DeFi suffered its biggest attack of the year, with a quick loan attack on crypto-credit platform Euler Finance by the same hackers who allegedly used the BSC-based protocol in February.
Welcome to Finance Redefined, your essential weekly insight into decentralized finance (DeFi) – a curated newsletter designed to bring you the highlights of the past week.
The DeFi ecosystem was once again a developer’s paradise last week, as lending protocol Euler Finance fell victim to a quick-lending attack that caused more than $196 million in net losses — the biggest hack of 2023.
In addition to the legend of Euler Finance, the USD coin
Central Bank of the United States
The split was the most important event dominating the headlines last week. Investors are dumping USDC, as well as centralized exchanges (CEX) and decentralized exchanges (DEX) due to the collapse of Silicon Valley Bank.
MakerDAO urgently proposes to increase its holdings of US Treasuries by 150% in order to diversify Dai.
Stocks are falling
Collateral exposure to stablecoins.
MetaMask introduces new features with enhanced controls to avoid privacy issues. The new feature allows users to control which servers can access their IP addresses.
The DeFi market is in for another bullish week amid growing positive sentiment in the broader cryptocurrency market amid a key US banking outlook. Most of the top 100 DeFi tokens posted double-digit gains last week, with many touching multi-month highs.
Euler Finance Hacked Over $195 Million in Flash Loan Attack
Euler Finance, an Ethereum-based non-custodial lending protocol, was hit with a quick loan attack on March 13. The attackers stole millions of dollars in DAI, USDC, staked ether (StETH) and wrapped bitcoin (WBTC).
According to on-chain data, according to the latest update, the exploiter carried out multiple transactions and stole almost $197 million. The attack was linked to a deflationary attack a month earlier. The attacker used a multi-chain bridge to transfer funds from the BNB Smart Chain to Ethereum.
Crypto Users Move to DEXs, Switch to USDC After Silicon Valley Bank Crash
Hourly outflows from CEX to DEX surged to $300 million on March 11, shortly after California regulators shut down SVB, according to Chainalysis data.
A similar phenomenon occurred during the collapse of cryptocurrency exchange FTX last year, and there are fears that the contagion could spread to other cryptocurrency companies. However, data from Token Terminal, a blockchain analytics platform, suggests that in both cases, the increase in daily transaction volume on major DEXs was short-lived.
MakerDAO Receives Proposal to Increase US Treasury Investment by $750 Million
Lending protocol and stablecoin issuer MakerDAO accepted a proposal on March 16 to increase its portfolio of US Treasury securities by 150%, from $500 million to $1.25 billion.
The proposal aims to increase the protocol’s exposure to real-world assets and “high-quality bonds” after its DAI stablecoin lost a $1 peg in market volatility on March 11. A $750 million debt ceiling increase was approved by 77% of Maker delegates.
MetaMask addresses privacy concerns with new features that increase control
Web3 wallet app MetaMask has introduced several new features to improve privacy and give users more control, according to a developer blog post on March 14. The new features come after MetaMask was previously criticized for violating user privacy.
Previously, MetaMask used its Infura RPC node to automatically connect to Ethereum when a user first set up a wallet. According to a report by ethereum node operator Chase Wright, while users can change settings later, this still means that users’ public addresses are passed to Infura before they change nodes.
DeFi Market Overview
Analysis data shows that the total market capitalization of DeFi increased to $48 billion last week. Data from Cointelegraph Markets Pro and TradingView show that the top 100 DeFi tokens by market capitalization are bullish this week, with most of them trading in the green except for a few.