DeFi sees its biggest hack in 2023 as Euler loses $197M: Finance Redefined
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.
The DeFi ecosystem was once again an exploiter’s paradise this past week as lending protocol Euler Finance fell victim to a flash loan attack resulting in a net loss of over $196 million — the biggest hack of 2023 so far.
Apart from the Euler Finance saga, USD Coin (USDC) depegging was the most significant event dominating last week’s headlines. Due to the collapse of Silicon Valley Bank, investors loaded their bags with USDC, along with an exodus of funds from centralized exchanges (CEXs) and decentralized exchanges (DEXs).
MakerDAO introduced an emergency proposal to increase its holdings of United States Treasury bonds by 150%, aiming to diversify its Dai (DAI) stablecoins’ collateral exposure.
MetaMask introduced new features with enhanced control to avoid privacy concerns. The new features allow users to manage which servers can receive their IP address.
The DeFi market had another bullish week owing to the growing positive sentiment in the broader crypto market amid major bank runs in the United States. Most of the top 100 DeFi tokens registered double-digit growth last week, with many tokens touching new multi-month highs.
Ethereum-based noncustodial lending protocol Euler Finance faced a flash loan attack on March 13. The attacker stole millions in DAI, USDC, staked Ether (StETH) and wrapped Bitcoin (WBTC).
According to on-chain data, as per the last update, the exploiter carried out multiple transactions, stealing nearly $197 million. The attack correlated with the deflation attack one month ago. The attacker used a multichain bridge to
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