May 29, 2024
Hackers Target DeFi: Aerodrome and Velodrome Front Ends Compromised
Latest Cryptocurrency News

Hackers Target DeFi: Aerodrome and Velodrome Front Ends Compromised

Decentralized finance (DeFi) platforms Aerodrome and Velodrome disclosed on November 28 that their front ends had been compromised, urging users to refrain from interacting with the platforms while investigations are ongoing.

One user on social media platform X (formerly Twitter) noted that approximately $40,000 in funds were on the move, traced back to two distinct wallet addresses.

As per DefiLlama, Aerodrome has a total locked value (TVL) of $63.59 million, while Velodrome has a TVL of $139.73 million.

Aerodrome, developed by Velodrome Finance, operates as an automated market maker (AMM) and was established on the Base protocol in late August. The platform gained rapid popularity, allowing users to deposit liquidity and earn its native token AERO. Earlier this year, it made headlines by attracting $150 million in a single day, propelling Base to a TVL of nearly $400 million, surpassing the Solana network.

The DeFi sector has been a frequent target for hackers, resulting in significant losses. According to Chainalysis data for 2022, over 80% of the crypto industry’s hacks occurred in the DeFi space, amounting to more than $3 billion in losses. Footprint Analytics data indicated that in the first quarter of 2023, DeFi accounted for 62% of losses.

DeFi Llama reported that in 2023, DeFi protocols and non-DeFi-related crypto firms experienced $735 million in losses across 69 hacks. The most significant hack in March involved the DeFi protocol Euler Finance, with a loss of $197 million.

Investors and users are advised to exercise caution and stay informed as investigations into the compromises on the Aerodrome and Velodrome progress.

Image: Wallpapers.com

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