Solana and Nomad bridge fall victim to multi-million dollar bug

Welcome to Finance Redefined, your weekly top decentralized finance (DeFi) insights – a newsletter designed to bring you last week’s major developments.

In the past week, there have been two breaches in the DeFi ecosystem, one after the other, resulting in millions of dollars in losses. First, Nomad, a cross-bridge token platform, fell victim to what many believed to be a decentralized heist, shedding nearly $190 million from their wallets.

The Solana ecosystem fell victim to a widespread unknown attack that drained all funds from thousands of wallets. In addition to a series of exploits, Nansen also acknowledged their neglect of the DeFi market during the NFT boom.

The past week has seen mixed price action for the top 100 DeFi tokens, with many seeing a downturn after some bullish action last week.

Nomad Token Bridge drains $190M in security breach

The Nomad Token Bridge appears to have experienced a security breach that allowed hackers to systematically consume a significant portion of the bridge’s funds in a series of transactions.

According to DeFi tracking platform DefiLlama, nearly all of the $190.7 million in cryptocurrency has been removed from the bridge, leaving only $651.54 in wallets. However, Nomad later suggested to Cointelegraph that some of the funds were withdrawn by “white hat friends” who were taken to protect them.

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Solana-based wallet attack blamed on Slope wallet

As the dust settled yesterday from the chaos of the Solana (SOL) ecosystem, data surfaced that wallet provider Slope was largely responsible for a security breach that stole cryptocurrencies from thousands of Solana users.

Slope is a Web3 wallet provider for the Solana layer 1 blockchain. Via the Solana Status Twitter account on Wednesday, the Solana Foundation took aim at Slope, saying “it appears that the affected addresses were created, imported or used in the Slope mobile wallet application at one point.”

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Nansen admits to ignoring DeFi initiatives amid NFT craze

CEO and co-founder Alex Svanevik recently spoke about Nansen’s growth, emphasizing that the company has registered more than 130 million addresses, a 30% increase despite the cryptocurrency downturn. Svanevik attributes much of his success to the value of blockchain platforms, especially those based on Ethereum.

Cointelegraph reached out to Nansen’s Andrew Thurman to gain more insight into the company’s success. Thurman, a psychometric enhancement technologist at Simian, explained that after the non-fungible token (NFT) craze, they kind of ignored their DeFi plans.

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Uniswap Foundation Proposal Over $74M, Mixed Reactions

The Uniswap Labs community has started considering a new proposal that would create the Uniswap Foundation in the United States, but first, it would cost $74 million.

The proposal has received mixed feedback from the community so far, with many praising the foundation’s plans to support and expand the Uniswap ecosystem, while others are hesitant about its high price.

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DeFi Market Overview

The analysis shows that the total value locked in DeFi increased by nearly $9 billion from last week to $79.4 billion. Data from Cointelegraph Markets Pro and TradingView shows that the top 100 tokens by market cap in DeFi have had a mixed week this week, with several tokens trading in the red while others even recorded double-digit gains. (YFI) was the biggest gainer in the top 100, up 20% over the past week, followed by Lido DAO (LDO), up 16%. Fantom (FTM) is up 10% and PancakeSwap (CAKE) is up 8% on the weekly chart.

Thank you for reading our roundup of the week’s most influential DeFi developments. Join us next Friday for more stories, insights and education in this dynamically growing space.