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The past month has seen a series of hacks in the crypto sector. The latest hack was on hardware wallets, where 15,000 Solana wallets were affected, resulting in a loss of around $4.6 million.
Aave proposal removes Fantom integration
One of the most persistent hacks in the crypto space is on DeFi bridges. Bridges are an essential infrastructure that allows users to transfer funds between blockchains. For example, the native assets on one network like Avalanche can exist on another like Harmony without needing a bridge.
Given this large amount of money stolen from these blockchain bridges, one DeFi protocol is taking steps to lower the risks from the sector. A recent proposal on the Aave protocol suggested that the community suspends all Fantom-based integration.
Your capital is at risk.
The proposal from the Aave community says that halting Fantom integration would protect users by suspending the ability to deposit and borrow assets through the Aave V3 market on the Fantom blockchain. At the same time, Aave supported debt repayment, liquidations, withdrawals, and interest rate changes.
The proposal says that Fantom does not contribute much in fees for the Aave treasury. It says that the Aave V3 market did not record much interest, with market size of $9 million and $2.4 million in open borrowing position. It generated an average of $300 daily fees for the network, translating to $30 daily fees for the Aave treasury. It adds that users would lose everything if the Fantom bridge were hacked.
Hacks on blockchain bridges
The proponents of the crypto community believe that the future is multi-chain. However, the future is now not so certain, given the massive hacks happening in the sector. The latest hack occurred on the Nomad bridge, where around $190 million worth of cryptocurrencies were stolen.
However, there have been many other attacks on blockchain bridges, such as the Axie Infinity Ronin bridge, where $622 worth of crypto assets were stolen earlier this year. In February, the Solana Wormhole bridge was also attacked, and around $320 million was drained. Another hack happened on a bridge between Harmony and Ethereum, where $100 million worth of crypto assets were stolen.
Over $1 billion worth of cryptocurrencies have been lost on hacks on blockchain bridges this year. However, a report by Chainalysis estimates that 13 bridge hacks have happened this year alone, and the amount lost is around $2 billion.
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