DeFi sees its largest hack in 2023 as Euler loses $197M: Finance Redefined

by Jeremy

Welcome to Finance Redefined, your weekly dose of important decentralized finance (DeFi) insights — a e-newsletter crafted to carry you important developments over the past week.

The DeFi ecosystem was as soon as once more an exploiter’s paradise this previous week as lending protocol Euler Finance fell sufferer to a flash mortgage assault leading to a web lack of over $196 million — the most important hack of 2023 up to now.

Aside from the Euler Finance saga, USD Coin (USDC) depegging was probably the most important occasion dominating final week’s headlines. As a result of collapse of Silicon Valley Financial institution, buyers loaded their baggage with USDC, together with an exodus of funds from centralized exchanges (CEXs) and decentralized exchanges (DEXs).

MakerDAO launched an emergency proposal to extend its holdings of United States Treasury bonds by 150%, aiming to diversify its Dai (DAI) stablecoins’ collateral publicity.

MetaMask launched new options with enhanced management to keep away from privateness considerations. The brand new options enable customers to handle which servers can obtain their IP deal with.

The DeFi market had one other bullish week owing to the rising optimistic sentiment within the broader crypto market amid main financial institution runs in the US. Many of the high 100 DeFi tokens registered double-digit development final week, with many tokens touching new multi-month highs.

Euler Finance hacked for over $195M in flash mortgage assault

Ethereum-based noncustodial lending protocol Euler Finance confronted a flash mortgage assault on March 13. The attacker stole hundreds of thousands in DAI, USDC, staked Ether (StETH) and wrapped Bitcoin (WBTC).

In line with on-chain knowledge, as per the final replace, the exploiter carried out a number of transactions, stealing practically $197 million. The assault correlated with the deflation assault one month in the past. The attacker used a multichain bridge to switch the funds from the BNB Good Chain to Ethereum.

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Crypto customers turned to DEXs, loaded up on USDC after Silicon Valley Financial institution crash

Chainalysis knowledge reveals that hourly outflows from CEXs to DEXs spiked to over $300 million on March 11, quickly after a California regulator shut down SVB.

An analogous phenomenon occurred through the collapse of cryptocurrency alternate FTX final 12 months amid fears that the contagion may unfold to different crypto corporations. Nonetheless, knowledge from the blockchain analytics platform Token Terminal means that the surge in day by day buying and selling volumes for big DEXs was short-lived in each instances.

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MakerDAO passes proposal for $750M improve in US Treasury investments

Lending protocol and stablecoin issuer MakerDAO handed a proposal on March 16 to extend its portfolio holdings of U.S. Treasury bonds by 150%, from $500 million to $1.25 billion.

The proposal goals to extend the protocol’s publicity to real-world belongings and “high-quality bonds” following its DAI stablecoin shedding its $1 peg throughout market volatility on March 11. The $750 million debt ceiling hike was permitted by 77% of Maker’s delegates.

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MetaMask addresses privateness considerations with new options for enhanced management

Web3 pockets app MetaMask has launched a number of new options to boost privateness and provides customers extra management, in keeping with a March 14 weblog put up by the developer. The brand new options come after MetaMask was beforehand criticized for allegedly intruding on customers’ privateness.

Beforehand, MetaMask used its Infura RPC node to hook up with Ethereum routinely at any time when a person first arrange the pockets. Though the person may change the settings later, this nonetheless meant that the person’s public deal with was transmitted to Infura earlier than they may change their node, in keeping with a report from Ethereum node operator Chase Wright.

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DeFi market overview

Analytical knowledge reveals that DeFi’s complete market worth climbed to $48 billion this previous week. Knowledge from Cointelegraph Markets Professional and TradingView reveals that DeFi’s high 100 tokens by market capitalization had a bullish week, with a lot of the tokens buying and selling in inexperienced, barring just a few.

Thanks for studying our abstract of this week’s most impactful DeFi developments. Be part of us subsequent Friday for extra tales, insights and training on this dynamically advancing area.