Experts weigh in on the Ethereum vulnerabilities after Merge: Finance Redefined

cointelegraph.com:

Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you significant developments over the last week.

The past week in the DeFi ecosystem saw major developments centered around the Ethereum Merge.

Aave community proposed temporarily suspending Ether (ETH) lending before the Merge, citing the potential issue of high ETH utilization that may result in liquidations being hard or impossible and annual percentage yields (APYs) reaching negative figures. An industry expert shared his opinion on possible censorship vulnerabilities that the Ethereum network could eventually face in the wake of its transition to a proof-of-stake (PoS) blockchain.

Moving ahead of the Ethereum Merge developments, some other major events that made headlines include Babylon Finance’s eventual shutdown after months of trying to recover from the negative momentum caused by the Rari Fuse exploit. The United States Federal Bureau of Investigation (FBI) has issued a fresh warning for investors inDeFi platforms, which have been targeted with $1.6 billion in exploits in 2022.

The top-100 DeFi tokens recorded a bearish price action over the past week, with the majority of them trading in the red, barring a few tokens that have shown even double-digit growth.

The Ethereum network will be able to withstand censorship risks both in the short and long term, according to Ethereum community member and investor Ryan Berckmans.

The ban of Ethereum-based privacy tool Tornado Cash by United States authorities earlier this month left many wondering whether Ethereum transactions could also be at risk of censorship, especially after Ethereum’s imminent transition to a proof-of-stake system.

Continue