DEFI

DeFi Weekly Report | FSC Anti-Money Laundering Draft, MEV Solution ArcherDAO, Alpaca Finance

share
DeFi Weekly Report | FSC Anti-Money Laundering Draft, MEV Solution ArcherDAO, Alpaca Finance

Dear DeFi enthusiasts,

The news of Ethereum hitting an all-time high price of around $3300 by the time of this writing is no longer news, but a daily occurrence... breaking historical highs for the sixth consecutive week. Additionally, Ethereum transaction fees are currently at their lowest in recent weeks!

Headlines this week include: How MEV solution ArcherDAO benefits arbitrageurs and miners together; Taiwan's Financial Supervisory Commission gathers eight virtual currency businesses to discuss what the anti-money laundering draft proposal entails; the underrated Alpaca Finance, with DeFi veterans saying DeFi summer has arrived on Binance Smart Chain; and 1inch launches an iOS version of its cryptocurrency wallet.

Advertisement - Continue scrolling for more content

Highlighted viewpoints for you this week: What is Yearn Finance founder Andre Cronje so excited about for October 15th this year? What advice does crypto promoter Blue Kirby have for DeFi farmers? And crypto data provider Messari's founder Ryan Selkis warns that the government's weapon against cryptocurrencies surprisingly isn't regulation...?

1. This Week's Highlights

โœจ Top Headlines of the Week

What Will the Anti-Money Laundering Proposal Discussed by Taiwan's FSC and Eight Virtual Currency Operators Entail?

The Financial Supervisory Commission (FSC) of Taiwan will convene a meeting on May 7 to discuss the draft regulations on "Prevention of Money Laundering for Virtual Currency Platforms." It is reported that the meeting will focus on the anti-money laundering regulations for Virtual Asset Service Providers (VASPs) as per the Financial Action Task Force (FATF) guidelines. Among the 18 draft clauses, the most crucial is Article 7, which resembles the Travel Rule: "When transferring virtual currency, the sender must record the recipient's information." This means that in the future, funds transferred from exchanges or wallets may only be sent to addresses with KYC.

MEV Solution ArcherDAO: How Arbitrageurs and Miners Benefit Together

ArcherDAO is a network protocol that allows arbitrageurs and miners to collaborate directly, optimizing their benefits and avoiding gas wastage for arbitrage. There are two roles in ArcherDAO:

  • Supplier: Identifies high-value transactions (opportunities for arbitrage) on-chain and sends them to miners via ArcherDAO for priority execution.

  • Miner: ArcherDAO prioritizes sending high-value transactions to miners participating in ArcherDAO. Miners who package these transactions can share the additional revenue from the transaction with the supplier.

Undervalued ALPACA, DeFi Researcher: DeFi Summer Is Here on BSC

"DeFi Summer is not coming, it's already here on BSC," said Joey Wong, a deep DeFi researcher and investor from Hong Kong on Twitter. She pointed out that if Total Value Locked (TVL) is a good indicator, ALPACA has more TVL than ALPHA on Ethereum's v1, v2, and BSC combined, yet its price remains only one-third of ALPHA's.

Decentralized Exchange Hashflow Releases Beta Version

Decentralized exchange Hashflow, connecting users with traditional market makers, has released its beta version and announced seed funding led by Dragonfly Capital and Electric Capital. Hashflow connects traders with top traditional market makers, allowing users to trade in a trustless manner while enabling traditional market makers to provide liquidity. Hashflow also features built-in order routing and protection against Miner Extractable Value (MEV) exploitation.

1inch Launches iOS Cryptocurrency Wallet, Passes Security Audit

On-chain aggregator 1inch announced the launch of its iOS cryptocurrency wallet (1inch Wallet), which has passed a security audit by Blue Frost Security. The wallet currently supports token trading and will introduce features such as staking, governance, and liquidity pools in the future.

๐Ÿš€ DeFi Protocols

๐Ÿ–ผ NFT

๐Ÿ› Exchanges, Regulations, Institutions

2. Insights from Industry Leaders

Yearn Finance Founder Andre Cronje: See you in Dubai on October 15. I've never been more excited.

Crypto Promoter Blue Kirby: If you're interested in Degen making and losing money...

Crypto Data Provider Messari Founder Ryan Selkis: People will soon realize that the government's biggest weapon against cryptocurrencies is not regulation...

3. Data Indicators

Data for this week is sourced from: DeFi Pulse as of May 3, 2021.

Overview of DeFi Market Data

Total Value Locked (TVL) represents the total market value of assets stored in DeFi platforms; Maker Dominance shows the market share of the current largest project by market value; and DeFi Pulse Index is a DeFi weighted index provided by SetProtocol.

Top Ten DeFi Projects by TVL

4. Weekly Coin Picks

This week, led by Ethereum (ETH), the cryptocurrency market has shown strong resilience, with ETH surpassing $3000 and leading DeFi tokens forward. Based on development and fundamentals, the coins we will pay special attention to this week are:

Ethereum (ETH): Ethereum's major issue of high Gas Fees is gradually being resolved, thanks to solutions like MEV and increasing adoption of Layer 2 solutions. People are starting to remember the decentralized finance platform with the most applications and best ecosystem. Andre Cronje once said that the most copied project is the best. Currently, major public chains like BSC, TRON, etc., are all copies of Ethereum, aren't they?

1inch (1INCH): Formerly the largest DEX aggregator on Ethereum, 1inch later developed its own liquidity pools, liquidity mining, and reorganized as the 1inch network. Now, it has launched its own iOS wallet. 1inch seems to be building its universe, and it might be too late to join if you don't act now.

Hashflow: This week, the newly emerged DEX, Hashflow, is worth watching. Compared to centralized exchanges or traditional finance, DeFi is still in its infancy. Traditional market makers and large off-chain funds are believed to be the next focus of DeFi's growth.

5. Weekly Memes