DeFi & L1L2 Weekly (12/10/2022)

BNB Chain temporarily halts post-$566 million exploit. Solana-based DeFi protocol Mango hacked for over $100 million. MakerDAO passes plan to invest $500 million in U.S. government bonds.

Weekly DeFi Index

This week’s market cap, volume, and volatility indices were negative at -5.15%, -15.19%, and -46.28%, respectively.

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DeFi Index Tokens

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

Lending Protocols Metrics

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
• ParaSwap “investigating” possible private key hack

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Research and Insights Team

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