Finance redefined: Solana and Nomad bridge fall prey to exploits that lose millions

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Welcome to Finance Redefined, your weekly dose of essential insights into decentralized finance (DeFi) – a newsletter created to bring you key developments from the past week.

Over the past week, the DeFi ecosystem saw two exploits, one after the other, resulting in the loss of millions of dollars. First, cross-bridge token platform Nomad fell victim to what many considered to be a decentralized heist, sucking nearly $190 million out of their wallets.

The Solana ecosystem fell victim to a widespread unknown attack that drained thousands of wallets from all the money. Aside from a series of exploits, Nansen admitted their negligence towards the DeFi market during the NFT boom.

The top 100 DeFi tokens had mixed price action for the past week, with many seeing a downturn after bullish action last week.

Nomad Token Bridge Emptied From $190 Million Funds In Security Exploit

The Nomad token bridge appears to have undergone a security exploit that has allowed hackers to systematically drain a significant portion of the bridge’s funds over a long series of transactions.

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Nearly the entire $190.7 million worth of crypto has been removed from the bridge, with just $651.54 left in the wallet, according to DeFi tracking platform DefiLlama. However, Nomad later suggested to UKTN that some of the money was withdrawn by “white hat friends” who took the money out with the intention of protecting them.

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Slope wallets accused of Solana-based wallet attack

As the dust settles from yesterday’s chaos of the Solana ecosystem, data is surfacing that wallet provider Slope is largely responsible for the security exploit that stole crypto from thousands of Solana users.

Slope is a Web3 wallet provider for the Solana layer-1 blockchain. Via the Solana Status Twitter account on Wednesday, the Solana Foundation pointed the finger at Slope, stating that “it appears that affected addresses were created, imported or used in Slope mobile wallet applications at some point.”

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Nansen Admits Neglecting DeFi Plans During NFT Craze

CEO and co-founder Alex Svanevik recently spoke about Nansen’s growth, highlighting that the company has registered more than 130 million addresses and has grown by 30% despite the crypto decline. Svanevik attributed much of its success to the value of blockchain platforms, especially those based on Ethereum.

UKTN reached out to Andrew Thurman of Nansen for more insight into the company’s success. Thurman, a psychometric enhancement engineer from Simian, explained that after the nonfungible token (NFT) craze, they kind of neglected their DeFi plans.

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Uniswap Foundation’s proposal gets mixed reactions over its $74 million price tag

The Uniswap Labs community has already started thinking about a new proposal that would form a Uniswap Foundation in the United States, but first it will cost $74 million.

The proposal has received mixed reactions from the community so far, with many praising the foundation’s plans to support and expand the Uniswap ecosystem, while others disapproved of the high price tag.

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DeFi market overview

Analytical data shows that the total value of DeFi locked has increased by nearly $9 billion from the past week, topping out at $79.4 billion. Data from UKTN Markets Pro and TradingView shows that DeFi’s top 100 tokens by market cap had a mixed week, with several tokens trading in the red, while a few others even posted double digits.

Yearn.finance (YFI) was the biggest climber in the top 100, up 20% in the past week, followed by Lido DAO (LDO) up 16%. Fantom (FTM) saw a 10% increase in price and PancakeSwap (CAKE) recorded an 8% increase on the weekly chart.

Thanks for reading our roundup of this week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education in this dynamically evolving space.