Weekly Update - DeFi and Layer 1 & Layer 2 News (Week 40, 5/10/2022 - 11/10/2022)
BNB Chain temporarily halted after suffering a $566 million exploit. Solana-based DeFi protocol Mango was hacked for $100+ million. MakerDAO passed the plan to invest $500 million in U.S. government.
Weekly DeFi Index
This week's market cap, volume, and volatility indices were negative at -5.15%, -15.19%, and -46.28%, respectively.
Check the latest prices on Crypto.com/Price
DeFi Index Tokens
*DeFI index tokens: AAVE, BAL, CAKE, COMP, CRV, CVX, FXS, JOE, LDO, LINK, MKR, OSMO, REN, SNX, SPELL, SUSHI, UNI, VVS, YFI.
News Highlight
BNB Chain suffered a US$566 million exploit last Thursday. A hacker tricked the BSC Token Hub, a cross-chain bridge protocol, into sending two million BNB. BNB Chain halted the network temporarily in response to the attack. However, the attacker still managed to drain around $110 million of crypto using a novel approach, syphoning the funds across other networks. Under half of the stolen funds were deposited to a lending protocol on BNB Chain and borrowed centralised stablecoins, including USDT, USDC, and BUSD. The suspension of the BNB Chain network also led to the argument on its decentralisation.
Mango, a decentralised spot margin, perpetual futures, borrowing, and lending protocol on Solana was exploited for over $100 million. According to the report, the attacker managed to inflate the value of the protocol’s governance token MNGO, take out large loans against it, and drain Mango's liquidity pools.
MakerDAO, the lending protocol behind the DAI stablecoin, announced a plan to invest $500 million in short-term U.S. treasury bonds and investment-grade corporate bonds. The plan has been approved by the community, and will see $400 million of the organisation’s asset reserves put towards U.S. treasury bonds, and $100 million invested in corporate bonds.
DEX Protocols Metrics
Sources: CoinGecko, DeFi Llama, Nomics, Crypto.com Research
Lending Protocols Metric
*LDR (Loan to Deposit Ratio) = Total Borrowed / TVL
Sources:CoinGecko,DeFi Llama,Crypto.com Research
Charts on Layer-2 Projects
The overall L2 market saw negative growth last week, as its TVL dropped by -2.33%. Optimistic rollups and zero-knowledge rollups projects fell by -1.80% and -1.06%, respectively. Ethereum’s TVL change was negative at -2.86%.
The TVL changes for all optimistic rollup projects were negative except Metis Andromeda (+4.45%). Optimism fell the most by -2.87%.
ZK rollup projects’ TVL movement was all negative except dYdX (+1.46%). Loopring plummeted the most at -6.01%.
Further Reading
Asset management giant GoldenTree discloses $5.2M investment in SushiSwap
Terra: Luna Foundation Guard shares update on distribution of remaining assets
Transit Swap DeFi hacker bags $690,000 bounty after returning $2.75M
Bitcoin mining difficulty sees sharpest increase since May 2021 despite slow price gains
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