DeFi Hacks Decline as Interest Surges: An Overview of Recent Developments in Decentralized Finance
Summary:
This finance report examines the recent decrease in decentralized finance (DeFi) hacks, highlights the record number of active users on the Bitcoin layer-2 platform Stacks, and discusses the movements of stolen funds from the Hundred Finance exploit. The article also covers the discovery of a significant reentrancy vulnerability in the DeFi protocol Curve Finance by a security researcher, and ends with a summary of the current bearish behavior of the top 100 DeFi tokens.
Introducing Finance Redefined, a reliable source for your weekly dip into the world of decentralized finance (DeFi). This newsletter is carefully curated to keep you updated with the most impactful events of the past week. Even though DeFi is sometimes tied to hacks and fraudulent activities, data reveals a 67% drop in losses from such events, falling to $60 million in April; in stark contrast to March's $187 million. Hackers who targeted Hundred Finance have just initiated the movement of the stolen money, almost a year after the attack.
Turning to other matters, the Bitcoin layer-2 platform Stacks witnessed a spike in its active user count as interest in Bitcoin's DeFi, known as BTCFi, picked up pace. Despite signs of bearish behavior, the top 100 DeFi tokens ended the week with a strong bullish push. That said, the total value locked in DeFi protocols keeps hovering under $90 billion.
A deep dive into the sharp drop in DeFi related losses reveals that the total cryptocurrency value compromised via hacking fell by a staggering 67% in April, landing at $60.2 million. This considerable downturn in crypto attacks indicates the first remarkable reduction this year. The 67% reduction comes from the $187.6 million stolen in March, a figure much lower than February's startling $360.8 million, according to a report by on-chain safety firm PeckShield on May 1.
In the Bitcoin layer-2 platform realm, Stacks has recorded an unprecedented number of active users, fueled by the rising interest in Bitcoin's DeFi. April saw a new record with 122,497 active accounts. These statistics indicate a steady rise in interest in BTCFi, particularly after the 2024 Bitcoin halving and the introduction of Runes, a new protocol for issuing interchangeable tokens on the Bitcoin network.
In another development, the individual who stole $7.4 million from the DeFi protocol Hundred Finance has started relocating the stolen digital assets, a year since the exploit. On May 1, the hacker shifted Ether (ETH) and Tether (USDT) valued at roughly $800,000 from Curve’s decentralized exchange, having provided liquidity on the platform over a year ago. The money was transferred as ETH and other cryptos, increasing the looter's ETH balance by more than $1 million.
In other news, a security analyst was given a $250,000 reward for identifying a vulnerability that potentially could allow hackers to extract millions from cryptocurrency protocols. Marco Croc, an anonymous cybersecurity expert from Kupia Security, located a reentrancy flaw in the DeFi protocol Curve Finance. He revealed that the bug could be used to tamper with balances and remove funds from liquidity pools.
Finally, an overview of the DeFi market indicated that the top 100 tokens, by market capitalization, had a bearish week, with most showing red on the weekly graphs. Despite this, the total value locked in DeFi protocols remained under $90 billion.
Make sure to tune in next Friday for more riveting stories and details about this rapidly advancing industry.
Published At
5/3/2024 10:25:00 PM
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