• The DeFi ecosystem was hit with a flash loan attack on crypto lending platform Euler Finance resulting in a net loss of over $196 million.
• USD Coin (USDC) depegging occurred due to the collapse of Silicon Valley Bank, causing investors to flee centralized exchanges and buy USDC.
• MakerDAO introduced an emergency proposal to increase its holdings of United States Treasury bonds by 150%.
DeFi Hacked: Euler Finance Loses $196M
The DeFi ecosystem suffered its biggest attack this year with a flash loan attack on crypto lending platform Euler Finance. The hackers are believed to be same that exploited a BSC based protocol in February, resulting in a net loss of over $196 million — the biggest hack of 2023 so far.
USD Coin Depegging
The collapse of Silicon Valley Bank caused investors to load their bags with USD Coin (USDC), along with an exodus of funds from centralized exchanges (CEXs) and decentralized exchanges (DEXs). Hourly outflows from CEXs to DEXs spiked to over $300 million shortly after the incident.
MakerDAO’s Emergency Proposal
MakerDAO introduced an emergency proposal aiming to diversify collateral exposure for Dai (DAI) stablecoins by increasing its holdings of United States Treasury bonds by 150%. This was done as part of their efforts to reduce risk and provide better stability for DAI holders.
MetaMask Enhances Control
MetaMask released new features that allow users enhanced control over which servers can receive their IP address, helping them avoid privacy concerns. This will give users more control over what data they share, providing added security while using MetaMask services.
Bullish Sentiment Boosts DeFi Market
The bullish sentiment in the broader crypto market amid major bank runs in the US saw most top 100 DeFi tokens register double-digit growth last week, with many tokens touching new multi-month highs.