Welcome to Finance Redefined, your weekly source of decentralized finance (DeFi) insights. In this edition, we recap the key events from the DeFi ecosystem over the past week, including a major hack, a promising project launch, and community-driven rescues.
Curve Finance’s Pledge to Reimburse Users
Curve Finance, a prominent DeFi protocol, has committed to reimbursing users affected by a recent hack that resulted in losses of $62 million. After extensive investigations, approximately 79% of the stolen funds have been successfully recovered.
Curve Finance has taken the noble step of assessing each impacted user individually to ensure a fair distribution of resources. The hack, which occurred on July 30, involved exploiting vulnerabilities in Curve Finance’s Vyper compiler release history.
Zunami Protocol Falls Victim to Exploits
In another unfortunate incident, Zunami Protocol experienced an attack on its stablecoin pools, resulting in an estimated loss of $2.1 million.
The protocol has urged users not to purchase its Zunami Ether (zETH) or Zunami USD (UZD) stablecoins. Zunami Protocol is diligently investigating the exploit, assuring users that their collateral remains secure. This incident underscores the ongoing challenges and security concerns in the DeFi space.
ConsenSys Launches zkEVM Linea
On a more optimistic note, ConsenSys successfully launched its Ethereum scaling rollup solution, Linea. This cutting-edge technology, known as zkEVM, aims to enhance the scalability and efficiency of the Ethereum network.
With over 150 partners onboarded and more than $26 million in ETH bridged, Linea is poised to play a pivotal role in alleviating Ethereum’s congestion issues. Developers can now migrate existing decentralized applications (DApps) to Linea, benefiting from reduced transaction costs and increased throughput.
SpiritSwap’s Last-Minute Rescue
The Fantom-based decentralized exchange (DEX), SpiritSwap, faced an imminent shutdown due to its Treasury funds being locked on the Multichain protocol. However, in an impressive display of community support, SpiritSwap users voted to transfer the project to Power, another Fantom-based nonfungible token platform, and DEX.
This move saved SpiritSwap from its scheduled closure. Power will inject $200,000 in USDC into SpiritSwap’s treasury, ensuring its sustainability. This incident highlights the resilience and cooperation within the DeFi community.
DeFi Market Overview
Despite some turbulence in the market, the total value locked in DeFi protocols witnessed a bullish surge over the past week. The top 100 DeFi tokens by market capitalization experienced a positive trend, although a late-week dip led to most tokens ending the week in the red.
Notably, the total value locked in DeFi protocols reached $49.8 billion, marking a significant milestone not seen in five months.