DeFi Protocol Hacked For $14 Million As Ether Increasingly Moves To DeFi – Technology

On Wednesday, decentralized finance (DeFi) protocol xToken
introduced it suffered an exploit by way of which $14 million in SNX
and BNT tokens had been drained by an attacker utilizing flash loans, a brand new
kind of near-instant, uncollateralized lending made doable with
blockchain expertise. Whereas these loans have gained reputation,
in addition they have made latest headlines, as they’re getting used to
exploit numerous weak DeFi protocols. xToken acknowledged that
minting paused on all contracts because it additional investigates precisely
what occurred. Late final week, Glassnode, an on-chain analytics
supplier, printed a comparability of the variety of ether deposited
in Ethereum-based good contracts to the quantity held on centralized
exchanges. In response to the report, over the previous 17 months, the
share of ether locked in good contracts elevated from 13
p.c to 22.8 p.c, whereas the share of provide on exchanges
dropped greater than 1 / 4, from about 17 p.c to 12
p.c.

On Wednesday, Elon Musk mentioned his electric-car firm is
discontinuing bitcoin funds, simply months after asserting it
would settle for the cryptocurrency and after buying over a billion
{dollars}’ value of it. Musk cited environmental considerations arising
from the electrical energy necessities for bitcoin mining and
transacting as the rationale for the reversal. Bitcoin’s
environmental impression has been a recognized concern for years and was
mentioned in a report printed by blockchain evaluation firm
Chainalysis earlier this week.

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