- The past week in DeFi was dominated by exploits and hacks, with three DeFi platforms losing nearly $39 million.
- Alphapo’s hot wallets were exploited for over $32 million, Era Lend was drained for $3.4 million, and Conic Finance was exploited for almost $3.5 million.
- In better news, the DeFi ecosystem saw developments in zero-knowledge-proof (ZK-proof) scaling solutions as the layer-2 sector heats up.
- Despite the hacks and bearish market conditions, the total value locked in DeFi protocols dropped significantly over the past week.
- Crypto payment platform Alphapo had roughly $31 million stolen from its hot wallets.
- Era Lend, a lending app on zkSync, was exploited for $3.4 million in a reentrancy attack.
- The development of zero-knowledge-proof (ZK-proof) technology is heating up, with the Ethereum community showcasing the latest projects in Paris.
- The Optimism network surpassed Arbitrum in transaction volume for the first time in six months.
- The total market value of DeFi experienced a bullish surge, but the total value locked remained below $50 billion.
Alphapo hot wallets hacked for over $31 million
Crypto payment platform Alphapo had roughly $31 million drained from its Ether (ETH), TRON (TRX), and Bitcoin (BTC) hot wallets, security experts reported on July 22. Since the amount of Bitcoin stolen is uncertain, the figures may be even higher. Investigations are still in progress.
Era Lend on zkSync exploited for $3.4 million in reentrancy attack
The lending zkSync lending app, Era Lend, has been exploited for $3.4 million in crypto, according to a July 25 report from blockchain security firm CertiK. The attacker used a “read-only reentrancy attack” to drain the funds. Investigations are ongoing.
Zero-knowledge tech development heats up amid bear market
ZK-proofs are cryptographic methods that allow one party to prove something is true to another party without revealing sensitive private information. The technology is powering layer-2 scaling solutions and enabling private transactions.
Optimism transaction volumes surpass Abitrum’s for the first time in six months
The Optimism network has surpassed Arbitrum in transaction volume for the first time in six months, according to data from blockchain analytics platform Artemis. Both networks are Ethereum layer 2s that use optimistic rollup technology.
DeFi market overview
DeFi’s total market value saw a bullish surge after three bearish weeks. The total value locked in DeFi protocols remained below $50 billion.
Thanks for reading our summary of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights, and education regarding this dynamically advancing space.