In 2021, there has been a trend of decentralized finance (DeFi) protocols being breached. These exploits have led to over $10.5 billion worth of user funds being stolen through DeFi scams and theft in 2021.
Just days before its one-year anniversary, BadgerDAO, a Bitcoin-focused decentralized finance project built on the Ethereum blockchain, has become the latest DeFi protocol to fall victim to a network breach.
According to PeckShield, a blockchain data and security analytics company, a total of $120.3 million was stolen in the front-end attack of the BadgerDAO protocol.
Before the hack, Badger was ranked as the 23rd largest DeFi protocol on Ethereum. By the end of November, BadgerDAO had reached a TVL (total value locked) of $1.25 billion. According to Defipulse, the protocol’s TVL has now dropped to $787 million.
A Single User Lost $50 Million
In the breakdown of the network breach, PeckShield revealed that a single user had lost 896 BTC (worth roughly $50 million at the current price of Bitcoin at the time of writing) to the network breach.
On the Flipside
- Despite the repeated attacks on DeFi protocols, the sector is enjoying a period of increased attention from investors – over $275 billion is currently locked in DeFi protocols.
Why You Should Care
The recurring security issue is one challenge DeFi protocols must find a solution to, as they aim to attract mass adoption.