Barely halfway through and October is already the biggest month in cryptohacking: Finance Redefined

by · October 14, 2022

Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights – a newsletter designed to bring you significant developments over the past week.

October is historically associated with the bulls, but in 2022, the month has also become the leader in crypto hacks just halfway through, and the DeFi ecosystem has already seen almost a dozen hacks resulting in losses of hundreds of millions of dollars.

The biggest hack occurred on Solana’s DeFi platform Mango Markets on October 11, resulting in a loss of over $100 million in crypto. The hacker has now come out to demand $70 million in USD Coin (USDC) stablecoin as a bounty to return the stolen crypto.

In another hack, TempleDAO was exploited for $2 million on the same day as Mango Market’s exploit.

Moving on from the hacker exploits, DappRadar, a DeFi analytics firm, came out with its side of the explanation as to why the $1.6 billion metaverse ecosystem Decentraland daily active user count came in at less than 40.

The top 100 DeFi tokens faced bearish pressure throughout the week, with some relief coming late on Thursday. The majority of tokens were trading in the red on the weekly charts, with the exception of a few and the total value locked (TVL) fell below $50 billion.

Almost half way and October is the ‘biggest month’ in crypto hacking: Chainalysis

Blockchain analytics firm Chainalysis has labeled October 2022 as “the biggest month of the biggest year ever for hacking activity,” with the total hacked value for the month at nearly $718 million.

Despite not being more than halfway through the month, Chainalysis said 11 different hacks on DeFi protocols had seen hundreds of millions exploited.

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Mango Markets hacker proposes steep settlement

On October 12, a day after $117 million was drained from Solana DeFi platform Mango Markets via a price feed exploit, the hacker responsible for the attack demanded a settlement. The proposal was filed on Mango Market’s Decentralized Autonomous Organization (DAO) governance forum.

If approved, the procedure would involve the hacker sending stolen MNGO, SOL (SOL) and Marinade Staked SOL tokens to an address provided by the Mango DAO team. Users without loss will be recreated whole. However, the hacker demands that any bad debt be treated as a failure premium and insurance to be paid out through the community’s treasury worth USDC 70 million, or $70 million.

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DappRadar explains why there were less than 40 active users on Decentraland

Crypto Twitter was shocked by reports claiming Decentraland, a $1.2 billion metaverse ecosystem, has had less than 40 daily active users recently. The data, courtesy of DeFi analytics firm DappRadar, created quite a buzz among the crypto community, with questions being raised about the future of Web3.

Decentraland was quick to refute these calculations and claimed that to get a better insight into the platform’s user activity, one should refer to the dashboard on the website. The Metaverse platform noted that it accounted for 1,074 users interacting with smart contracts in September and a total of 56,697 monthly logged-in users.

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MakerDAO revenue drops 86% on Ether and Wrapped BTC issues

MakerDAO, the governing body of the Maker protocol, has seen revenues plunge in the third quarter of 2022, caused by a drop in loan demand and few liquidations, while expenses have remained high.

According to an Oct. 13 tweet by Johnny_TVL, a Messari analyst and co-author of “The State of Maker Q3 2022,” the decentralized autonomous organization saw revenue plunge to just over $4 million in the third quarter, down 86% from the previous quarter.

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DeFi Market Overview

Analytical data reveals that DeFi’s total value registered another drop, with TVL value falling to $50 billion at the time of writing. Data from Cointelegraph Markets Pro and TradingView shows that DeFi’s top 100 tokens by market cap had a mixed week, with the majority of tokens trading in the red on the 7-day chart, with the exception of a few.

Maker (MKR) continued its bullish momentum into the second week of October, recording a 10.78% gain over the past seven days. No other DeFi token in the top-100 traded in the green on the weekly chart.

Thanks for reading our roundup of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education in this dynamic area of ​​progress.