Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) news – a newsletter designed to bring you significant developments over the past week.
Last week, the DeFi ecosystem saw two exploits, one after the other, resulting in the loss of millions of dollars. First, the cross-bridged token platform Nomad fell victim to what many considered a decentralized theft, which saw nearly $190 million drained from their wallets.
The Solana ecosystem fell victim to a widespread unknown attack that saw thousands of wallets drained of all funds. Besides a series of exploits, Nansen has admitted his negligence towards the DeFi market during the NFT boom.
The top 100 DeFi tokens have had mixed price action over the past week, with many seeing a downturn after bullish action over the past week.
The Nomad token bridge drained $190 million in funds in a security exploit
The Nomad token bridge appears to have experienced a security exploit that allowed hackers to systematically drain a significant portion of the bridge’s funds over a long series of transactions.
Almost all of the $190.7 million worth of crypto has been withdrawn from the bridge, with only $651.54 remaining in the wallet, according to DeFi tracking platform DefiLlama. However, Nomad then suggested to Cointelegraph that some of the funds had been withdrawn by “white hat friends” who withdrew them in an attempt to protect them.
Slope wallets blamed for Solana-based wallet attack
As the dust settles from yesterday’s Solana (SOL) ecosystem chaos, data is surfacing indicating that wallet provider Slope is largely responsible for the security exploit that stole crypto from thousands of Solana users.
Slope is a web3 wallet provider for the Solana layer-1 blockchain. Via the Solana Status Twitter account on Wednesday, the Solana Foundation pointed the finger at Slope, stating that “it appears that the affected addresses were at some point created, imported, or used in the Slope mobile wallet apps.”
Nansen admits neglecting DeFi plans during NFT craze
CEO and co-founder Alex Svanevik recently spoke about Nansen’s growth, noting that the company registered over 130 million addresses and grew 30% despite the crypto downturn. Svanevik attributed much of its success to the value of blockchain platforms, especially those based on Ethereum.
Cointelegraph reached out to Nansen’s Andrew Thurman to find out more about the company’s success. Thurman, a Simian psychometric enhancement technician, explained that after the non-fungible token (NFT) craze, they kind of neglected their DeFi plans.
Uniswap Foundation proposal draws mixed reactions over $74 million prize
The Uniswap Labs community has already started thinking about a new proposal that would form a US-based Uniswap foundation, but first it will cost $74 million.
The proposal has so far drawn mixed feedback from the community, with many praising the foundation’s plans to support and grow the Uniswap ecosystem, while others balked at its steep price tag.
DeFi market overview
Analytical data reveals that the total value locked in DeFi recorded an increase of almost $9 billion compared to last week, posting a value of $79.4 billion. Data from Cointelegraph Markets Pro and TradingView shows that the top 100 DeFi tokens by market capitalization had a mixed week, with several tokens trading in the red while a few others even recorded double-digit gains.
Yearn.finance (YFI) was the biggest gainer among the top 100, registering a 20% increase over the past week, followed by Lido DAO (LDO) with a 16% increase. Fantom (FTM) recorded a 10% price increase and PancakeSwap (CAKE) recorded an 8% increase on the weekly chart.
Thanks for reading our roundup of this week’s most impactful DeFi developments. Join us next Friday for more stories, ideas and education in this dynamically evolving space.