Two decentralized finance (DeFi) platforms, Aerodrome and Velodrome, encountered front-end attacks on November 28, as reported by both platforms via X (formerly Twitter). Both platforms cautioned users against engaging with their front-ends while investigations into the security breaches were underway. An X user disclosed that an estimated $40,000 in funds had been observed moving and could be traced back to two distinct wallet addresses.
Based on DefiLlama data, Aerodrome currently holds a total value locked (TVL) of $63.59 million, while Velodrome boasts a TVL of $139.73 million. Aerodrome, a creation of developer Velodrome Finance, operates as an automated market maker (AMM) and was launched in late August. Leveraging the Base protocol, it swiftly ascended to a prominent position within the industry, becoming one of the leading projects in terms of network TVL.
Aerodrome allows users to deposit liquidity in exchange for its native token AERO, alongside various other functionalities. Earlier this year, it garnered attention by accumulating a staggering $150 million in a single day, positioning Base ahead of the Solana network with an approximate TVL of $400 million.
The DeFi sector within the cryptocurrency industry has been notably susceptible to substantial losses stemming from cyberattacks. Chainalysis data highlighted that over 80% of the hacks witnessed throughout the entire cryptocurrency industry in 2022 originated from the DeFi field, resulting in losses surpassing $3 billion. Footprint Analytics reported that DeFi accounted for 62% of losses in the initial quarter of 2023. Moreover, recent figures from DeFi Llama revealed that DeFi protocols and non-DeFi cryptocurrency entities suffered a collective loss of $735 million from 69 hacks in 2023. Notably, DeFi protocol Euler Finance faced the most significant hack in March, incurring a loss of $197 million.
