DeFi Insight | FTX Is Why We Need More DeFi, Not Less

November 16, 2022

Today’s DeFi data&news Brought to you by DeFi Insight

“FTX isn’t DeFi

If anything, the FTX catastrophe represents a failure of the centralized finance mechanisms that DeFi has been working so hard to replace.

Consider where the troubled roots of the FTX catastrophe ultimately stemmed from — FTX lent out customer deposits, rather than holding them as redeemable 1:1 deposits. To make things worse, they over-leveraged their balance sheets by holding a disproportionately large amount of its own illiquid FTT token as collateral, instead of safer assets like stablecoins. In short, FTX tried to play the role of a bank where it wasn’t supposed to, and it played that role poorly.

Neither of the above would be possible for a DeFi exchange or bank.” @Source

| DEX/CEX/AMM

▪ Six Commitments for Healthy Centralized Exchanges

▪ According to @cryptoquant_com, over the past week, crypto balances on CEXs have sunk to their lowest level since November 2018

▪ SBF: Alameda has more assets than liabilities, and FTX US assets are enough to cover the repayment of all users

▪ Sam Bankman-Fried Facing Possible Trip to US for Questioning

▪ FTX creditors may number over 1 million as regulators seek answers

▪ Ripple and Binance seek UK regulatory licenses, lawmakers are told

▪ 22–316MR ASIC suspends FTX Australia’s AFS licence

▪ Founder of The Block: Sold the company in 2021, and did not participate in the business during the rise of FTX

▪ Coinbase CEO Brian Armstrong sells more than $1.6 million in shares

| LAYER1

▪ The Fantom Foundation will launch a grant program through the Grants Protocol, Gitcoin’s new grant protocol, and applications are currently open

▪ Web3 Gaming with Aptos x NPIXEL

| STABLECOIN

▪ Circle Reveals FTX Exposure, Says USDC Conversions on Binance Have Hurt Projections

| LENDING/CDP

▪ Crypto lender Salt halts withdrawals citing FTX impact

| POLICY&REGULATION

▪ FTX Fallout Adds Urgency to South Korea’s Push for Crypto Regulations: Report

| GAMEFI

▪ Crypto KOL ZachXBT: Chain Game SolChicks Developer Fails to Disclose $20M Funds Lost by UST Thunder to Community

| WALLET

▪ Crypto Cold Wallets in Ledger, Trezor Sales Moon After FTX Collapse

| NFT

▪ LVMH official website homepage displays the poster of RTFKT and RIMOWA cooperation

▪ Brevan Howard Digital co-leads $4.8 million round for NFT fraud detection startup Yakoa

▪ Yuga Labs Kicks-Off First of Its Kind NFT Museum Donation Initiative, Gifts CryptoPunk to the Institute of Contemporary Art, Miami

▪ Ronaldo announces that his NFT series will be available exclusively on Binance on November 18

▪ Layer by Layer: Canto Sees Growth but Also Centralization _theblockresearch

• Kava Network’s unique Co-Chain architecture provides the network with the speed and flexibility of Ethereum smart contracts and the interoperability of the Cosmos SDK framework.
• Although the Kava Network’s TVL significantly decreased since its all-time-highs during the bull market, the Kava Network’s current DeFi market share has increased since the beginning of 2022. This shows the growing strength of the Kava Network relative to the rest of DeFi.
• The introduction of the Multichain bridge and other potential bridge integrations in the future will allow easier access to the Kava ecosystem, which is expected to attract more users and liquidity to the Kava ecosystem.

▪ FTX Saga: Key Events and Live Updates _messari

▪ FTX’s Lack of Balance Sheet _messari

▪ On the User Experience of Cross-Chain Bridges _theblockresearch

▪ Rapid Insights: An Initial Look at The Fallout from FTX’s Collapse _theblockresearch

▪ November Analyst Call | FTX & Alameda Part 2 _theblockresearch

▪ Improving Capital Efficiency of Staking _theblockresearch

▪ Kava Network: DeFi for All _messari

▪ Design Matters: The Case for Fee Markets in Decentralized Service Networks _messari

▪ The ZK Everything Report _messari

▪ Digital Asset Bi-Weekly Digest _coinshares