Finance Redefined: DeFi protocols lost $1.6B, EU to rethink DeFi approach and more

cointelegraph.com:

The past week in the decentralized finance (DeFi) ecosystem saw many new developments from an adoption perspective and protocol developments. The European Commission added a new chapter on DeFi, showing the growing impact of the nascent ecosystem, while a county in the United States State of Virginia wants to put its pension fund in a DeFi yield.

DeFi exploits became the center of attention again as recent research shows that in the first two quarters of 2022, DeFi protocols have lost $1.6 billion to various exploits. Rari Fuze hacker, who got away with $80 million worth of funds, was offered a $10 million bounty.

The DeFi tokens also made a bullish comeback toward the end of the past week. However, the overall weekly performance remained in the red.

Analysts from the European Commission showed an unexpected understanding of how DeFi functions, having defined it as something different from the traditional financial system and acknowledging that it would require rethinking the approach to regulation.

On Monday, crypto venture adviser at Presight Capital and a long-term expert on European regulation Patrick Hansen shared some crucial details from the European Commission’s “European Financial Stability and Integration Review 2022.” The report, dated April 7, contains a 12-page chapter on DeFi, in which the authors demonstrate a sensible approach to the topic.

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The Northern Virginia county of Fairfax has already invested a part of its pension funds in crypto and blockchain startups. Now, it’s mulling over deeper involvement with the DeFi yield farming.

The Fairfax County Police Pension System’s chief investment officer Katherine Molnar said on Tuesday at the Milken Institute Global Conference that the system aims