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    Home » Crypto News » Chinese DeFi Protocol dForce Reportedly Loses $25 Million Of Its Total Locked Value In An Attack

    Chinese DeFi Protocol dForce Reportedly Loses $25 Million Of Its Total Locked Value In An Attack

    Author: George Georgiev

    Last Updated Jun 24, 2020 @ 14:31

    dForce, a Chinese decentralized finance (DeFi) protocol that is backed by Multicoin Capital, has reportedly been exploited. According to a popular DeFi monitoring resource, the total value locked (in USD) in dForce, was reduced from around $25 million to almost nothing in a matter of hours.

    DeFi Lending Protocol Exploited

    A well-known DeFi protocol, dForce Network, was reportedly exploited recently. Its lending solution, Lendf.Me, representing an open-source money market protocol, was attacked. According to a local Chinese outlet, the team has already “located the problem and advised all users to stop depositing assets in the loan agreement on the web page.” The attack happened on block 9989681.

    On-chain data reveals that the attacker has transferred the assets to two other platforms, namely, Compound and Aave.

    Furthermore, information from the popular DeFi data monitoring resource DeFi Pulse reveals that the total value locked (TVL) in USD in dForce was dramatically reduced from $25 million to about $10,000.

    defipulse
    Total Locked Value on dForce. Source: DeFi Pulse

    Meanwhile, Mindao Yang, the founder of dForce, said in a Telegram message that the lending platform is currently paused as they continue to investigate the issue. He advised users not to deposit any funds through it.

    Interestingly enough, the bad news comes just a few days after dForce closed a successful financing round of $1.5 million led by Multicoin Capital, which also included co-investors China Merchant Bank International and Huobi Capital.

    The Risks of DeFi

    While decentralized finance is a concept that undoubtedly poses a lot of potential benefits, it’s essential to recognize that it’s still a very nascent field.

    Just a couple of months ago, CryptoPotato reported that almost $1 million worth of ETH was compromised following two attacks on another DeFi protocol called bZx.

    Last year during Ethereal Summit, Vitalik Buterin discussed DeFi protocols and outlined a lot of their benefits. However, he also warned that people shouldn’t be encouraged to put their money into them because they are yet untested and have a non-zero chance of failure.

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    Read more on: DeFi Security

    About The Author

    George Georgiev View more posts by this author

    Georgi Georgiev is CryptoPotato's editor-in-chief and a seasoned writer with over two years of experience writing about blockchain and cryptocurrencies. Georgi's passion for Bitcoin and cryptocurrencies bloomed in late 2016 and he hasn't looked back since. Crypto’s technological and economic implications are what interest him most, and he has one eye turned to the market whenever he’s not sleeping. Contact George: LinkedIn

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