Finance Redefined is your weekly dose of essential Decentralized Finance (DeFi) insights. This newsletter was created to highlight the most significant developments in the past week.
October has been associated historically with bulls. However, in 2022 the month has also been the leader in crypto hacks. The DeFi ecosystem already has seen close to a dozen hacks that have resulted in losses in excess of 100 million dollars.
On Oct. 11, Solana’s DeFi platform Mango Markets was the victim of the largest hack, resulting in a loss over $100 million of crypto. As a reward for the return of stolen crypto, the hacker is now demanding $70 million USD Coin ( USDC).
Another hack saw TempleDAO exploited for $2,000,000 on the same day that Mango Market’s exploit.
DappRadar (a DeFi analytic company) offered its explanation for why it calculated daily active users in Decentraland’s $1.6 billion metaverse ecosystem Decentraland to be less than 40.
Bearish pressure was felt by the top 100 DeFi tokens throughout the week. Some relief came late on Thursday. Except for a few tokens, the majority of the tokens traded red on the weekly charts. The total value locked (TVL), however, fell below $50 billion.
It’s only halfway, and October is the “biggest month” in crypto hacks: Chainalysis
Chainalysis, a blockchain analytics company, has declared October 2022 “the largest month in the greatest year for hacking activity,” with the total amount of hacks for the month almost reaching $718 million.
Chainalysis stated that 11 hacks on DeFi protocols were exploited, despite not having reached half way through the month.
Mango Markets hacker suggests a steep settlement
The hacker behind the attack demanded a settlement on Oct. 12, just one day after $117million was taken from Solana DeFi platform Mango Markets through a price feed exploit. The Mango Markets decentralized autonomous organisation (DAO), governance forum received the proposal.
If the procedure is approved, it would see the hacker send stolen MNGO, SOL and Marinade Staked SOL tokens at an address provided to the Mango DAO group. Users with no bad debt will be made whole. Hackers demand that bad debts be treated as bug bounty and insurance. This will be done via the community treasurey, which is worth 70 million USDC or $70 millions.
DappRadar explains Decentraland’s 40-user limit
Crypto Twitter was stunned by recent reports that Decentraland, a $1.2 million metaverse ecosystem, had less than 40 active users per day. DappRadar, an analytical firm that analyzes DeFi data, generated quite a buzz in the crypto community and raised questions about the future of Web3.
Decentraland was quick to dispute those metrics . It claimed that the dashboard on its website provides a better view of the platform’s user activity. According to the metaverse platform, it had 1,074 users who interacted with smart contracts in September. There were also 56,697 monthly log-in users.
MakerDAO revenue plunges 86% due to Ether and Wrapped BTC woes
MakerDAO, which is the governing body for the Maker Protocol has seen its revenue drop in the third quarter 2022 due to a decrease in loan demand and fewer liquidations while expenses have remained high.
Johnny_TVL (a Messari analyst, coauthor of “The State of Maker Q3 202022”) tweeted that the revenue of the autonomous decentralized organization fell to just over $4M in Q3, an 86% drop from the previous quarter.
Overview of the DeFi market
Analytical data shows that DeFi’s total worth experienced another drop, with the TVL value dropping to $50 billion as of the writing. TradingView and Cointelegraph Markets Pro data show that DeFi’s top 100 tokens in terms of market capitalization had a mixed week. The majority of tokens traded in red on the 7 day chart, except for a few.
Maker ( ) maintained its bullish momentum through the second week in October. It registered a 10. 78% gain in the last seven days. The weekly chart showed that no other DeFi token was trading in green.
We are grateful that you have read our summary of the week’s most important DeFi developments. For more information, insight and education on this rapidly changing space, join us next Friday.