![Curve Finance to reimburse users, another DeFi hack, and ConsenSys launches L2: Finance Redefined Curve Finance to reimburse users, another DeFi hack, and ConsenSys launches L2: Finance Redefined](https://i0.wp.com/images.cointelegraph.com/images/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjMtMDgvZTFkZDk5ZWMtZWVhNy00YmVkLThkMTMtZDBhMTU3MmFjODYxLmpwZw==.jpg?fit=%2C&ssl=1)
Welcome to Finance Redefined, a weekly newsletter providing you with essential decentralized finance (DeFi) insights, designed to bring you the most important developments of the past week.
More than two weeks after Curve Finance was repeatedly attacked by mining pools, the DeFi protocol has assured hack victims that it is evaluating compensation for each affected user. Prior to this, exploiters returned 73% of stolen funds.
The DeFi ecosystem emerged from the Curve woes, only to face another set of vulnerabilities last week when Zunami Protocol’s stablecoin pool was exploited, resulting in a net loss of over $2 million. However, this week was also filled with optimistic developments, with ConsenSys completing the public launch of its zero-knowledge Ethereum Virtual Machine (zkEVM) Linea and bridging $26 million worth of Ethereum (ETH).
In another development, Fantom-based decentralized exchange SpiritSwap was rescued from shutdown by a last-minute community resolution.
Curve Finance vows to compensate users after $62M hack
Curve Finance has officially stated its intention to compensate users affected by the recent hack, which caused $62 million in damages. According to a post from the official X (formerly Twitter) account, the ongoing investigation is making progress and approximately 79% of the funds have been successfully recovered. The platform also said it would evaluate compensation for each affected user.
This assessment is designed to ensure a fair distribution of resources. The July 30 incident involved malicious actors exploiting a vulnerability in Curve Finance’s Vyper compiler release history.
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Zunami Protocol Confirms Stablecoin Pool Hacked, Estimated Loss of $2.1M
Decentralized finance protocol Zunami Protocol is advising users not to buy any Zunami Ether (zETH) or Zunami USD (UZD) stablecoins following an attack on its “zStables” pool on Curve Finance.
On Aug. 13, Zunami confirmed on X that its stablecoin pool had been attacked, adding that the collateral remained safe as it began investigating the potential breach.
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$26M ETH Bridge: ConsenSys Completes Public Launch of zkEVM Linea
ConsenSys has completed the launch of its Ethereum scaling Rollup Linea, attracting over 150 partners and providing over $26 million in ETH to date.
Linea will launch the alpha mainnet with selected partners in July 2023, allowing developers to migrate existing decentralized applications (DApps) from the Ethereum mainnet or other scaling solutions. zkEVM is a layer 2 scaling solution that provides lower transaction costs and higher throughput for DApps in the Ethereum ecosystem.
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Fantom DEX rescued at last minute after planned shutdown
SpiritSwap, the decentralized exchange (DEX) on Fantom, will no longer shut its doors in September as its treasury funds are trapped on troubled cross-chain protocol Multichain. In a community vote on Aug. 16, SpiritSwap users passed a resolution to transfer the project to Power, a Fantom-based non-fungible token platform and DEX. Power will deploy 200,000 USD tokens (USDC) to the SpiritSwap vault.
On Aug. 9, SpiritSwap said it would cease operations by Sept. 1 if it couldn’t find a team to take over after the multi-chain bug drained all of its funds. Interestingly, Power was also affected by the multichain fiasco, but only suffered “small” losses because its financial assets were not bridged to the multichain.
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DeFi Market Overview
Despite the late market turmoil, the total DeFi value locked in DeFi protocols has seen a bullish surge over the past week. The top 100 DeFi tokens by market cap had a bullish week, according to Cointelegraph Markets Pro and TradingView; however, losses late Thursday wiped out gains, sending most tokens down on weekly charts . The total value locked in DeFi protocols reached $49.8 billion for the first time in five months.
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Thanks for reading our roundup of the week’s most impactful DeFi developments. Join us next Friday for more stories, insights and education about this dynamically developing field.
Svlook