Introduction
Undoubtedly, DeFi has seen new advancements in zero-knowledge proofs (ZK-proofs) as a scaling solution as more DeFi protocols embraced the technology. The top 100 DeFi tokens had a mixed performance in the month of July, with most of the tokens continuing to trade in a similar range as the beginning of the month. A new United States Senate DeFi bill attracted a lot of scrutiny — though not necessarily of the positive kind — as many stakeholders came out to slam the “unworkable” legislation. The CEO of the dydx Foundation made a bold prediction that centralized exchanges will eventually become a gateway for DeFi, while Polygon 2.0 laid the groundwork for decentralized governance.
Current Events In The DeFi Ecosystem
The DeFi ecosystem has been witnessing several additions and upgrdation in recent times making it more compatible with digital assets and the related ecosystem. Some of the most talked about events have reshaped the DeFi and are expected to pave the way for the centralized exchanges to be prevailing strongly in the cryptosphere.
Centralized exchanges will become gateways for DeFi: dYdX Foundation
An independent DeFi nonprofit organization that was introduced to support the dYdX protocol has recently launched its public testnet compatible with its latest version, v4. This indicates that dYdX stands ahead of the schedule for impending the launch of the v4 mainnet which is seen as the complete decentralization for dydx.
Polygon 2.0 begins the groundwork for decentralized governance
The Polygon Labs has also started to work on expansion focused on upgrading blockchain and all the other applications running on the Polygon network. Furthermore, it seems to democratize the entire upgrade process while attracting community participation. Recently the company has proposed revamping its governance mechanism for the forthcoming Polygon 2.0 roadmap to establish the multiple 2s on the network.
Coin Center and Blockchain Association slam ‘unworkable’ U.S. Senate DeFi bill
Alongside, the crypto industry advocacy bodies have also slammed the US Senate bill stating it as the confused approach for regulating the DeFi sector. As a result on July 20, 2023, Coin Center, fondly referred to as Crypto Think Tank and Crypto Advocacy group named “ The Blockchain Association” released separate statements, defining the legislation as “ unworkable”, “ messy”, and “ unconstitutional” for the DeFi regulation.
Chainlink launches cross-chain protocol bridging blockchain to TradFi
The popular development firm known for developing the chainlink protocol and its native token also went live with its cross-chain protocol with the aim to provide better interoperability between financial firms and blockchains ( both public and private). The Chief Product Officer of the company announced on July 17 that their cross-chain interoperability protocol has launched on Ethereum, Polygon, Arbitrum, Optimism, and Avalanche for early access.
DeFi liquidity protocol adds ConsenSys-developed zkEVM rollup Linea
While the popularity of the layer -2 scaling solutions which are based on ZK – proofs grows, the decentralized finance liquidity protocol has established support for Linea, a zkEVM. This developer-ready zkEVM rollup is said to be Ethereum – compatible allowing developers to reuse a lot of its existing infrastructure for creating multi–asset solutions. Presently, Linea is comprised of 100+ protocols, decentralized applications, and developer tools that make it the potential scaling tool in the Ethereum ecosystem.
Overview Of The DeFi Ecosystem
As stated by Cointelegraph Markets Pro the DeFi’ total market value witnessed a bullish surge almost after the three bearish weeks. Alongside, the reports from Trading View also indicate that DeFi’s top 100 tokens by market capitalization have experienced a bullish week with most of them trading in the green zone. The total value locked in the DeFi protocol was found to be below $50 Billion. These numbers and bullish periods are seen as the result of significant development by the centralized exchanges which are seen as a growth sign for the DeFi sector.
