Solana-based DeFi protocols have reopened after the $114M Mango Markets hack
On the 26th of October, Two Solana-based DeFi projects have reponed after the $114M lending protocol Mango Markets hack. The two who reopened their DeFi projects are Yield aggregator Tulip and stablecoin provider UXD. Tulip and UXD both announced on Twitter that they had recovered tokens from Mango Markets and would now continue their services.
Earlier this month, there was an exploit in Mango Markets, a Solana-based platform for trading tokens and lending, from which Tulip and UXD were also affected, but now they have recovered their tokens.
Solana is a famous blockchain, and it has its token SOL, which is the ninth biggest cryptocurrency by market cap. Solana is considered the best place to build DeFi projects because it allows developers to add peer-to-peer trading, borrowing, and lending features.
In this month’s Mango exploit, the hackers temporarily drove up the value of Mango Markets’ collateral due to a flaw in its system, took out loans from Mango’s treasury, and disappeared with the funds. It was not the first hack in the DeFi-based platform, as there were many other hacks in DeFi, which is considered hackers’ favorite place.
DeFi refers to tools and apps in the crypto market that make users’ work easy while trading in cryptocurrency. DeFi tool or app allows users to do trading quickly and easily without an intermediary. However, in traditional finance, a user needs checks and a mediator to take out a loan.
DeFi apps or tools are new and typically in the experimental condition, due to which DeFi-based platforms are prone to exploits. There are multiple examples of DeFi hacks, such as last year’s Cream Finance, a lending protocol that lost hundreds of millions in three separate hacks.
In the Mango Markets hack, UXD lost access to $19.9 million, while Tulip lost access to $2.5 million. Tulip and UXD are affected by this hack because they use Mango Markets to deposit funds.