DeFi Bulletin: TVL Continues Decline, Curve Returns 70% of Stolen Funds

The decentralized finance (DeFi) sector remains a focal point for cryptocurrency investors. Recent significant events and news within the past weeks have been compiled by ForkLog in a digest.

Key Metrics of the DeFi Sector

The total value locked (TVL) in DeFi protocols has dropped to $41.94 billion. Lido takes the lead with $15.1 billion, while MakerDAO ($6 billion) and AAVE ($5 billion) secure the second and third spots respectively.

TVL in Ethereum applications has fallen to $24.55 billion. The trading volume on decentralized exchanges (DEX) in the last 30 days reached $47.7 billion.

Uniswap continues to dominate the non-custodial exchange market, accounting for 54.3% of the total trading volume. The second-largest DEX by trading volume is PancakeSwap (14.6%), followed by Curve (11.3%).

Curve lost $61.7 million due to a hack. DEX Returns 70% of Funds

On July 30, an unknown attacker targeted Curve Finance’s stablecoin pools using a vulnerability in the Vyper code. Initial losses from the breach were estimated at $47 million. According to Defi Llama, the amount increased to $61.7 million.

The incident affected projects like Alchemix, JPEG’d, MetronomeDAO, Ellipsis, and deBridge. Over 450 pools were compromised due to the existence of the vulnerability.

On August 4, the hacker partially returned funds by transferring assets worth over $20 million to JPEG’d and Alchemix. The perpetrator received a promised reward of 10% of the amount.

On August 6, Curve offered a reward of $1.85 million for identifying the hacker, aiming to bring them to justice. The project’s team announced the voluntary return period had ended and expressed readiness to drop legal action if full restitution of stolen assets was made.

On August 11, Curve reported returning 70% of the funds. The team is investigating the remaining 30% and is working on determining the portions for each affected user “for proper distribution.”

Cypher DEX Lost $1 Million in a Hack

An unknown individual hacked the Cypher decentralized exchange based on Solana, making off with approximately $1 million in cryptocurrencies.

The team froze the protocol’s smart contracts and initiated an investigation. The developers also extended an invitation to the hacker to discuss the possibility of returning the funds.

Experts consider Cypher one of the fastest-growing protocols in the Solana ecosystem, partially attributed to its loyalty program that rewards users with points. Some speculate this is a preparation for an airdrop.

Uniswap Integrates Coinbase-Backed L2 Network Base

The largest Ethereum exchange, Uniswap, has integrated the second-layer solution Base, backed by leading US cryptocurrency company Coinbase.

Base is built on the Optimism OP Stack software stack. Operating as an Ethereum rollup network, it aims to reduce transaction fees for participants within the Coinbase and DeFi ecosystem.

On August 9, Coinbase opened the Base mainnet for public access. The network’s TVL reached $153 million, surpassing StarkNet, which has been operational since 2021.

This Post Has One Comment

  1. DeFi

    The report reveals an alarming trend in the DeFi space. The decreasing TVL and the widespread security breaches, like the Curve hack, raise doubts about the maturity of the sector. The fact that funds were returned doesn’t negate the fact that such breaches are occurring in the first place. It’s a harsh reminder of the security challenges that DeFi projects need to address urgently.

Leave a Reply