Welcome to the latest edition of Cointelegraph’s decentralized financial newsletter.
Despite the fact that markets may be down and technical indicators built on AWS performing poorly, fear not, the fundamental news and the spirit of Wagmi is abundant as ever. So, read on and find out everything you need to know about this week’s biggest events.
What you are about to read is a shorter, more succinct version of the newsletter. For a full rundown on the evolution of DeFi over the past week, subscribe below.
AWS outage highlights the need for truly decentralized exchanges
A drop in Amazon’s web service this week produced significant cascading effects on the global supply chain and delivery industry, as well as long hours of operational disruptions for the decentralized exchange dYdX and the major centralized exchanges Binance.US and Coinbase. .
AWS is the world’s largest cloud service infrastructure, offering a variety of services, including network servers, storage capabilities, remote computing, and mobile development, to name a few.
According to data released this year by Synergy Research Group, the tech titan has a 33% share of the cloud infrastructure market, followed by Microsoft and Google with 20% and 10%, respectively.
Details about the incident were largely undisclosed; however, it was noted on the company’s service health page that “multiple AWS APIs in US-EAST Region-1,” located in Northern Virginia, were experiencing connectivity issues.
In a statement shared on Twitter on December 7, and in the early hours of December 8, dYdX spoke about improved latency across the network, as well as loading failures on websites, before revealing its excessive reliance on centralized servers, one of which is AWS.
Unfortunately, there are still some parts of the exchange that rely on centralized services (AWS in this case). We are deeply committed to fully decentralizing and this remains one of our top priorities as we continue to iterate on the protocol. We apologize for this outage.
– dYdX (@dydxprotocol) December 8, 2021
Unfortunately, there are still some parts of the exchange that rely on centralized services (AWS in this case). We are deeply committed to full decentralization and this remains one of our top priorities as we continue to repeat the protocol. We apologize for this interruption.
DappRadar analysis data reveals that dYdX is the thirteenth largest decentralized financial application built on the Ethereum network, recording approximately $ 1.5 billion in daily trading volume. In September of this year, dYdX achieved a historic transactional milestone by surpassing Coinbase’s volume over the course of a single day, at $ 4.3 billion compared to $ 3.7 billion.
Decentralization is understood by many early crypto adopters as a core component of the industry architecture.. Security, scalability, and decentralization make up the so-called blockchain trilemma, a concept coined by Ethereum co-founder Vitalik Buterin to denote the need to sacrifice one side of the triad to experience the benefits of the other two.
In the world of cryptocurrency exchanges, many choose to prioritize security and scalability over mass adoption, but therefore operate with largely centralized Web 2.0-like structures.
Joseph Delong concludes his time as CTO of SushiSwap
SushiSwap CTO Joseph Delong announced his immediate departure from the decentralized exchange this week, pledging to honorably pass the proverbial ribbon to the next leader, along with the necessary accounting and informational data.
Delong explained the reasoning behind his decision in a thread Sincere Twitter post, citing internal conflicts and a lack of unified vision for the project, stating:
“I wish Sushi the best and it saddens me that Sushi is in such danger inside and out. The chaos that is occurring now is unlikely to result in a resolution that leaves DAO much more in a shadow than it was before without radical structural transformation. “
Delong has experience working in the Web 3.0 space as a blockchain engineer and developer. Previously employed as a Senior Software Engineer at ConsenSys, Delong took over as CTO at SushiSwap in early 2021 following the infamous Chef Nomi exodus in the previous months.
During the past year, Delong guided SushiSwap to the 12th position in total nominal value blocked (TVL) with USD 2.85 billion, but also suffered obstacles with the strict acceptance of the white list in the Optimism layer two protocol, as well as an on-chain exploit of supply of $ 3 million on the MISO launch pad, and more recently, a vulnerability in its smart contracts worth $ 1 billion is rumored.
Coinbase Opens Crypto Library to Promote Innovation
One of the major cryptocurrency exchanges, Coinbase, announced this week the launch of an open source library themed platform, titled Kryptology, designed to provide developers with a set of “secure, audited and secure application program interfaces (APIs)”. easy to use”.
In an official blog post, Coinbase outlined its intentions for the library in promoting the continued development of this long-standing technology:
“While our primary goal is to enable further innovation, we also aspire for Kryptology to raise the bar for what is considered a robust and usable crypto library.”
The data reveals that the total locked value of DeFi has decreased by 11.3% during the week to a figure of $ 143.95 billion.
Data from Cointelegraph Markets Pro and TradingView reveals DeFi’s top 100 tokens by market capitalization above bearish over the past seven days.
Terra (LUNA) was the only top 100 winner this week with a mere 1.81%. It’s not the most memorable technical week for DeFi, let’s put it that way, but it’s not surprising considering the broader context of the crypto market pullback.
Thanks for reading our roundup of this week’s most impactful DeFi developments. Join us again next Friday for more stories, insights, and education in this ever-changing space.