On November 28, the decentralized finance (DeFi) platforms Aerodrome and Velodrome experienced front-end hacks on both platforms and took to social media to warn users.
Both platforms issued statements on X (previously Twitter) that their user interfaces had been compromised and requested that users refrain from interacting with the platforms during the ongoing investigation.
Approximately $40,000 in funds, according to one X user, are reportedly in transit and can be traced back to two distinct wallet addresses.
Aerodrome has a total locked value of $63.59 million, while Velodrome has $139.73 million, according to DefiLlama.
Aerodrome is a product of the automated market maker (AMM) and developer Velodrome Finance. It became one of the network’s leading initiatives in TVL almost immediately after its late-August launch and Base protocol foundation.
The platform functions, among other things, by permitting users to deposit liquidity in return for the acquisition of its native token, AERO. It garnered attention earlier in the year when it earned $150 million in a single day, enabling Base to surpass the Solana network with a nearly $400 million TVL.
The DeFi sector of the cryptocurrency industry has demonstrated a heightened vulnerability to significant financial losses caused by malicious actors.
Based on data from Chainalysis, the DeFi sector experienced breaches accounting for more than 80% of the total hacks in the cryptocurrency industry in 2022, resulting in losses exceeding $3 billion. Footprint Analytics data revealed that DeFi constituted 62% of losses during the initial quarter of 2023.
DeFi Llama recently reported that non-DeFi crypto firms and DeFi protocols had lost $735 million in 2023 due to 69 hacks. The most significant attack, which occurred in March and cost Euler Finance $197 million, targeted the DeFi protocol Euler Finance.
