DeFi Bug Accidentally gives $90M to users🤯
Hashing Bits || Week 39
This Week in Hacks
Compound’s Incorrect distribution of Tokens - $80M Loss
Compound Finance, a decentralised lending protocol, suffered an incorrect distribution of $COMP tokens after the implementation of proposal 062 (Dynamic COMP reward distribution). The token supply bug resulted in a loss of ~$80M with a 10% price drop in native token. Ethereum’s Solidity language is blamed for the occurrence of the event.
Bitfinex’s mistakenly sent 7,626 ETH worth $23 M
Bitfinex, a Hong-Kong based cryptocurrency exchange, mistakenly sent 7,626 ETH worth $23 Million to a miner where it was supposed to be $100,000 in Ether. A user sent 7,626 ETH in a wrong payment transaction. The block owner agreed to return $23M mistakenly sent to him.
DeversiFi revealed that they have launched investigative procedures to determine the most probable cause of the matter, while also adding that: “No customer funds on DeversiFi are at risk and this is an internal issue for DeversiFi to resolve”, as well as that "operations are unaffected.”
In response, Bitfinex tweeted that: “In transactions such as these, the fees are shouldered by third party integrations with Bitfinex," suggesting that the exchange will not directly bear the burden of the fee.
Vulnerability Write-ups
Compound Finance Event Analysis by Rekt.
Eleven Finance BSC exploit Community Update by Eleven Finance team.
Belt Finance Logic Error Bug Fix Postmortem by Immunefi.
A 23.7 Million Dollar Ethereum Transaction Fees Postmortem by Deversifi
DeFi Security
Security First in DeFi: How Will the Trustless Bridge Stop the Hackers by Binance.
Privacy and Security in DeFi by Harmony Protocol
An Overview of Blockchain-Based Smart Contract Security Vulnerabilities by RSA Conference.
DeFi in Numbers
The year 2021 has been pretty dynamic for decentralized finance or the DeFi market. After an impressive growth between January and May, the global DeFi market size plunged by 35% in just a few weeks and then recovered again, reaching new record highs.
According to data presented by Mejores Apuestas, the DeFi market size soared by 335% year-over-year to around $85bn this week, despite the 13% drop in September.
More From Editor’s Desk
The legacy blockchain networks such as Bitcoin, Litecoin, Ethereum, and others are focused on simple value transfer, but DeFi took it a step further to allow various financial use cases.
Although various blockchains are adopting DeFi applications, the successes already attained by Defi may have been impossible without Ethereum blockchain’s functionalities such as smart contracts, decentralized applications, consensus algorithms, and cryptographic technology.
Unlike legacy financial institutions like Paypal, Visa, and other payment networks, DeFi networks seem to find a way to remove the need for a third party in financial services, thus giving users control over their funds and the flexibility they deserve.
Checkout our latest article on various trending use cases of smart contracts in Defi. Maybe you get an appropriate offering that will fill the gap in the target market.