Blockchain analysis firm Chainalysis, which was recently valued at £3.6 billion, has added advanced investigation and compliance support for six widely-used ERC-20 tokens.
Of these tokens, five belong specifically to decentralised finance (DeFi) protocols, while the remaining ‘renBTC’ is designed to allow for the permissionless transfer of Bitcoin to and from Ethereum for use in DeFi applications.
Collectively during Q2 2021, the six tokens had a combined trading volume of $155bn (£111.5bn), accounting for 1.4% of all virtual currency trading.
The six new crypto tokens to receive Chainalysis support include:
- AAVE: The governance token of Aave, a decentralised lending protocol which allows users to borrow assets and earn interest on deposits.
- CRV: The governance token of Curve Finance, a decentralised exchange (DEX) optimised for efficient stable coin trading.
- renBTC: An ERC-20 token pegged to the price of Bitcoin. Through a bridge between the two blockchains, it allows the permissionless transfer of BTC to and from Ethereum for use in decentralised applications.
- UNI: The governance token of Uniswap, a decentralised exchange calling itself the biggest operational DEX.
- SUSHI: The governance token of SushiSwap, a decentralised exchange. SushiSwap began as a fork of Uniswap.
- YFI: The governance token of yearn.finance, a decentralised asset management platform. It offers yield farming strategies that aim to automatically maximise users’ yield, as well as other services including liquidity provision, lending and insurance.
Increased support for DeFi protocols from major players in the crytpo industry seems poised to continue based on its recent growth in usage.
As Chainalysis points out, DeFi protocols have gone from being worth under $2bn (£1.44bn) last year July 2020 to now consistently sitting above $60bn (£43.2bn) in total value.
The analysis firm sees DeFi as a major innovation in financial services [that] has the potential to become hugely impactful as it becomes more mainstream.
A spokesperson for the firm said: “For DeFi protocols to be both well-governed and decentralised, trust and transparency are vital. That’s why we believe that blockchain analysis will be key to the success of DeFi.”
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