Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) information – a newsletter designed to bring you the most important developments of the past week.
Several hacks, exploits, and rug thefts occurred in April resulting in a net loss of more than $100 million across various DeFi protocols.
Amid the growing memecoin frenzy, the possibilities for exploits have multiplied, with WallStreetBets, a popular sub-Reddit trading group, reportedly charging its users $635,000 just days after dropping around $15,000.
The DeFi Level Finance protocol fell victim to an exploit that resulted in the loss of nearly $1 million. The attacker manipulated a “multiple claim” bug in a Level Finance smart contract to steal more than 214,000 native Level Finance (LVL) tokens from the exchange.
The volume of liquid staking protocols has increased dramatically in recent weeks, outpacing decentralized exchanges (DEXs). From April 13 to May 1, Total Value Locked (TVL) on decentralized exchanges decreased by $1.66 billion, while it increased on liquid staking protocols by $280 million.
Liquid staking solutions now have more TVL than DEX: DefiLlama
Liquid staking solutions like Lido and Rocket Pool now have a higher total value locked than DEXs, making them the top category of DeFi protocols according to data from crypto analytics platform DefiLlama.
Liquid stake protocols just took the top spot. On April 13, $17.19 billion in cryptocurrency was locked up in liquid staking contracts, compared to $18.89 billion in DEXs, according to information on file. However, DEXs have seen a decrease of $1.66 billion to $17.2 billion, while liquid staking solutions have seen an increase of $280 million to $17.47 billion.
April Cryptocurrency Scams, Exploits, Hacks Drive $103M Loss: CertiK
Crypto exploits, exit scams, and quick loan attacks did not let up in April, with more than $103 million of funds stolen from crypto projects and investors. On April 30, crypto security and auditing firm CertiK released an April summary of crypto exploits, scams and hacks, revealing that total funds lost were $103.7 million, bringing total losses for the year to date. date to $429.7 million.
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The month was marred by major crypto exploits, with a loss of $25.4 million due to an exploit by multiple maximum withdrawable value trading bots on April 3, $22 million stolen in a hot wallet exploit on the Bitrue exchange, and the $13 million hack of South Korea’s GDAC exchange.
Level Finance confirms $1 million exploit due to buggy smart contract
Decentralized exchange Level Finance experienced a security breach that allowed an attacker to steal more than $1 million of the exchange’s native LVL token.
Level Finance informed its 20,000 Twitter followers that over 214,000 LVL tokens had been emptied and exchanged for 3,345 BNB
, with an approximate value of $1.01 million.
WallStreetBets mod drops $635,000 worth of memecoin in alleged rug pull
A moderator of the popular trading subreddit r/WallStreetBets has dumped a large chunk of WSB Coin (WSB), a token project claiming to be the official Wall Street Bets memecoin.
On May 2, WSB was launched by people involved in moderating the WallStreetBets Reddit forum. The subreddit gained notoriety for GameStop’s short squeeze, which brought hedge funds to their knees in January 2021. The creators of the WSB token claimed there would be no allocation for the team and 10% of the coins would be reserved for the subreddit. .
DeFi Market Overview
The total DeFi market value saw a small increase last week. Data from Cointelegraph Markets Pro and TradingView shows that the top 100 DeFi tokens by market capitalization had a mixed week, with most tokens trading in the red. The total value locked in DeFi protocols was just over $50 billion.