Welcome to Finance Redefined, your weekly dose of key decentralized finance (DeFi) insights – a e-newsletter to carry you key developments over the previous week.

For DeFi, the final week of 2022 noticed one other string of exploits, insider job allegations, and exit rip-off drama. It began round Christmas when Defrost Finance, a decentralized leveraged trading platform on the Avalanche blockchain, was exploited by a DeFi flash lending assault that induced $12 million in losses.

Nevertheless, the hacker behind the assaults reportedly returned among the funds the subsequent day. Safety evaluation agency Certik examined the chain of occasions and concluded that the $12 million siphoned was a part of an exit rip-off.

On December 26, because the Defrost exploit saga unfolded, Bitkeep, a multichain pockets, was exploited by hackers for $8 million. An evaluation report later revealed that exploiters lured customers by way of phishing web sites.

The highest 100 DeFi tokens had one other bearish week with little to no worth momentum. Nearly all tokens traded in pink on the weekly charts.

DeFi Flash Mortgage Hacker Liquidates Defrost Finance Customers, Causes $12M Loss

This week Defrost Finance introduced that each variations – Defrost v1 and Defrost v2 – are being investigated for a hack. The announcement comes after buyers reported dropping their staked Defrost Finance (MELT) and Avalanche (AVAX) tokens from MetaMask wallets.

After some customers complained concerning the uncommon lack of cash, Defrost Finance core workforce member Doran confirmed that Defrost v2 was hit by a flash credit score assault. At this level, the platform believed that Defrost v1 was not affected by the hack and determined to shut v2 for additional investigation.

Proceed studying

Defrost Finance breaks silence on ‘exit rip-off’ allegations and denies pulling the rug

Defrost Finance, the decentralized trading platform that suffered a $12 million exploit within the days main as much as Christmas, has denied allegations that it “unnerved” its customers as a part of an elaborate “exit rip-off”.

On December 23, the platform introduced that it suffered a lightning credit score assault that resulted in person funds being drained from its v2 protocol. A day later, in one other incident, a hacker stole the admin key for a second “a lot bigger” assault on the v1 protocol.

Proceed studying

Hackers drain $8 million in property from Bitkeep wallets in newest DeFi exploit

Whereas many are nonetheless having fun with the vacation season, hackers are onerous at work, consuming round $8 million in an ongoing BitKeep pockets exploit.

On December 26, some customers of the multichain crypto pockets BitKeep reported that their funds had been being withdrawn and transferred whereas not utilizing their wallets. Of their official Telegram group, BitKeep workforce confirmed that some APK package deal downloads had been hijacked, with code put in by the hackers.

Proceed studying

Midas Investments closes with a $63 million DeFi portfolio deficit

Custodial funding platform Midas will stop operations resulting from a $63.3 million deficit in its DeFi portfolio. Midas founder and CEO Iakov Levin, also called Trevor, wrote that the transfer was partly as a result of fund’s DeFi portfolio dropping $50 million, which was 20% of its $250 million in property underneath administration issues.

As well as, Levin emphasised that the collapse of Terra, FTX and Celsius contributed to Midas’ struggles, with customers withdrawing 60% of funds after these debacles.

Proceed studying

Overview of the DeFi market

Analytical knowledge reveals that the overall market value of DeFi stayed beneath $40 billion over the previous week, trading at round $38.2 billion on the time of writing. Information from Cointelegraph Markets Professional and TradingView reveals that DeFi’s prime 100 tokens by market cap had a risky and bearish week, with nearly all tokens trading within the pink.

Thanks for studying our roundup of this week’s most influential DeFi developments. Be part of us subsequent Friday for extra tales, insights and knowledge on this dynamically evolving area.