Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you significant developments over the last week.
DeFi had $62million worth of exploits at December’s end, which was the lowest amount of stolen funds. The figure might be a relief, given the many bridge hacks this year and the fact that hundreds of millions were stolen, but cybersecurity experts warned that there would be no decrease in exploits or flash loans in the ecosystem by 2023.
MakerDAO lost out to Lido protocol for the top total value locked (TVL), in the DeFi ecosystem. Avraham Eisenberg, Mango Markets hacker was also detained in the meantime.
A GMX whale was hacked to steal $3.5 million in GMX tokens at the start of the new Year. The hackers stole 82,519 GMX coins, then exchanged them for 2,627 Ether, and then transferred them to the Ethereum network via Hop Protocol and Across Protocol.
The year began on a bullish note for the top 100 DeFi tokens, with most trading in the green on weekly charts.
$62 million crypto stolen in December was the ‘lowest monthly figure’ in 2022: CertiK
For the 2022 holidays, cryptocurrency hackers appeared to be slowing down. $62.2 million in cryptocurrencies were stolen in December. It was the “lowest monthly figure” of the year, according to CertiK.
On Dec. 31, the blockchain security company tweeted a list of the month’s most significant attacks. The $15.5 million worth exit scams were highlighted as the most valuable method, followed by $7.6 millions worth of flash-loan-based exploits.
No ‘respite’ for exploits, flash loans or exit scams in 2023: Cybersecurity firm
The new year is a fresh start for malicious actors in the crypto space and 2023 won’t likely see a slowdown in scams, exploits and hacks, according to CertiK. Cointelegraph was told by the blockchain security company its outlook for this year’s bad actors.
CertiK pointed to the “devastating” exploits on cross-chain bridges in 2022. Six of the ten largest exploits for the year came from bridges. These exploits amounted to approximately $1.4 Billion.
MakerDAO’s MakerLOO has been overtaken and Lido now holds the highest TVL in DeFi
Liquid staking protocol Lido Finance benefited the most from the September Ethereum merge, with its TVL currently sitting in the top spot among all other DeFi protocols.
According to data from DefiLlama, Lido’s liquid staking protocol now commands $5.9 billion in TVL, overtaking MakerDAO’s $5.89 billion and Aave’s $3.7 billion.
Avraham Eisenberg, Mango Markets entrepreneur, is being held pending trial
The United States District Court for the District of Puerto Rico issued a detention order to Avraham Eisenberg, the notorious Mango Markets shopper.
After holding a hearing in detention, United States Magistrate Bruce McGiverin determined that Eisenberg needed to be detained for several reasons. According to court documents, there is no condition or combination of conditions of Eisenberg’s release that will reasonably assure his appearance as required.
Market overview for DeFi
Analytical data reveals that DeFi’s total market value remained below $40 billion this past week, trading at about $38.5 billion at the time of writing. Data from Cointelegraph Markets Pro and TradingView show that DeFi’s top 100 tokens by market capitalization had a volatile and bullish week, with nearly all of the tokens trading in the green.
Thanks for reading our summary of this week’s most impactful DeFi developments. For more information, insight and education on this rapidly changing space, join us next Friday.