While the frequency of hacks of new figures formerly decreased in recent months, the decentralized finance sector (DEFI) remains a dangerous place.
A fear of $ 85 million and a hacking of $ 9.5 million directly preceded the demonstration of confidence of the Ethereum Foundation in DEFI, as it deposits $ 120 million (ETH) in the key protocols Aave ( Spin-off) spark and composed finance.
However, yesterday, users of Defi Protocol Liquity V2 were invited to withdraw their funds, after the team discovered a “potential problem” in the project stability pools.
The experience, the transmitter of Lusd and daring stablescoins, is an unchanging protocol and therefore unable to take a break or upgrade the affected pools. In case of critical vulnerability, It would be up to users be aware of the question and withdraw funds.
Read more: Response from the Ethereum Foundation in Community Contre Pousss – Discuss more eth
A lot is a well -established DEFI protocol, the V1 of which has accumulated more than $ 300 million in total locked value (TVL) since its launch in 2021, according to Defillama data.
Its V2 was launched last month and increased to nearly $ 85 million TVL before yesterday. Despite the warning, $ 68 million remains in the V2.
Fear came the day after $ 9.5 million hacking from another DEFI platform, Zklend, for $ 9.5 million on Starknet. After announcing the incident, the team offered a 10% bonus to the pirate via X and a chain message in exchange for the return of the remaining funds 3,300 ETH.
The Safety Society of the Blockchain Slowmist identified the deep cause of the feat as a rounded problem during the withdrawal process and linked the address of the attacker to the exploit Eraend 2023.
Put ethos at work
Following recent criticisms on concentration and leadership, the Ethereum Foundation followed with a demonstration of support for its decentralized financial sector (DEFI).
Three weeks after setting up a multisig portfolio aimed at “participating in the DEFI ecosystem”, the foundation puts its money where its mouth is, with a total of 45,000 ETH ($ 120 million) deposited in the protocols of Loan Defi, Aave, Spark and Compound Finance.
Read more: Vitalik to Ethereum Foundation Critics: “ This is not how this game works ”
The blockchain security company, Peckshield, better known to have alerted the Defi community to devastating hacks, reported the movements, the foundation confirming the deposits an hour later.
Will the funds be SAFU?
Protocols that have trusted the Foundation are so far well established and have a generally strong reputation for security – but not without certain incidents.
Last August, Aave was hit by a minor Pirate $ 56,000 from a periphery contractCompared to a rush pot raid. In May 2023, the involuntary effects of an update of the Aave V2 on certain channels froze assets worth more than $ 100 million for a week.
A similar problem has struck finance composed on a larger scale in 2022, with $ 830 million in ETH ETH loan markets for a week. The previous year, Compound, accidentally distributed more than $ 80 million in awards and an additional $ 69 million while the fix was waiting.
More recently, the DAO complex has been targeted by a “attack” of malicious governance which was adopted, apparently due to a lack of interest, after a notorious “whale”, known as Hummpy, Bought compound tokens for voting purposes.
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