Gnosis Pay has suffered a security exploit, and co-founder Martin Koppelmann has promised that Gnosis will cover all user losses. Containment efforts are currently underway. This is another major security challenge for the Gnosis ecosystem, following similar attacks on cross-chain protocols like LayerZero. The Gnosis team is investigating the root cause and taking measures to prevent further losses.
Crypto exchange Kraken has expanded its Earn product suite with Bitcoin Vault. The product routes user BTC deposits into DeFi lending protocols including Aave and Morpho to generate BTC-denominated rewards.
OpenZeppelin founder says he now considers the entire DeFi sector unsafe, sparking industry debate.
OKX’s Layer-2 network X Layer has launched Exchange OS, moving core exchange functions — matching, margining, liquidation, and settlement — to the protocol layer, allowing users to create custom crypto trading markets.
[Brief] StablR Stablecoin Hit by $13.5M Exploit, Tokens Depeg StablR’s EURR and USDR stablecoins suffered a severe depeg after an attacker exploited a multisig wallet vulnerability to mint approximately $13.5 million in unbacked tokens. EURR fell to $0.85 and USDR dropped as low as $0.40. According to TheBlock, the attacker dumped roughly $10.4 million in face value on decentralized exchanges. The project team is working on an emergency fix.
Flare and D’CENT have partnered to launch XRP yield vault hardware wallet integration, enabling users to securely participate in XRP yield services through hardware wallets.
[Flash] Lombard Joins LayerZero Exodus, $4B Assets Move to Chainlink Bridge DeFi protocol Lombard has announced its participation in the ongoing LayerZero asset migration, moving approximately $4 billion in assets to Chainlink’s cross-chain bridge solution. The move reflects continued capital outflows from the LayerZero ecosystem, while Chainlink’s bridging services are gaining favor among institutional-grade projects.
Kelp DAO and Aave will resume rsETH operations following a $292 million exploit. Recovery is progressing.
Arbitrum DAO Approves $70M ETH Release for Kelp DAO Recovery Arbitrum DAO has voted to approve the release of approximately $70 million in ETH to recover funds related to the Kelp DAO incident. However, a May 1 court order restricted Arbitrum DAO from moving the recovered funds, prompting Aave to file an emergency application to lift the restrictions. This marks an increasingly complex interaction between decentralized governance and the judicial system. The Arbitrum community had previously voted to recover funds transferred due to a Kelp DAO bridge vulnerability, but legal uncertainty has stalled the transfer process. ...
Leading DeFi protocol Aave has announced a comprehensive overhaul of its collateral and listing standards in response to risk management issues exposed by the recent KelpDAO exploit. As one of the largest lending protocols in DeFi, Aave’s move aims to strengthen protocol security and prevent similar incidents. The reforms are expected to impact collateral parameters for multiple listed assets.