Wormhole hack illustrates danger of DeFi cross-chain bridges
The second-largest decentralized finance hack to date brings about questions about the Solana ecosystem and cross-chain protocols. Solana has become one of the fastest-growing smart contract blockchain networks since it was first officially launched in March 2020. The total value locked (TVL) on decentralized finance (DeFi) protocols on the network grew from nearly $152 million in March 2021 to $8.08 billion at the time of writing, as per data from DefiLlama.Simultaneously, the network has also been subject to several network issues and outages. Most recently, the Wormhole token bridge was....
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Decentralized finance (DeFi) and cross-chain bridges have seen some of the highest growth in recent months. The crypto market has begun another recovery trend and its effects are reverberating through the entire industry. Cross-chain bridges which allow different blockchains to interact with one another, thereby allowing for trading between two blockchains, are in high demand. […]
During the last few months, cross-chain bridge technology has grown a great deal and users can now swap assets between a myriad of networks. Today, between eight different bridges there’s $7.6 billion total-value locked across these platforms.
Cross-Chain Bridges
There’s a decent quantity of cross-chain blockchain bridges these days and it has allowed users to do a variety of different decentralized finance (defi) techniques. Interestingly, a great deal of bridges connect to the Ethereum (ETH) network, as they have Ethereum Virtual Machine (EVM)....
Following the aftermath of the Terra blockchain fiasco, decentralized finance (defi) continues to feel the impact of the project’s fallout. During the last four days the total value locked (TVL) in defi has dropped 2.61% in value, and cross-chain bridges have lost roughly 20.3% during the last 30 days.
Value Locked in Cross Chain Bridge Tech Slips 20% Lower Than Last Month
Over $100 billion in USD value was recently removed from the total value locked (TVL) in defi and TVL statistics continue to slide. Four days ago, the TVL in defi was approximately $112.29 billion and....
Over $2.5 billion have been stolen from cross-chain bridges in the past two years. According to a new report by crypto data aggregator Token Terminal, approximately 50% of exploits in decentralized finance, or DeFi, occur on cross-chain bridges. In two years' time, more than $2.5 billion have been stolen by hackers from exploiting vulnerabilities on cross-chain bridges. The amount is enormous comparison to other security breaches, such as DeFi lending hacks ($718 million) and decentralized exchange exploits ($362 million) in that period. Bridge exploits account for ~50% of all DeFi....
“Users will soon find Wormhole integrated into the backend of the Injective Bridge whereby transferring assets from distinct EVM chains or Solana can be done with the click of a button,” Injective Labs stated. Decentralized finance (DeFi) protocol Injective (INJ) has partnered with Wormhole to integrate “10 new blockchains” to its network. Injective is a Cosmos layer-2 decentralized exchange (DEX) that offers derivatives, token swaps and sports betting prediction markets. It is also focused on interoperability via cross-chain bridging, and currently supports digital assets from Ethereum,....