The decentralized finance (DeFi) sector continues to attract increasing attention from crypto investors. ForkLog has gathered the most important events and news of the last weeks into a summary.

Main indicators of the DeFi segment

In the background of the crisis in the crypto money industry, the amount of blocked funds (TVL) in DeFi protocols fell to $ 78.89 billion. In this indicator, the industry leader is the Aave landing protocol ($ 10.48 billion). MakerDAO ($7.93 billion) and Curve ($5.51 billion) occupy the second and third positions, respectively.

In Ethereum applications, TVL fell to $46.03 billion. Last month, the figure in US dollars decreased by about 40% (as of May 25 – $75.49 billion). In ETH, the value fell just 0.5% to 37.44 million coins.

According to Duna Analytics, the decentralized exchange (DEX) trading volume over the past 30 days was $76.5 billion.

Uniswap continues to dominate the non-custodial exchange market with 56.9% of the total turnover. In terms of trading volume, the second is the DEX Curve (20.3%), the third is Synthetix (8.7%).

The hacker stole about $100 million during the attack on the Horizon interchain bridge of the Harmony protocol.

The Harmony blockchain platform team reported that there was an attack on the Horizon cross-chain bridge, as a result of which the attacker stole nearly $100 million worth of assets.

According to Certik, the attacker managed to gain control over the multisig wallet. An unknown person withdrew the tokens in a few transactions, then sent them to another wallet and exchanged them on the Uniswap decentralized exchange.

The developers have suspended Horizon. They also said that they started an investigation with law enforcement, including the FBI, and reported the situation to cryptocurrency exchanges.

The team made sure that the incident did not affect the unreliable bridge for bitcoin – all funds are safe in decentralized vaults.

Chainlink team announces start of staking

The developers of the Chainlink decentralized oracle network announced the introduction of the LINK token staking mechanism in the second half of 2022. The team noted that the move will increase the security of the ecosystem as it scales.

According to the statement, the staking mechanism will achieve “four long-term goals”:

• improve network security and provide assurance to users;
• enable community members to participate in Chainlink work;
• create and distribute rewards for stakers;
• Build a reputation structure to select nodes in decentralized oracle networks.

According to the developers, the first step is to “build a reliable and simple foundation that will allow you to gather feedback.” Over time, the scope of staking will expand and its structure will become more complex.

Blockchain Osmosis Suspended Due to Critical Vulnerability

On June 8, Osmosis, the blockchain platform of the Cosmos ecosystem, suspended block production due to a security flaw in the Osmosis DEX implementation that could lead to exhaustion of liquidity pools.

Reddit users were the first to notice the exploit. One of them noted that the vulnerability allows you to deposit liquidity into the pool and receive 50% more deposits when removed.

The developers explained that this vulnerability is possible due to a bug found in the Osmosis v9 update, which was activated on May 7.

The error was due to the miscalculation of the shares of liquidity providers when depositing and withdrawing assets from the pools. Skipped during internal testing of the update.

It took the project team several days to get the platform up and running again. Osmoz resumed block production only on June 12.

An attacker attacked DNS servers of DeFi projects from Namecheap clients

Since June 23, a number of DeFi projects have suffered attacks on their DNS servers, including Convex Finance, Allbridge, Ribbon Finance and DeFi Saver. All of them used the services of Namecheap domain registrar.

The attack vector was similar in each case: an unknown person took control of the project’s DNS server and offered its users to approve malicious smart contracts.

Allbridge co-founder Andrei Veliky told ForkLog that about 23 cryptocurrency projects are facing a DNS attack. He added that the affected group is considering suing the provider.

Namecheap went silent for almost a day, but on the evening of June 24, the company’s president, Richard Kirkendall, wrote on Twitter that the provider had detected a “dangerous tool” and removed access.

In May, the volume of venture capital financing of the DeFi sector decreased to $176.3 million.

In May, the total volume of decentralized finance focused venture capital deals totaled $176.3 million, the lowest level since September 2021.

In the total flow of venture investments in the blockchain industry, the share of the DeFi sector fell to 9% versus 18% in April.

For the first time since July 2020, DeFi financing is not among the two best deal types in the industry, according to analyst John Dantoni.

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