Ethereum Project Launches MEV Blocker to Protect Users From High Prices: Finance Redefined
Welcome to Finance Redefined, your weekly dose of ultimate decentralized finance (DeFi) insights – a newsletter designed to provide you with key developments from the previous week. A total of 27 Ethereum projects are collaborating to reduce user fees in the form of the maximum extractable value. (MEV). Balancer, Gnosis DAO, Shapeshift and StakeDAO are some of the launch partners.
Rugpull is nothing new in the DeFi ecosystem, but in the first quarter of 2023, Binance’s BNB Chain accounted for 73.3% of all carpet pulls. According to a new assessment from the US Department of the Treasury, the DeFi ecosystem is becoming increasingly popular among North Korean hackers for money laundering. Following the uproar over its first attempt, the Arbitrum Foundation has offered some additional governance recommendations. The two new plans were then submitted to a public vote.
Regarding price activity, the top 100 DeFi tokens by market value had another mixed week, with little change in the total value locked in the DeFi protocol. Over 27 important Ethereum projects collaborated to build MEV Blocker, a solution aimed at addressing and minimizing the amount of value extracted from its users, also known as maximum extractable value, Ethereum’s invisible tax.
MEV is a transaction fee charged to DeFi customers. The MEV bot has the ability to hijack transactions in the middle of it, such as the $1,869 Ether exchange, nonfungible token (NFT) purchases, and Ethereum Name Service registrations, driving up the price for users.
According to an April 4 analysis from blockchain security startup Immunefi, BNB Chain is king of the rug pull in the first quarter of 2023, with nearly 73.3% of such fraud across the entire crypto ecosystem occurring on the network.
The analysis, titled “Crypto Losses in Q1 2023,” looks at the number of crypto thefts and scams that took place in the first quarter of this year. It found that Ethereum and BNB Chain were the two most popular targets for hackers and fraudsters, accounting for 68.8% of all losses on the two networks combined. BNB chains, for example, accounted for 41.3% of overall hacking and fraud losses.
A recent Ministry of Finance study on decentralized finance determined that perpetrators from the Democratic People’s Republic of Korea and other fraudsters could exploit weaknesses to aid in money laundering.
The U.S. Department of the Treasury stated in its April 6 report, “Illegal Financial Risk Assessment of Decentralized Finance,” that many groups involved in illicit activity from North Korea have benefited from some DeFi platforms’ non-compliance with certain Anti-Money Laundering (AML) and Funding regulatory countermeasures. Terrorism (CFT). According to research, inadequate AML/CFT controls and other flaws in DeFi services “enable theft of funds”.
