The Enterprise Ethereum Alliance has issued a document which aims to mitigate risks associated with DeFi protocols. CryptoQuant CEO Ki Young Ju says the sell-off fears associated with Mt. Gox are still “overestimated.” Meanwhile, Marc Andreessen and Ben Horowitz, the co-founders of a16z have reportedly thrown their weight behind presidential candidate Donald Trump.
New risk assessment guidelines for DeFi protocols unveiled
The Enterprise Ethereum Alliance (EEA) has launched Version 1 of its decentralized finance (DeFi) Risk Assessment Guidelines, a document to identify and mitigate DeFi protocol risks.
The EEA’s DRAMA Working Group developed the guidelines, collaborating with organizations such as Consensys, Hacken, CertiK, Quantstamp, OpenZeppelin, Banco Santander, Bitwave, and others.
The document serves as a resource for DeFi protocol regulators, developers, investors and users for risk identification and the provision of strategies to manage them.
Dyma Budorin, co-chair of EEA DRAMA and CEO of Hacken, explained that the guidelines offer a comprehensive standard that “resource founders and dev teams can rely on while working on their products.”
The DeFi Risk Assessment Guidelines cover a range of risks relating to governance, tokenomics, software, liquidity, regulatory compliance, and external market factors.
Speaking with Cointelegraph, Chaals Nevile, Director of technical programs at EEA, explained that “the Working Group proposes to maintain the Guidelines, publishing periodic updates as necessary.”
“This is specifically intended to respond to new threats and changes in technology, but also to deal with the fact that the standards and regulatory landscape continues to evolve.”
The attack on the Li.Fi protocol on July 16 is an example of the necessity of DeFi risk assessment and preventative measures that can be taken in the space.
Bitcoin whales set to stack more amid “overestimated” Mt. Gox FUD
The impact of Mt. Gox’s repayments on Bitcoin is being overestimated and will likely be utilized by whales to pick up more BTC at a discount, says CryptoQuant CEO Ki Young Ju.
In a July 16 post to X, Ki said that the impact of Mt. Gox sales — anywhere between $3 billion and $9 billion in BTC — is negligible compared to the total increase in the market capitalization of Bitcoin over the last 18 months.
“Even if Mt. Gox’s $3B is sold on Kraken, it’s just 1% of the realized cap increase in this bull cycle — manageable liquidity,” wrote Ju.
Additionally, Ki noted that the price of Bitcoin was most vulnerable to speculative “FUD” — fear, uncertainty, and doubt — around perceived negative events and less so to the fundamental selling activity behind it.
Ju said that while many investors were “panic selling”, the “smart money” will be continually buying more Bitcoin.
a16z co-founders back Trump following VP nomination
Marc Andreessen and Ben Horowitz, the co-founders of crypto venture firm a16z, have reportedly thrown their weight—and financial resources—behind Donald Trump.
Reports indicate that the venture capitalists plan to make large donations to the Republican ticket after Trump selected J.D. Vance as his running mate. Andreessen and Horowitz are said to be among several venture capitalists and technology executives committed to donating to the pro-Trump America PAC. So far, America PAC has raised nearly $9 million from Silicon Valley insiders.
According to industry advocacy group Stand With Crypto, Vance “strongly supports crypto.” The Republican senator from Ohio is said to own up to $250,000 in Bitcoin.
Additional reporting by Felix Ng, Sam Bourgi and Geraint Price.
