DeFi sees its biggest hack in 2023 as Euler loses $197M: Finance Redefined

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Welcome to Finance Redefined. This is a weekly newsletter that provides key insights on Decentralized Finance (DeFi) and was created to bring you the important developments of the past week.

The DeFi ecosystem once again became an abuser’s paradise last week as lending protocol Euler Finance fell victim to a flash loan attack, resulting in a net loss of more than $196 million. This is his biggest hack of 2023.

Aside from Euler Finance, the USD Coin (USDC) depeg was the most important event that dominated headlines last week. With the Silicon Valley Bank collapse, investors loaded USDC into their bags along with the outflow of funds from centralized exchanges (CEX) and decentralized exchanges (DEX).

MakerDAO has introduced an urgent proposal to increase its holdings of US Treasuries by 150% with the aim of diversifying its collateral exposure for the Dai (DAI) stablecoin.

MetaMask has introduced a new feature with enhanced controls to avoid privacy issues. A new feature allows users to manage servers that can receive their IP address.

The DeFi market has had another bullish week as positive sentiment builds in the broader crypto market amid a crackdown on major banks in the US. Most of his top 100 DeFi tokens saw double-digit growth last week, with many reaching multi-month highs.

Euler Finance hacked over $195 million in flash loan attack

Euler Finance, an Ethereum-based non-custody lending protocol, faced a flash loan attack on March 13th. Attackers stole millions of dollars of his DAI, USDC, Stake Ether (StETH) and Wrap Bitcoin (WBTC).

According to on-chain data, the exploit performed multiple transactions and stole nearly $197 million, according to the latest update. This attack correlated with a deflationary attack a month ago. The attacker used a multi-chain bridge to transfer funds from BNB Smart his chain to Ethereum.

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Cryptocurrency users turned to DEX piled up in USDC after Silicon Valley Bank collapse

According to Chainalysis data, hourly outflows from CEX to DEX soared to over $300 million on March 11, shortly after California regulators shut down SVB.

A similar phenomenon occurred when the cryptocurrency exchange FTX went bankrupt last year, and there was a fear that the infection would spread to other cryptocurrency companies. However, data from blockchain analytics platform Token Terminal suggests that his massive DEX’s surge in daily trading volume is short-lived in both cases.

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MakerDAO Passes Proposal to Increase US Treasury Investment by $750 Million

MakerDAO, the lending protocol and stablecoin issuer, passed a proposal on March 16th to increase its U.S. Treasury holdings portfolio by 150% from $500 million to $1.25 billion.

The proposal aims to increase the protocol’s exposure to real-world assets and “high-quality bonds” after the DAI stablecoin lost its $1 peg in March 11 market volatility.

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MetaMask addresses privacy concerns with new features for enhanced control

Web3 wallet app MetaMask has introduced several new features to enhance privacy and give users more control, according to a March 14 blog post by the developer. This new feature comes after MetaMask was previously criticized for violating user privacy.

Previously, MetaMask used the Infura RPC node to automatically connect to Ethereum whenever a user first set up their wallet. The user can change the setting later, but this is according to a report by Ethereum node operator Chase Wright, who said that before changing the node, the user’s public address was sent to her Infura. I mean

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DeFi market overview

According to analytical data, DeFi’s total market value reached $48 billion in the past week. According to data from Cointelegraph Markets Pro and TradingView, his DeFi Top 100 Tokens by Market Cap had a bullish week, with most of the tokens trading green, with a few exceptions.

Thanks for reading this week’s overview of the most influential DeFi developments. Join us next Friday for more stories, insights and education in this dynamically advancing space.