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.
October is historically associated with the bulls, but in 2022, the month has also become the leader in crypto hacks as barely halfway through, and the DeFi ecosystem has already seen nearly a dozen hacks resulting in losses of hundreds of millions of dollars.
The largest hack occurred on Solana’s DeFi platform Mango Markets on Oct. 11, resulting in a loss of over $100 million worth of crypto. The hacker has now come out to demand $70 million in USD Coin (USDC) stablecoin as a bounty to return the stolen crypto.
In another hack, TempleDAO was exploited for $2 million on the same day as Mango Market’s exploit.
Moving on from the hacker exploits, DappRadar, a DeFi analytic firm, came out with its side of the explanation on why its calculation about daily active users in the $1.6 billion metaverse ecosystem Decentraland came to less than 40.
The top 100 DeFi tokens faced bearish pressure throughout the week, with some relief coming late on Thursday. The majority of the tokens traded in red on the weekly charts, barring a few and the total value locked (TVL) dipped below $50 billion.
Barely halfway and October is the ‘biggest month’ in crypto hacks: Chainalysis
Blockchain analytics firm Chainalysis has labeled October 2022 as “the biggest month in the biggest year ever for hacking activity,” with the total hacked value for the month nearly reaching $718 million.
Despite not being more than halfway through the month, Chainalysis said 11 different hacks on DeFi protocols had seen hundreds of millions exploited.
Mango Markets hacker proposes steep settlement
On Oct. 12, one day after $117 million was drained from Solana DeFi platform Mango Markets via a price feed exploit, the hacker responsible for the attack demanded a settlement. The proposal was filed on the Mango Markets decentralized autonomous organization (DAO) governance forum.
If passed, the procedure would…