#Tower unite money exploit code#

In the end, it certainly wasn’t a win for DeFi. In the heat of the depegging, Curve Finance posted volumes of $6.03 billion.ĭuring the week of March 11, Uniswap did nearly double that across its WETH-USDC, USDT-USDC, and DAI-USDC pools. Each of these stablecoins served up relatively safe decentralized alternatives when SVB hit the fan.Īnd as they were scrambling for the exits, platforms that offered the best deals on broken stablecoins hit new record volumes (and earned their liquidity providers a pretty penny in the process). Likewise for Liquity’s LUSD and the lesser-known RAI. Though its backing is primarily made up in USDC, and it too fell off its peg, the market capitalization for the largest decentralized stablecoin soared and has stuck there. The market cap for Maker’s DAI was one big winner in all this. Others cut their losses and fled to more decentralized pastures. Many degens punted at this pico bottom, borrowing USDT against ETH to scoop up the discounted token, and have since reemerged victorious. How did DeFi do during the banking chaos?Īs Circle was reeling with $3.3 billion locked up in a bank that was slowly sinking, its stablecoin plummeted as low as $0.87.

“It’s only another reminder as to why security is difficult and monitoring is important,” he said.ĭeFi is far from over-you just need to know where to look. Still, it’s not over yet for the money lego narrative, said OpenZeppelin’s Gonzalez. While the industry waits for said standard, projects should be actively combining audits and go heavy on the bug bounties, “which will end up being cheaper for a company/protocol/project that needs to have their smart contracts checked,” they said.Įuler’s has to be one of the biggest losses in DeFi for some time. It's clearly a messy process for the auditing group in question, and the person behind Officer’s Notes, an anon Twitter account that tracks hacks and opsec in the crypto world, told Decrypt that the industry is still waiting for a standard security process. The vulnerability remained on-chain for eight…

#Tower unite money exploit code#

While the vulnerable code was reviewed and approved during an outside audit, the vulnerability was not discovered as part of the audit. “Contagion by extension, which is even sourer given that a healthy part of the DeFi user base has a limited understanding when it comes to how protocols use each other.”Įuler Labs works with various security groups to perform audits of the Euler Finance protocol. 'The exploit of Euler Finance and the inherent impact on more than ten DeFi protocols who relied on Euler Finance shows us the other side of composability,” yield protocol Spool’s head of risk Hendo Verbeek told Decrypt. Tuesday’s events revealed precisely how those risks can snowball into pandemonium. “But like any super power they also present risks that need to be taken into account when designing and developing a smart contract system.” “Composable protocols are the backbone of DeFi and blockchain technology in general and they are a super power for builders and users,” OpenZeppelin’s solutions developer Gustavo Gonzalez told Decrypt.

Ironically, this ability to clip and connect various liquidity pools and lending platforms throughout the ecosystem was one of the key pillars of DeFi.Ĭomposability, the devs called it. Yield Protocol, Swivel Finance, Angle, and several others all announced their level of exposure to their communities. It’s not just that: along with Euler, roughly 10 other DeFi protocols were affected thanks to the various integrations established along the way. It was a major blow to the sector Euler had been seen as the next great building block after Compound and Aave.īeyond flinging long-tail assets into the protocol and gambling risk à la Cream Finance, the popular crypto lender created isolated lending pools to help silo collateral damage should degens borrow against the wrong memecoin.