Finance redefined: UK government explores DeFi with focus on staking and lending

The majority of the top 100 DeFi tokens came out of a three-week bear phase and saw double-digit gains over the last week.

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Welcome to Finance Redefined, your weekly dose of key decentralized finance (DeFi) news, a newsletter designed to bring you some of the major developments of the past week.

Last week, the DeFi ecosystem was recognized by the UK government, as it sought public comment on taxation of the DeFi ecosystem, in particular staking and lending.

MakerDAO is looking to collaborate with traditional banks, which would take place after the proposal is approved by the community. Aave (AAVE) plans to launch a supersized stablecoin called GHO, subject to the approval of the community's Decentralized Autonomous Organization (DAO). The hacker who exploited Solana-based liquidity protocol Crema Finance on July 2 returned most of the funds, but was allowed to keep $1.6 million as a white bounty.

After nearly two weeks of bearish dominance, the top 100 DeFi tokens have finally started trading in the green. The majority of DeFi tokens saw double-digit weekly gains.

UK government seeks public input on DeFi taxation

The UK government is asking the public to comment on the taxation of crypto-asset lending and staking in the context of DeFi.

In particular, the government wants to collect information on the taxation of crypto-asset lending and staking. Her Majesty's Revenue and Customs (HMRC) call for evidence, published on Tuesday, outlined its intention to investigate whether the hassle and administrative costs can be reduced for taxpayers participating in the emerging industry, as well as whether the tax treatment could be more aligned with the fundamental economics of transactions.