crypto exchange FTX Friday night, just hours after it declared bankruptcy, in one of the largest heists in crypto history. 

WALLETS There are five known wallet addresses involved in the exploit. One hacker made off with about $450M in cryptocurrencies, according to crypto sleuth ZachXBT, while about $200M went to another pair of wallets. The total amount drained from the failed exchange is at least $650M, according to estimates from ZachXBT.



👨🏻‍🍳 A Recipe for Making DeFi Lending Sustainable and Stable

Market Manipulators Must be Stopped — Here’s How

By Amit Chaudhary  

A Recipe for Making DeFi Lending Sustainable and Stable

STABILITY The world of decentralized lending has been rightly referred to as the “Wild West” more than once. By removing human oversight, new protocols have been able to offer impressive yields on many of their services, but at the huge cost of lowered stability. 

MANIPULATORS Many are waking up to the fact that this is unsustainable and unnecessary, as market manipulators are crushing retail investors on a regular basis. New mechanisms for tapping into legacy credit may restore balance while decentralized and cryptographic proofs can ensure that honest actors run the show.



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Defiant Video

📺 FTX Saga Update: Binance Recovery Fund, Crypto.com Reserves, FTX Hack

📺 Weekly Recap: The Fall of FTX – everything we know so far

Podcast Video

📺🎙 Podcast: Robinhood is coming after MetaMask with Polygon Web3 Wallets

Trending in The Defiant


🔗 Solana Ecosystem Facts Related To FTX Bankruptcy: Solana

During the events of the past week, the Solana network has not experienced any notable performance or uptime issues.

🔗 Let’s Actually Commit to Proofs of Reserve This Time, Okay?: CoinDesk

I’m not going to mince words. The fraud-driven collapse of FTX and Alameda Research is, in my estimation, the worst single event in the crypto industry since its inception.

🧑‍💻 ✍️ Stories in The Defiant are written by Owen Fernau, Aleksandar Gilbert, Samuel Haig, and yyctrader, and edited by Edward Robinson, yyctrader and Camila Russo. Videos were produced by Alp Gasimov. Podcast was led by Camila, edited by Alp.

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