{"id":23802,"date":"2023-03-17T13:26:29","date_gmt":"2023-03-17T20:26:29","guid":{"rendered":"https:\/\/coinnetworknews.com\/defi-sees-its-biggest-hack-in-2023-as-euler-loses-197m-finance-redefined\/"},"modified":"2023-03-17T13:26:29","modified_gmt":"2023-03-17T20:26:29","slug":"defi-sees-its-biggest-hack-in-2023-as-euler-loses-197m-finance-redefined","status":"publish","type":"post","link":"https:\/\/coinnetworknews.com\/defi-sees-its-biggest-hack-in-2023-as-euler-loses-197m-finance-redefined\/","title":{"rendered":"DeFi sees its biggest hack in 2023 as Euler loses $197M: Finance Redefined"},"content":{"rendered":"
Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi)<\/a> insights \u2014 a newsletter crafted to bring you significant developments over the last week.<\/p>\n The DeFi ecosystem was once again an exploiter\u2019s paradise this past week as lending protocol Euler Finance fell victim to a flash loan attack resulting in a net loss of over $196 million \u2014 the biggest hack of 2023 so far.<\/p>\n Apart from the Euler Finance saga, USD Coin (USDC<\/a>) depegging was the most significant event dominating last week\u2019s headlines. Due to the collapse of Silicon Valley Bank, investors loaded their bags with USDC, along with an exodus of funds from centralized exchanges (CEXs) and decentralized exchanges (DEXs).<\/p>\n MakerDAO introduced an emergency proposal to increase its holdings of United States Treasury bonds by 150%, aiming to diversify its Dai (DAI<\/a>) stablecoins\u2019 collateral exposure. <\/p>\n MetaMask introduced new features with enhanced control to avoid privacy concerns. The new features allow users to manage which servers can receive their IP address.<\/p>\n The DeFi market had another bullish week owing to the growing positive sentiment in the broader crypto market amid major bank runs in the United States. Most of the top 100 DeFi tokens registered double-digit growth last week, with many tokens touching new multi-month highs.<\/p>\n Ethereum-based noncustodial lending protocol Euler Finance faced a flash loan attack on March 13. The attacker stole millions in DAI, USDC, staked Ether (StETH) and wrapped Bitcoin (WBTC).<\/p>\n According to on-chain data, as per the last update, the exploiter carried out multiple transactions, stealing nearly $197 million. The attack correlated with the deflation attack one month ago. The attacker used a multichain bridge to transfer the funds from the BNB Smart Chain to Ethereum.<\/p>\n Continue reading<\/strong><\/a><\/p>\n Chainalysis data shows that hourly outflows from CEXs to DEXs spiked to over $300 million on March 11, soon after a California regulator shut down SVB<\/a>.<\/p>\n A similar phenomenon occurred during the collapse<\/a> of cryptocurrency exchange FTX last year amid fears that the contagion could spread to other crypto firms. However, data from the blockchain analytics platform Token Terminal suggests that the surge in daily trading volumes for large DEXs was short-lived in both cases.<\/p>\n Continue reading<\/strong><\/a><\/p>\n Lending protocol and stablecoin issuer MakerDAO passed a proposal on March 16 to increase its portfolio holdings of U.S. Treasury bonds by 150%, from $500 million to $1.25 billion.<\/p>\n The proposal aims to increase the protocol\u2019s exposure to real-world assets and \u201chigh-quality bonds\u201d following its DAI stablecoin losing its $1 peg during market volatility on March 11. The $750 million debt ceiling hike was approved by 77% of Maker\u2019s delegates. <\/p>\nEuler Finance hacked for over $195M in flash loan attack<\/h2>\n
Crypto users turned to DEXs, loaded up on USDC after Silicon Valley Bank crash<\/h2>\n
MakerDAO passes proposal for $750M increase in US Treasury investments<\/h2>\n