The decentralized finance (DeFi) sector faced significant turmoil this week, marked by a series of high-profile incidents. Balancer, a leading DeFi protocol, suffered a major exploit resulting in a $128 million loss. Concurrently, Stream Finance, a stablecoin yield protocol, reported a $93 million loss and is preparing for bankruptcy.
Additionally, Moonwell experienced a $1 million attack, and Peapods saw its total value locked (TVL) plummet to zero due to liquidations. Stream Finance's xUSD stablecoin collapsed following a bank run triggered by transparency concerns, affecting lenders on platforms such as Euler, Morpho, and Silo. The fallout has left at least $284 million in DeFi debt tied to Stream Finance, much of which is expected to be unrecoverable.
DeFi Sector Hit by $128M Balancer Exploit and Stream Finance Collapse
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