Finance Redefined: Polygon Corrects $ 24 Billion Error and Hoskinson Bullish on Cardano for 2022, Dec 24-31

Welcome to the latest edition of Cointelegraph’s decentralized finance newsletter.

As the calendar year draws to a close, likeable Cardano leader Charles Hoskinson shares a message of optimism, unity and collaboration for the future of cryptocurrencies.

As a gesture of goodwill for the holidays, this week our long form DeFi newsletter will be published in full here as an article alongside regular email. Subscribe below to access next week’s edition.

Polygon solves a vulnerability that would have resulted in millions of dollars in losses

Layer two protocol Polygon announced this week that it was rectifying a potentially multi-million dollar vulnerability in its test-stakes Genesis contract by implementing an emergency mainnet update.

The incident and the subsequent update took place in early December. If a malicious entity compromised it to the maximum, the vulnerability could have resulted in almost $ 24 billion in financial losses, which is equivalent to 92.7% of the native tokens of the MATIC network and would effectively cause its imminent demise.

According to a recent Polygon blog post, two goodwill white hat hackers, Leon Spacewalker and Whitehat2, discovered the vulnerability on December 3 and 4, respectively, alerting blockchain security platform Immunefi.

Following Immunefi’s procedural investigation and authentication, the information was passed on to Polygon, which updated the network on December 5, although a hacker managed to drain 801,601 MATIC ($ 2.04 million) before the bug was patched.

Polygon co-founder Jaynti Kanani emphasized the network’s ability to quickly resolve the critical failure, noting in a entry from the blog that:

“The important thing is that this was a test of the resilience of our network, as well as our ability to act decisively under pressure. Considering how much was at stake, I think our team made the best possible decisions given the circumstances”.

Leon Spacewalker will be awarded $ 2.2 million in stablecoins for his efforts, while the second anonymous hacker, Whitehat2, will pocket $ 1.27 million in MATIC tokens directly from the Polygon team.

Cardano founder Charles Hoskinson predicts a great extinction “of DeFi

This week on YouTube live titled “DApps and Cardano DeFi Alliance”, Cardano founder Charles Hoskinson spoke candidly about the emerging landscape of DeFi projects and creators at Cardano, as well as advising participants on the volatile nature of exponential markets.

“It is very difficult to do this type of engineering and to do it well, with the vision and foresight of the future. Unfortunately, many of the projects in this space will not stand the test of time. It is a fact that we will see a great extinction in the next five or ten years. “

Broadcasting with evident enthusiasm from “warm sunny Colorado,” a place he humorously describes as “always warm, always sunny, sometimes Colorado,” Hoskinson predicted a great year ahead for the crypto space and his beloved Cardano.

The “only thing holding us back is us,” he said before exclaiming that empathic and friendly collaboration is a critical component for productive dialogue and progress toward our shared quest for a more prosperous financial future.

Following the successful launch of Cardano’s smart contracts in September via the Alonzo hard fork, the project has come under scrutiny for tedious roadmap developments. Despite this, Hoskinson believes that the user count will exceed 10 times the current 2 million in 2022 due to high demand within the non-fungible token space.

Additionally, Hoskinson introduced the Cardano DeFi Alliance, an initiative that aims to build an open source library of resources, tools, services, and best practices to nurture the growth of the entire DeFi ecosystem.

Huobi Research Predicts Higher Growth in Play-to-Earn Games in 2022

Huobi Research, the research affiliate of crypto exchange Huobi, has identified GameFi, which refers to the mix of decentralized gaming and finance, as an emerging trend based on its quantitative analysis of on-chain data.

In a lengthy blog post, Huobi detailed the sharp rise in GameFi projects in user activity and transaction volume since June, stating that “DApps rankings show that five of the top nine apps are by GameFi. ” Furthermore, “in early December [2021], GameFi’s weekly active users have reached 9.21 million, a record high. “

The researchers observed that these games differ from traditional games such as World of Warcraft in three distinctive categories: free trade in game materials, free trade and pricing of in-game currencies, and protection of property rights.

Huobi Research argues that GameFi’s ability to “significantly lower transaction fees for gold farming,” a term used to denote the conversion of in-game tokens to real-world currency, is the main reason for its greater appeal. financial:

“At GameFi, owners have the right to decide whether or not to sell certain resources, which increases the degree of independence of users and stimulates competition in the market, thus saving transaction costs.”

In addition, developers in the GameFi space have the advantage of deploying private property rights through non-fungible tokens at a lower cost: “This is not only a comparative advantage that traditional game developers never had, but also reflects the intrinsic value of blockchain technology in the gaming industry, “stated the firm.

Performance of the tokens

Analytical data reveals that the total locked value of DeFi has decreased 1.8% during the week, to $ 140 billion, which appears to put a brake on the holiday season.

Data of Cointelegraph Markets Pro and TradingView reveal that the top 100 DeFi tokens by market capitalization have been primarily bullish in the last seven days.

SushiSwap (SUSHI) led this week with gains of 42%. Oasis Network (ROSE) flourished 37.5%, while Fantom (FTM) grew 26.1%. Gnosis (GNO) and PancakeSwap (CAKE) they ranked fourth and fifth this week, with 25.4% and 3%, respectively.

Thanks for reading our roundup of this week’s most powerful news from DeFi. Join us again next Friday for more stories, knowledge and education in this dynamically advancing space. Happy New Year.

We wish to give thanks to the author of this write-up for this amazing material

Finance Redefined: Polygon Corrects $ 24 Billion Error and Hoskinson Bullish on Cardano for 2022, Dec 24-31

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