An unsung hero saves the DeFi protocol from a potential exploit: Finance Redefined

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

Last week’s headline was dominated by some of DeFi’s biggest hacks. This week is a time of redemption for many DeFi protocols that have either avoided a hack attempt or recovered a significant portion of their stolen funds.

The BitBTC bridge allegedly had a bug that would essentially allow an attacker to create fake tokens on one side of the bridge and exchange them for real ones. However, a Twitter user was able to foresee the vulnerability and notified the cross-bridge platform.

Market striker Moola has scored around half a million dollars in ‘bug bounty’ after opting to return the majority of the cryptocurrency it mined from the Celo-based lending protocol. Cryptocurrency maker Wintermute repaid a $92 million TrueFi loan on time despite a $160 million hack.

The Mango Market hackers who returned a significant portion of the stolen $117 million to Protocol could still face legal action despite Protocol’s decision to award it a $50 million bounty.

The Top 100 DeFi tokens remained bearish for another week as the majority of tokens were trading red, except for a few. The total value locked also remained below $50 billion for the second week in a row.

Twitter User Saves Cross-Chain Bridge From Potential Exploit

A cross-chain bridge between BitBTC and the Ethereum Layer-2 Optimism Network was able to avoid a potentially costly exploit thanks to the work of an eagle-eyed Twitter user.

The custom cross-chain bridge provides a ramp for users to send assets between Optimism’s network and BitAnt’s DeFi ecosystem, which includes yield services, non-fungible tokens (NFTs), swaps, and the BitBTC token, in which 1 million BitBTC represents 1 Bitcoin (BTC).

continue reading

Moola Market striker returns most of $9m looted for $500,000 bounty

An attacker returned just over 93% of the more than $9 million worth of cryptocurrencies they mined from the blockchain-based DeFi lending protocol Celo Moola Market.

Around 6:00 p.m. UTC on October 18, the Moola Market team tweeted that they were investigating an incident and had suspended all activity, adding that they had contacted the authorities and offered a bug bounty to the exploiter if the funds were returned within 24 hours.

continue reading

The MangoMarket exploiter says the actions were “legal,” but were they?

The exploiter of $117million Mango Markets has defended their actions as ‘legal’ but a lawyer suggests they could still face the consequences.

Self-proclaimed digital art dealer Avraham Eisenberg posed as the exploiter in a series of tweets on October 15, claiming that he and a team had embarked on a “highly profitable business strategy” and that it was “a market-opening legal actions, using the protocol as designed.”

continue reading

Wintermute repays $92M TrueFi loan on time despite $160M hack

When Wintermute, a cryptocurrency market maker, lost $160 million due to a hack and concerns about repaying debt worth $189.4 million surfaced. However, in an exciting turn of events, Wintermute repaid its largest debt due on October 15, involving a $92 million Tether (USDT) loan issued by TrueFi.

After repaying the $92 million loan from TrueFi, Wintermute still owes $75 million to Maple Finance in USD Coin (USDC) and wrapped Ether (wETH) and $22.4 million to Clearpool, for a total of 97 $.4 million in debt.

continue reading

Binance delegates 13.2 million UNI tokens, becoming Uniswap DAO’s second largest voting holder

Crypto exchange Binance is now the second-largest entity by voting power in the Uniswap DAO, just behind venture capital firm Andreessen Horowitz, or a16z, according to the on-chain delegate list.

On October 18, Binance delegated 13.2 million Uniswap (UNI) tokens from its books, which represents 5.9% of the voting rights – a percentage of tokens delegated to the exchange. Compared to UNI’s total supply, the delegated amount represents 1.3%.

continue reading

DeFi market overview

Analytical data reveals that the total value of DeFi recorded a further decline, with the total value locked (TVL) falling below $50 billion at the time of writing. Data from Cointelegraph Markets Pro and TradingView shows that the top 100 DeFi tokens by market capitalization had a mixed week, with the majority of tokens trading red on the 7-day chart, except for a few.

Maker (MKR) continued its bull run in the third week of October, posting a 12% gain in the past seven days, followed by Aave (AAVE) with a 10% weekly rise. Lido DAO (LDO) was another DeFi token that recorded a 9.45% increase in the weekly charts

Thanks for reading our roundup of the most notable DeFi developments from this week. Join us next Friday for more stories, ideas and education in this dynamically evolving space.