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Shapella Upgrade: Less Than 1% of Staked ETH to Be Sold

17. April 2023 /

Summary of Article

  • The Shapella upgrade on the Ethereum mainnet was successfully completed, allowing validators to withdraw their staked Ether after three years.
  • A hacker exploited an old Yearn.finance contract and was able to mint 1 quadrillion Yearn Tether and swap it for $11.6 million in stablecoins.
  • Glassnode predicts that less than 1% of the 18.1 million ETH staked on the Beacon Chain will be unlocked within the first week of the Shanghai hard fork being executed.

Shapella: Finance Redefined

The top 100 DeFi tokens surged along with the broader crypto market as the total value locked peaked at a new yearly high of over $54 billion. The past week in DeFi was filled with anticipation leading up to the Shapella upgrade on the Ethereum mainnet which was successfully completed on April 12, allowing validators to withdraw their staked Ether after three years. However, only 253 validators have signed up to fully exit their staked Ether position, with analytics firm Glassnode predicting that less than 1% of the staked ETH will be withdrawn.

Privacy Concerns

Amid all this rejoicing post-Shapella upgrade, an Ethereum researcher has revealed that staking Ether could become a privacy concern as he had “internally” discovered that when user stake ETH it shows their IP address information. This is sparking privacy concerns among users as well as developers in order to protect user data from being leaked or tracked by potential malicious actors.

Hacker Exploitation

A hacker managed to exploit an old Yearn finance contract and minted 1 quadrillion yearn tether (yUSDT) and then swapped them for other stablecoins worth 11.6 million dollars in total before they were frozen by Yearn due to security protocols in place. This incident highlights how important it is for DeFi projects such as Yearn Finance to keep upgrading its protocol against any kind of exploitation or else risk losing large amounts of investor money due to malicious activities online.

Financial Inclusion Through Fonbnk Partnership With Tanda

DeFi based financial inclusion serves to increase liquidity and earning opportunities for African micro-entrepreneurs through Fonbnk’s partnership with Tanda which provides access to yield farming opportunities such as Compound or MakerDAO along with credit score improvement initiatives for those who are underserved by traditional banking services due to lack of access or poor credit histories.

DeFi Tokens Surge Along With Broader Crypto Market

The top 100 DeFi tokens had another bullish week, thanks to a late surge in the crypto market after Ethereum’s much awaited update . Most DeFi tokens traded in green along with rest of market which is indicative that investors are taking advantage of Decentralized finance platforms more than ever before since valuations remain relative cheap compared other assets classes available out there .