'DeFi is dead': the crypto community rushes after the biggest hack of this year that exposes contagion risks Developers and operators warn about structural risks as a cross-chain exploitation generates fear and causes billions to flee from the platforms #DeFi:
A $292 million exploit of the rsETH token from Kelp DAO triggered a widespread liquidity crisis in DeFi, causing significant withdrawals from major lending platforms, including $AAVE .
Developers claim that the hack originated due to an incorrect configuration of cross-chain verification in the LayerZero-based infrastructure, exposing how flexible 'modular' security, without solid minimum standards, can create systemic risk.
“The rsETH hack is leading to withdrawals across all lending protocols, even in Solana and in unaffected protocols,” 0xngmi said in a post on Sunday, pointing out significant outflows that include “Aave: -$6.2 billion (-23%) in net inflows” and smaller but notable decreases in Morpho, Sky, and JupLend. rsETH is the restaked ether from the Kelp DAO liquid restaking protocol and is a Liquid Restaking Token (LRT) that allows users to earn rewards for staking and restaking ether while keeping their assets liquid, even when they are locked in staking. $ETH
RaveDAO denies manipulation while #Binance and Bitget investigate the trading activity of $RAVE. $RAVE RaveDAO denies participation in the rise and fall of the RAVE token while Binance and Bitget launch investigations into alleged market manipulation.
RaveDAO has denied any role in the recent sharp rise and fall of its token $RAVE , while major cryptocurrency exchanges open investigations into trading activity following accusations of market manipulation.
In a thread posted on X, the project stated that it was not "involved in, nor responsible for, the recent price action," responding to the growing attention after RAVE rose from approximately $0.25 to nearly $28 in just a few days before falling more than 80%.
The denial comes as on-chain investigator ZachXBT accused the project of orchestrating a pump-and-dump scheme, pointing out concentrated token holdings and suspicious trading flows. He claimed that more than 90% of the token supply may be controlled by insiders, urging exchanges to take action.
Both Binance and Bitget confirmed that they are reviewing the situation. "We are investigating," wrote Binance CEO Richard Teng in a message, while Bitget CEO Gracy Chen said that the exchange had "initiated an investigation" into RAVE's trading activity.
RaveDAO plans token sales to fund growth
RaveDAO also outlined plans to sell portions of unlocked tokens to fund operations, marketing, and hiring. The team stated that it is exploring "price or performance-triggered lockups" to better align incentives.
"Building a movement requires resources," wrote the project, adding that it seeks to do so "in a sustainable and transparent manner."
RaveDAO is a Web3-based entertainment project that combines electronic music events with technology #blockchain.
Bitcoin's price fell to $75,000 as the closure of the Hormuz Strait again focuses attention on oil.
Bitcoin heralds a new chaos in the market as it seems that the war between the United States and Iran has returned, including the closure of the oil route through the Hormuz Strait.
Bitcoin (BTC) sought to protect $75,000 in the weekly close on Sunday as the cryptocurrency navigated uncertainty over the war between the United States and Iran.
Key points:
Bitcoin's price action has plunged from ten-week highs due to fears that the war between the United States and Iran has returned with full force. Iran closes the Hormuz Strait, raising the risk of a rise in oil prices once again. The price action of BTC faces ongoing resistance at a 21-week trendline in the weekly close. Bitcoin retreats from highs as fears of the war between the United States and Iran return.
TradingView data showed that pressure on BTC's price came back into play after a trip to ten-week highs of $78,400 on Friday.$BTC