• Decentralized finance (DeFi) platform Euler Finance suffered a flash loan attack resulting in the loss of over $196 million.
• USD Coin (USDC) depegging due to the collapse of Silicon Valley Bank led to investors shifting funds from centralized and decentralized exchanges.
• MakerDAO proposed an emergency proposal to increase its holdings of United States Treasury bonds while MetaMask introduced new features with enhanced control to ensure privacy.
Euler Finance Flash Loan Attack
Decentralized finance (DeFi) platform Euler Finance suffered a flash loan attack this week, resulting in the loss of over $196 million — the biggest hack in 2023 so far. The attacker used a multichain bridge to transfer the funds from BNB Smart Chain to Ethereum. This attack follows the deflation attack one month ago.
USD Coin Depegging & Exchange Flows
The collapse of Silicon Valley Bank caused USD Coin (USDC) depegging which resulted in investor flows exiting centralized and decentralized exchanges. According to Chainalysis, hourly outflows from CEXs spiked to over $300 million on March 11th as users shifted their funds into DEXs and loaded up on USDC.
MakerDAO Emergency Proposal & MetaMask Enhancements
In response, MakerDAO proposed an emergency proposal aiming to diversify its Dai (DAI) stablecoin’s collateral exposure by increasing its holdings of United States Treasury bonds by 150%. Additionally, MetaMask introduced new features with enhanced control that allow users to manage which servers can receive their IP address in order to avoid privacy concerns.
Positive Sentiment Boosting DeFi Market
The DeFi market had another bullish week owing to growing positive sentiment surrounding major bank runs in the United States. Most of the top 100 DeFi tokens registered double-digit growth last week, with many tokens touching new multi-month highs.
This past week was dominated by news about Euler Finance’s flash loan attack and USD Coin depegging due to Silicon Valley Bank’s collapse. In response, MakerDAO proposed an emergency proposal and MetaMask introduced enhancements for better user control and privacy protection. Moreover, this news had a positive effect on DeFi tokens as they registered double-digit growth last week amid positive sentiment surrounding major bank runs in the US