Tag: DeFi

DeFi borrower uses luxury watch-backed NFT as collateral for a loan

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A nonfungible token (NFT) collector shared the story of how a decentralized finance (DeFi) loan was collateralized through a luxury watch and was facilitated with an NFT representing the asset.  On July 11, pseudonymous DeFi project adviser CirrusNFT explained how a user was able to borrow $35,000 from another user by using an NFT that represented a physical item as collateral for the loan. According to the exec, a user sent a Patek Phillipe luxury watch to 4K Protocol, an escrow firm that deals with NFTs backed by physical items.…

Arcadia Finance loses $455m in defi protocol hack

Arcadia Finance, a decentralized finance (defi) protocol, has suffered a major setback, falling victim to a code exploit, resulting in a significant loss of approximately $455,000.  The breach was initially detected by blockchain security firm PeckShield, which identified a coding oversight related to untrusted input validation as the root cause of the vulnerability. Exploiting this coding loophole, a hacker managed to drain funds from Arcadia’s Ethereum and Optimism vaults, putting the defi protocol in a precarious position. The company confirmed the breach on Twitter and suspended the affected contracts to…

DeFi protocol Arcadia Finance hacked on Ethereum and Optimism for $455k

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A hacker drained approximately $455,000 from non-custodial decentralized finance (DeFi) protocol Arcadia Finance by exploiting a code vulnerability. Blockchain investigator PeckShield alerted about the hack on Arcadia Finance, pointing out the cause as “the lack of untrusted input validation.” The code supposedly lacked a validation mechanism to cross-check unverified inputs. This loophole allowed the hacker to drain funds worth roughly $455,000 from Ethereum (darcWETH) and Optimism (darcUSDC) vaults collectively. Arcadia Finance code required no validation of untrusted input. Source: PeckShield Arcadia Finance has not yet responded to Cointelegraph’s request for…

GMX popular in DEX trading but this token likely to take over DeFi

In 2023, the market capitalization of the global cryptocurrency industry reached $1.2 trillion, which exceeded expectations considering the regulatory challenges faced by many crypto platforms in the previous year. Despite these challenges, there remains a sustained level of interest in cryptocurrencies. GMX has been rapidly growing in recent months. DigiToads has also gained attention as an altcoin with potential in 2023 due to its hybrid decentralized finance (DeFi) model that provides users various avenues to generate residual income. DigiToads presale tracked by investors in 2023 DigiToads is a cryptocurrency project that…

DeFi ‘circuit breaker’ could slash hack losses by 70%: Finance Redefined

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Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you the most significant developments from the past week. Amid the growing number of hacks in the DeFi ecosystem, a smart contract developer has made a new Ethereum request for comment (ERC) proposal to introduce a circuit breaker that could cut losses from hacks by 70%. In another exploit scare, Some Multichain contracts on Ethereum suffered withdrawals of more than half of their deposits, causing on-chain sleuths to fear an exploit…

European trade body warns against the exclusion of DeFi from MiCA

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The Association for Financial Markets in Europe (ASME), an industry advocacy group that represents wholesale market participants in Europe, called for the inclusion of the decentralized finance (DeFi) sector within the recently passed markets in crypto assets (MiCA) regulations. MiCA is considered the first potential comprehensive crypto legislation that is set to come into effect in December 2024. However, the crypto legislature excludes certain aspects of the crypto ecosystem including DeFi and nonfungible tokens (NFTs). The ASME in its paper addressed to the Europen Council noted that the exclusion of…

ETH DeFi ‘circuit breaker’ could cut hack losses by 70% — Developer

A decentralized finance “circuit breaker” could have prevented billions of dollars worth of crypto being stolen from DeFi protocols in 2022, according to the developer of the newly published ERC-7265 proposal. A new Ethereum request for comment (ERC) was published on Github on July 3. In it, the lead developer Diyahir Campos proposed a standard for a DeFi “circuit breaker.” It essentially aims to set a standard for a smart contract with the ability to halt suspiciously large token outflows from a DeFi protocol. 1/ Announcing ERC 7265: Circuit Breaker…

ETH DeFi ‘circuit breaker’ could cut hack losses by 70% — Developer

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A decentralized finance (DeFi) “circuit breaker” could have prevented billions of dollars worth of crypto from being stolen from DeFi protocols in 2022, according to the developer of the newly published ERC-7265 proposal. A new Ethereum request for comment (ERC) was published on GitHub on July 3. In it, the lead developer Diyahir Campos proposed a standard for a DeFi “circuit breaker.” It essentially aims to set a standard for a smart contract that can halt suspiciously large token outflows from a DeFi protocol. 1/ Announcing ERC 7265: Circuit Breaker…

BarnBridge DAO calls halt to ‘all work’ on DeFi protocol amid SEC probe

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BarnBridge DAO members have been told to pause “all work” related to the project after a reported probe by the United States Securities and Exchange Commission (SEC). In a July 6 post to the platform’s Discord channel, Douglas Park, a lawyer for the decentralized autonomous organization revealed the news to members. “I am letting you know that the Securities and Exchange Commission is investigating BarnBridge DAO and individuals associated with the DAO,” Park said. pic.twitter.com/ChsjBuGEzM — BarnBridge (@Barn_Bridge) July 7, 2023 In order to “reduce potential further legal liability,” Park…

Aave, Radiant Among Firms Adopting Balancer’s 8020 Initiative for Tackling Lack of Liquidity in DeFi

In order to participate in protocol governance at the moment, token holders must stake the protocol’s native token, which reduces the circulating supply and capital on decentralized exchanges. Under the new model, holders can stake Balancer Pool Tokens (BPTs), allowing them to take part in governance proposals while the underlying protocol’s token remains in the pool to provide liquidity to swaps. Source