Welcome to Finance Redefined, your weekly source for the latest insights in decentralized finance (DeFi). In this newsletter, we aim to bring you the most significant developments from the past week in the world of DeFi.
Over the course of two weeks after the multiple pool exploits on Curve Finance, the DeFi protocol has reassured the victims of the hack that they are actively assessing each impacted user for reimbursement. The good news is that the exploiter has returned 73% of the stolen funds, bringing some relief to the affected individuals.
Just when it seemed like the DeFi ecosystem was moving beyond the Curve dilemma, another set of exploits emerged this past week. Zunami Protocol, a decentralized finance protocol, fell victim to an attack on its stablecoin pools, resulting in a net loss of over $2 million. These incidents serve as a reminder of the ongoing security challenges within the DeFi space.
Despite these setbacks, the week also witnessed some promising developments. ConsenSys, a leading blockchain technology company, successfully completed the public launch of its zero-knowledge Ethereum Virtual Machine (zkEVM), Linea. This launch saw over $26 million worth of Ether (ETH) bridged, indicating strong support and interest in this new scaling solution.
Related Post
In another positive turn of events, the Fantom-based decentralized exchange (DEX) SpiritSwap was rescued from its planned shutdown. Thanks to a community resolution, SpiritSwap will continue its operations by transferring the project to Power, another non-fungible token platform and DEX based on Fantom. Power has committed to deploying $200,000 worth of USD Coin (USDC) into the SpiritSwap treasury, ensuring its sustainability.
Let’s dive deeper into some of the key developments from the past week:
Curve Finance, one of the most popular DeFi protocols, has officially stated its intention to reimburse users impacted by the recent $62 million hack. The platform has made significant progress in recovering the funds, with approximately 79% successfully retrieved. The remaining funds will be assessed and distributed to the impacted users to ensure a fair and equitable resolution. The exploit, which occurred on July 30, exploited vulnerabilities within the release history of Curve Finance’s Vyper compiler.
Zunami Protocol, another DeFi protocol, confirmed that its stablecoin pools were attacked, resulting in an estimated loss of $2.1 million. The protocol has urged users not to buy any of its affected stablecoins and has initiated an investigation into the exploit. This incident highlights the importance of continuous security measures and the need for robust infrastructure within DeFi platforms.
ConsenSys has achieved a significant milestone with the completion of the public launch of its zkEVM Linea. This Ethereum scaling solution aims to provide lower transaction costs and higher throughput for DApps in the Ethereum ecosystem. With over 150 partners onboarded and more than $26 million in ETH bridged, Linea offers promising scalability options for developers and users of decentralized applications.
SpiritSwap’s near shutdown was averted through a community resolution. The DEX, facing difficulties with its treasury funds stuck on the troubled Multichain protocol, found a lifeline in Power, which agreed to take over the project. Power will contribute $200,000 worth of USDC to the SpiritSwap treasury, ensuring its continuation and preventing a disruption to users.
Despite some recent market turbulence, the total value locked in DeFi protocols experienced a bullish surge in the past week. However, a late Thursday dip reversed the gains, leaving most tokens trading in the red on the weekly charts. Nonetheless, the total value locked reached $49.8 billion, a significant milestone for the DeFi industry.
Thank you for reading our summary of this week’s most impactful DeFi developments. We will be back next Friday with more stories, insights, and education about this rapidly evolving space. Don’t forget to subscribe to our newsletter to stay up to date with the latest news in decentralized finance.
