Welcome to Finance Redefined, a weekly newsletter bringing you the most important developments from the previous week in decentralised finance (DeFi).
The DeFi protocol has told the victims of the attack that it is evaluating each impacted user for reimbursement more than two weeks following Curve Finance’s various pool exploits. This comes after the exploiter gave back 73% of the money that was taken.
The Zunami Protocol’s stablecoin pools were hacked this past week, causing a net loss of more than $2 million for the DeFi ecosystem, which had previously overcome the Curve conundrum. The week, however, was also full of encouraging developments, as ConsenSys successfully finished the public launch of Linea, their zero-knowledge Ethereum Virtual Machine (zkEVM), using $26 million in ether ETH.
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bridged.
Another development involved the last-minute community resolution that saved the Fantom-based decentralised exchange SpiritSwap from being shut down.
Curve Finance has made it clear that it intends to compensate customers who were negatively affected by the recent attack that cost it $62 million in losses. Ongoing investigations are making progress, according to a post on X (previously Twitter) from its official account, with almost 79% of the monies successfully recovered. Additionally, the company stated that it would evaluate each affected user for reimbursement.
The objective of this assessment is to make sure that resources are distributed fairly. The incident on July 30 involved malicious actors taking use of flaws in the Vyper compiler release history of Curve Finance.
Protocol for decentralised finance After experiencing an attack on its “zStables” pools on Curve Finance, Zunami Protocol has recommended users not to purchase any of its stablecoins, Zunami Ether (zETH) or Zunami USD (UZD).
On August 13, Zunami acknowledged on X that one of its stablecoin pools had come under attack, but said that collateral was still safe as it started looking into the likely exploit.
With the addition of more than 150 partners and the bridging of more than $26 million in ETH to date, ConsenSys has finished the launch of its Ethereum scaling rollup Linea.
In July 2023, the alpha mainnet of Linea became online with a small number of partners onboarded. This enabled developers to move pre-existing decentralised apps (DApps) from Ethereum’s mainnet or other scaling solutions to Linea. A layer-2 scaling solution called the zkEVM gives DApps in the Ethereum ecosystem lower transaction costs and higher throughput.
After its treasury money became caught on the problematic cross-chain protocol Multichain, SpiritSwap, a decentralised exchange (DEX) on Fantom, decided not to down its doors in September. SpiritSwap users decided to move the project to Power, a similar nonfungible token platform and DEX based on Fantom, in a vote on August 16. Power is going to use 200,000 USD Coin USDC.
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to the SpiritSwap bank account.
On August 9, SpiritSwap announced that if it could not find a team to take over after the Multichain exploit depleted its entire fund, it would cease operations by September 1. As its treasury assets were not connected to Multichain, it is interesting to note that Power was also vulnerable to the Multichain scandal but only experienced “small” losses.
DeFi’s entire value locked in DeFi protocols experienced a bullish spike in the previous week despite the recent market turbulence. DeFi’s top 100 tokens by market capitalization had a bullish week, according to data from Cointelegraph Markets Pro and TradingView, but the late Thursday fall erased the gains, leaving the majority of tokens trading in the red on weekly charts. For the first time in five months, the total value locked inside DeFi protocols reached $49.8 billion.