• The top 100 DeFi tokens had a mixed week, with most of them trading in narrow range before surging on July 13.
• Ethereum scaling protocols are dominating the usage of ZK-rollups with major launches and new research.
• Algorand’s decentralized lending protocol ‘Algofi’ is set to wind down by year-end.
Ethereum Scaling Protocols Drive Zero-Knowledge Proof Use
Zero-knowledge rollups (ZK-rollups) technology has gained a lot of traction over the past year thanks to its increased use in the Ethereum ecosystem. Ethereum scaling protocols dominate the use of ZK-rollups, with major launches, new research and healthy competition among the key highlights in a sector report published by ZKValidator. The node infrastructure operator’s “State of ZK Q2” report reflects on significant events across the ZK ecosystem, with notable launches of ZK-powered layer 2’s highlighting the use of the technology for scaling in comparison with other market segments.
Bug Bounties Have Mixed Results
Bug bounties are seen as a great reward system for white hat hackers to weed out bugs in the DeFi ecosystem, which often fall prey to exploits. However, recent analysis suggests these programs have mixed results. After a series of exploits on the Multichain protocol over the past couple of weeks,the founder of Connext proposed a “Sovereign Bridged Token” standard to prevent future issues and exploits.
Top 100 DeFi Tokens Had A Mixed Week
The top 100 DeFi tokens had another mixed week in terms of price action followed by a late surge on July 13th aided by partial verdict for Ripple in its fight against United States Securities and Exchange Commission (SEC), leading to an 84% surge in XRP price .
Algorand Decentralized Lending Protocol To Shut Down By End Of Year
Algorand’s decentralized lending protocol ‘Algofi’ is set to wind down by year end as developers claimed building a borrowing and lending protocol is “no longer viable path” for this protocol .
Conclusion
This week we saw that Ethereum scaling protocols continue driving zero knowledge proof use while bug bounties have shown mixed results so far . We also witnessed that top 100 DeFi tokens had another volatile week followed by ripple’s partial win against SEC causing surge in XRP price . Finally , Algorand’s decentralized lending protocol ‘Algofi’ will be shutting down soon due to non viability .