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Welcome to the latest issue of Cointelegraph’s decentralized financial newsletter.
As the market tries to recover from last week’s setback, decentralized finance (DeFi) has once again become a topic of discussion in the high-profile office of the US government. Read on to learn more about this news and more information from the world of decentralized finance.
What you are about to read is a smaller version of this newsletter designed for brevity. For the full version of DeFi development last week, please send your email below.
Senator Warren warns of the so-called DeFi danger
senator Elizabeth Warren publicly reviews decentralized finance At the Senate Banking Committee hearing this week.
When talking about the topic of “Stablecoins: How do they work, how they are used, and what their risks are”, Warren and financial affairs supervisor Alexis Goldstein (Alexis Goldstein) discussed the complexity of stablecoin transactions. Sex talked, including Tether (USDT) And U.S. dollar coins (USDC) And whether the former has real one-to-one dollar support.
After that, the former Democratic presidential candidate questioned Hillary Allen, a professor at the American University Washington School of Law, about whether the operation of stablecoins might endanger the country’s financial system.
In response, Allen believes that the operation of stablecoins, in which asset speculators sell in large quantities, is similar to what has been witnessed in money market mutual funds and foreign exchange markets, and therefore may have a wide-ranging impact on the DeFi ecosystem.
Finally, Warren stated that “DeFi is the most dangerous part of the crypto world,” adding:
“I think DeFi cannot grow without stablecoins. I think it will struggle. At present, I think DeFi has been contained to the extent that it will not affect financial stability, but if it grows, I think there is a real threat there, especially If it is intertwined with our traditional financial system.”
Warren commented that the cryptocurrency sector’s record follows a consistent and predictable pattern that largely implies illegal activities in the market, while advocating strong consumer safety under sparse supervision.
In June of this year, she spoke dramatically of the emergence of central bank digital currencies (CBDC), noting that cryptocurrencies “create opportunities to defraud investors, assist criminals, and exacerbate the climate crisis.” The positive solution may be centralization, federalism Government-backed digital dollar.
Around the same time as the hearing, Warren became embroiled in a dispute with tech giant Elon Musk, accusing the maverick CEO of “loading” the public for free after reports about the country’s highest income earners pay taxes. The two exchanged verbal insults back and forth in various media, include Twitter.
Please do not call the manager, Senator Karen
-Elon Musk (@elonmusk) December 14, 2021
related: Elizabeth Warren compares “false” encryption with “legal” CBDC in a Senate hearing
$33.5 billion trapped in the Ethereum beacon chain contract
An ethereum Beacon Chain Pledge Contract Contains 8,641,954 Ether (Ethereum), equivalent to 33.5 billion U.S. dollars, was found to be inaccessible without a hard fork this week. The details of the incident have not yet been finalized.
The beacon chain is the initial development of the transition from Ethereum to the proof-of-stake mining consensus. One of the prerequisites for becoming an Ethereum 2.0 validator is to pledge at least 32 ETH in the contract. Therefore, there is a short-term situation where a large amount of funds are stored in the contract and cannot be used or transferred out.
Once the merger of the beacon chain and the Ethereum mainnet is completed, the transition to Eth2 will be completed.After this, it is expected that the details of the hard fork will be drafted to create a solution to the currently dormant problem contract.
related: As ETH fell to the $4,000 level, small Ethereum investors increased their exposure
New research finds that 83% of millennial millionaires own cryptocurrency
A survey reported by the US news broadcaster CNBC revealed fascinating insights into the financial portfolios of millennial millionaires, and concluded that the vast majority of people have invested in the emerging cryptocurrency market and hope to be able to Continue to do so for the foreseeable future.
The survey, conducted by Spectrem Group, conducted a poll of investors with assets of more than $1 million, and found that 83% of them had made crypto investments in their lifetime, and 53% of respondents held their investments in the digital asset market 50% or more of the combination.
George Walper, President of Spectrem Group, pointed out that traditional organizations are basically unaware of millennials’ interest in the digital economy. He said:
“I’m not sure if the wealth management industry has realized that they need to treat these people as completely different generations. Most companies want to ignore it. But millennial millionaires will not just grow up from encryption.”
related: Cryptocurrency can save millennials from a failed economy
Token show
Analysis data shows that the total value of DeFi locked down by 13.51% within a week to 122.89 billion U.S. dollars.
Data from Cointelegraph Markets Pro TradingView shows that the top 100 DeFi tokens by market capitalization are mostly bearish The last 7 days.
Yearning for financeYFI) Increased by 33.56%. Avalanche (AVAX) Rose 22.03%, while Curve DAO token (CRV) rose 11%. Pancake exchange (cake) And Oasis Network (ROSE) ranked fourth and fifth with 8.48% and 5.6% respectively this week.
Interviews, close-ups and other cool stuff
Thank you for reading our summary of the most influential DeFi development this week. Join us again next Friday to gain more stories, insights and education in this dynamic development space.
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