DeFi ‘circuit breaker’ could slash hack losses by 70%: Finance Redefined
Welcome to Finance Redefined, your weekly dose of essential decentralized finance (DeFi) insights — a newsletter crafted to bring you the most significant developments from the past week.
Amid the growing number of hacks in the DeFi ecosystem, a smart contract developer has made a new Ethereum request for comment (ERC) proposal to introduce a circuit breaker that could cut losses from hacks by 70%.
In another exploit scare, Some Multichain contracts on Ethereum suffered withdrawals of more than half of their deposits, causing on-chain sleuths to fear an exploit is underway. The Poly Network was exploited again due to a private key compromise, and developers have requested users to withdraw funds after the exploit affected 57 crypto assets.
BarnBridge DAO members were told to pause “all work” related to the project after a reported probe by the United States Securities and Exchange Commission (SEC).
Decentralized social media protocol DeSo has issued a $1 million bounty for building a competitor to Reddit using its native blockchain.
The top 100 DeFi tokens had a mixed week. Most tokens traded in the same range as the previous week, with a minor bearish correction.
ETH DeFi “circuit breaker” could cut hack losses by 70% — Developer
A decentralized finance “circuit breaker” could have prevented billions of dollars worth of crypto from being stolen from DeFi protocols in 2022, according to the developer of the newly published ERC-7265 proposal.
A new ERC proposal was published on GitHub on July 3. In it, the lead developer Diyahir Campos proposed a standard for a DeFi “circuit breaker.” It essentially aims to set a standard for a smart contract that can halt suspiciously large token outflows from a DeFi protocol.
BarnBridge DAO calls halt to “all work” on DeFi protocol amid SEC probe
BarnBridge DAO members have been told to pause “all work” related to the project after a reported probe by the SEC.
In a July 6 post on the platform’s Discord channel, Douglas Park, a lawyer for the decentralized autonomous organization, revealed the news to members. “I am letting you know that the Securities and Exchange Commission is investigating BarnBridge DAO and individuals associated with the DAO,” Park said.
Multichain MPC bridge sees $100 million+ outflows, sparking fears of exploit
Abnormally large outflows from the Multichain MPC bridge platform are sparking fears of a multimillion-dollar exploit.
On July 6, observers noticed that approximately $102 million worth of crypto had been withdrawn from Multichain’s Fantom bridge on the Ethereum side, as well as $666,000 from Dogechain and $5 million from Moonriver.
Poly Network urges users to withdraw after exploit affects 57 crypto assets
Further details are coming to light following a July 2 attack on cross-chain bridge platform Poly Network, with a hacker being able to issue billions of tokens out of thin air for profit.
In a July 2 tweet, Poly Network confirmed it became the latest DeFi exploit victim after attackers managed to manipulate a smart contract function on the cross-chain bridge protocol, adding it will be temporarily suspending services.
DeFi market overview
DeFi’s total market value saw a bullish surge after three bearish weeks. Data from Cointelegraph Markets Pro and TradingView shows that DeFi’s top 100 tokens by market capitalization had a mixed week, with most tokens trading in the green. 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.