DeFi Sparks New Investments Despite Turbulent Market: Finance Redefined
The prolonged crypto winter aided by the collapse of FTX has kept investors from backing a new protocol that merges DeFi and the foreign exchange market. A new Cosmos blockchain-based DeFi protocol has caught the eyes of investors who have put $10 million behind the project.
Llama and Gauntlet Propose Using Gauntlet’s Insolvency Refund and Aave’s Treasury To Cover the Excess Debt
Decide on a path forward to repay the excess debt in the CRV market (currently ~$1.6M USD, dependent on CRV’s token price).
Llama and Gauntlet Submit Proposal to Cover $1.6 Million in Bad Debt on Aave
DeFi management platform Llama and DeFi risk management outfit Gauntlet have submitted a governance proposal on Aave to cover the DeFi lender’s $1.6 million bad debt brought on by Tuesday’s short attempt linked to Mango Markets exploiter Avraham Eisenberg.
AAVE Endures This Exploit With Minor Injuries, but What Explains the 40% Drop
The cryptocurrency market has taken a beating recently, and many projects are struggling due to low liquidity. An attempt was made to exploit <a href="https://ambcrypto.com/aave-relies-on-eth-whales-but-is-it-enough-for-a-sizable-rally-this-week/">Aave</a>, which would have been a major setback for the crypto space. In particular, the Defi sector. Aave claimed to have suffered only minor damage as a result of the exploit’s failure.
Design Flaw Left Liquidity Protocol Aave With $1.6 Million in Bad Debt
Aave may have avoided a crisis for now, but changes to the protocol may be necessary to prevent a similar exploit.
Mango Markets Hacker Allegedly Feigns Curve Short Attack To Exploit Aave
As described by analysts at Lookonchain on Nov. 22, tokens of decentralized exchange Curve Finance (CRV) appear to have suffered a major <a href="https://twitter.com/lookonchain/status/1595022256018702339" target="_blank">short-seller attack</a>. According to Lookonchain, ponzishorter.eth, an address associated with <a href="https://cointelegraph.com/news/mango-markets-hacker-proposes-steep-settlement">Mango Markets exploiter</a> Avraham Eisenberg, first swapped 40 million USD Coin (USDC) on Nov. 13 into decentralized finance protocol Aave to borrow CRV for selling.
AAVE Trying To Break Out After Week of Stalemate
The week of rangebound trading on AAVE might have pushed some investors away from the cryptocurrency, but, thankfully, bulls have found some power to push the value of the asset above the trading range. In the last 24 hours, AAVE has shown a slightly better performance than the other part of the cryptocurrency market. Unfortunately, there have been no fundamental factors that would suggest that AAVE has an upper hand against other assets, which is why the movement we are seeing right now is purely speculative.
