The DeFi ecosystem has been facing an increasing number of hacks, but there is some good news on the horizon.
A smart contract developer has introduced a new Ethereum request for comment (ERC) proposal that could potentially reduce losses from hacks by 70%.
This proposal suggests the implementation of a circuit breaker, which would help prevent suspiciously large token outflows from DeFi protocols.
However, the security concerns continue as certain Multichain contracts on Ethereum experienced significant withdrawals, raising fears of a possible exploit.
READ MORE: BarnBridge DAO Halts Operations Amidst SEC Investigation
The Poly Network, a cross-chain bridge platform, was also targeted by hackers due to a compromise in a private key.
This exploit affected 57 different crypto assets, prompting the platform to request users to withdraw their funds.
In a separate incident, the BarnBridge DAO, a decentralized autonomous organization, faced regulatory scrutiny from the United States Securities and Exchange Commission (SEC). As a result, members of the DAO were advised to halt all project-related activities.
Shifting gears to new developments, the decentralized social media protocol DeSo has offered a $1 million bounty for the creation of a Reddit competitor built on its native blockchain.
This initiative aims to foster innovation and competition within the decentralized social media space.
Taking a look at the market performance, the top 100 DeFi tokens had a mixed week.
While most tokens traded within a similar range as the previous week, a minor bearish correction was observed.
In summary, a new ERC proposal for a DeFi circuit breaker could potentially reduce losses from hacks by 70%.
However, the DeFi ecosystem continues to face security challenges, as demonstrated by recent exploits and regulatory scrutiny.
On a positive note, DeSo’s bounty program seeks to drive innovation in decentralized social media.
The overall performance of the DeFi market remained relatively stable, with the total value locked in DeFi protocols remaining below $50 billion.
