DeFi

On 13 March 2023 at 08:56:35 AM +UTC, DeFi lending protocol Euler Finance experienced a Flash Loan Attack. Euler Finance is a protocol that operates as a permissionless lending protocol. Its primary goal is to facilitate lending and borrowing of various cryptocurrencies for users. The UK-based tech startup utilizes mathematical principles to develop non-custodial protocols on Ethereum and other blockchain networks, with a focus on achieving high performance. Based on on-chain data analysis, the attacker has successfully executed multiple transactions resulting…

In the latest development in the world of Decentralized Finance (DeFi), Tender.fi, a DeFi lending protocol, fell victim to a white hat attack. The alleged ethical hacker behind the attack had managed to drain a whopping $1.6 million from the platform, forcing the service to halt borrowing while it attempts to recover its assets. The attack, which took place on Mar-07-2023 at 08:21:38 AM +UTC, has caused significant concern among the DeFi community. According to Numen Cyber’s on-chain monitoring, the attacker siphoned 198…

TVL (Total Value Locked) is a metric used in the decentralized finance (DeFi) space to represent the total value locked into DeFi protocols. This value is locked in the form of cryptocurrencies, stablecoins, and other digital assets and is used to calculate the overall value invested in DeFi protocols. How Is TVL Calculated? TVL is an important metric in DeFi as it measures the health of the DeFi ecosystem and the level of adoption of DeFi protocols. A high TVL…

Decentralized finance (DeFi) lending platforms are decentralized applications (dApps) built on blockchain technology that enable users to borrow and lend cryptocurrency. These platforms use smart contracts to automate the lending process, eliminating the need for intermediaries such as banks. Here's an example of how a DeFi lending platform might work: Alice wants to borrow 100 ETH, so she goes to a DeFi lending platform and posts a request for a loan. Bob, who has 100 ETH to lend, sees Alice's…

Several types of services can be accessed in the decentralized finance (DeFi) space, including: Lending and borrowing: Platforms such as Aave, Compound, and MakerDAO allow users to lend and borrow cryptocurrencies, earning or paying interest. Trading: Decentralized exchanges (DEXs) such as Uniswap and SushiSwap allow users to trade cryptocurrencies in a decentralized manner without the need for a central authority. Stablecoins: Stablecoins such as DAI and USDC are designed to maintain a stable value and can be used as a…

Stablecoin loans are loans issued and collateralized using stablecoins; digital assets pegged to the value of a fiat currency or other assets such as gold. These loans can be issued by decentralized lending platforms, which use smart contract technology to automate the lending process. One example of a stablecoin loan is a borrower using their stablecoin assets as collateral to borrow another stablecoin from a lending platform at a certain interest rate. For example, a borrower might deposit 100 USDC…

DeFi synthetic loans, also known as synthetic lending, is a type of lending in which a borrower receives a digital token that is pegged to the value of an underlying asset rather than the asset itself. The borrower can use this token as collateral to borrow another digital asset. Here's an example: Let's say John wants to borrow $10,000 worth of ETH, but he doesn't own any ETH to put up as collateral. So instead, he can use synthetic lending…

Undercollateralized DeFi loans, also known as "uncollateralized" or "flash" loans, are a type of loan in the decentralized finance (DeFi) ecosystem that do not require the borrower to provide collateral. Instead, the smart contract governing the lending protocol secured the loan. The way they work is that the borrower can borrow a certain amount of a specific cryptocurrency, like Ethereum, for a very short period, usually one block or less. The borrower is then required to repay the loan, plus…

Collateralized DeFi loans are backed by collateral in the form of cryptocurrency. They work by allowing borrowers to put up a certain amount of crypto as collateral and borrow a smaller amount of money in return. The collateral is held in a smart contract and can be liquidated if the borrower fails to repay the loan. A practical example of a collateralized DeFi loan would be a borrower who wants to borrow $10,000 in stablecoins. In return, they would put…