Key Notes
- Makina Finance lost $4.2 million to hackers.
- The protocolโs TVL rose 20.5% despite the notable attack.
- Makina advised its liquidity providers to remove their assets.
Makina Finance, a decentralized finance execution engine based on Ethereum, was exploited early on Tuesday, Jan. 20. Nevertheless, this protocol that automates advanced risk-managed investment strategies, like yield farming, for asset managers, AI agents, and funds, still recorded strong performance.
Multiple blockchain security platforms, including TenArmor, flagged the attack on X.
๐จTenArmor Security Alert๐จ
Our system has detected a suspicious attack involving #Makina Finance @makinafi on #ETH, resulting in an approximately loss of $4.2M.
It appears that the Makina’s DUSD/USDC CurveStable pool was drained!
Attack transaction: https://t.co/wvTPzkMLP1โฆ pic.twitter.com/qUaDF5mxWA
โ TenArmorAlert (@TenArmorAlert) January 20, 2026
ย
TenArmor wrote that Makina Finance lost roughly $4.2 million to hackers draining its DUSD/USDC CurveStable liquidity pool.
This technically means that anyone providing liquidity to the affected Curve pool is exposed. Normally, liquidity providers share losses when a pool is drained.
Almost three hours after TenArmor flagged the hack, Makina Finance posted on X that only the DUSD Curve pool had been affected and advised the liquidity providers to withdraw their assets.
Gmak, early this morning we received reports regarding an incident with the $DUSD Curve pool
At this stage, the issue appears to be isolated to DUSD LP positions on Curve. There is currently no indication that other assets or deployments are affected.
Underlying assets held inโฆ
โ Makina (@makinafi) January 20, 2026
ย
The cross-chain DeFi execution engine added that the โsecurity mode has been activated across all Machinesโ until the issue is addressed.
When a protocol activates security mode across all contracts, it means that the team is still investigating and trying to prevent further damage.
Makina Recorded Notable Gains
Despite the multi-million-dollar hack, Makina Finance recorded notable gains.
According to data from DeFiLlama, Makinaโs total value locked rose by 20.5% over the past 24 hours, reaching $100.47 million.
The protocol, which was launched in late September 2025, also collected just over $128,000 in fees over the past day, marking a new all-time high.
Itโs essential to note that anyone interacting with Makina Finance should exercise caution until the teamโs investigation is complete, regardless of the platformโs gains.
In 2025, the total amount of crypto assets lost to fraudulent actors reached $4 billion, with hacks taking up just over $3 billion. Bybitโs $1.5 billion hack led the charts as the biggest loss of the year.
Most recently, on Jan. 10, attackers stole $282 million from multiple crypto wallets and have already sent $63 million to Tornado Cash, a popular digital asset mixer.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
