This Hedera Network Service Is Under Attack, TVL Drops by 65%
10 March 2023 - 5:00AM
NEWSBTC
The Hedera Network services are experiencing a critical moment with
an ongoing exploit that compromises the network’s tokens after
discovering irregularities affecting various Hedera dApps,
Liquidity Pool (LP) tokens, wrapped tokens, and their users. The
Hedera Foundation (HBAR) tweeted: We’ve noticed network
irregularities that are impacting various Hedera dApps and their
users.The Foundation is in communication with impacted partners.
We’re monitoring and working to help resolve the issue. Please
standby for more information. Related Reading: Bitcoin Dealt
Another Round Of Blows, Is The Bear Market Back? How The Exploit
Impacted The Hedera Network? Hedera is a fully open-source and
publicly distributed ledger that uses fast and secures hash graph
consensus. Hedera’s services include smart contracts based on
Solidity, an object-oriented programming language developed by the
Ethereum Network team specifically for constructing and designing
smart contracts on blockchain platforms. According to the
Decentralized Finance (DeFi) researcher, who goes by the pseudonym
DeFiIgnas, the ongoing exploit has targeted the decompilation
process in the Hedera network. In addition, bridged tokens have
been frozen by Hashport, the enterprise-grade public utility that
facilitates the movement of digital assets between distributed
networks. To ensure the safety and security of users, the
Hashport bridge has been temporarily paused so that users won’t be
able to access multi-chain transactions. As of this writing, the
exploit continues to affect the Hedera network. In addition, the
Hedera Foundation reported that it has been in contact with and
continues to communicate with affected partners as it monitors and
works to resolve the network security breach. dApps Total Value
Locked Dropping Fast The decentralized digital asset exchange
(DEX) Pangolin has reported that users are experiencing problems
withdrawing their funds from hashpart-related pools, as the various
tokens on the network are “paused,” as are all smart contracts, due
to the “outage” that the Hedera network is experiencing. As seen in
the chart above, the total value locked (TVL), which measures the
value of deposits and stakes in the dApps and the blockchain, is
falling rapidly for Hedera dApps. The TVL includes all coins
deposited in the features provided by the DeFi protocols, including
stakes, loans, and liquidity pools. Stader labs, which
supports six separate networks that allow users to deposit tokens
into liquid staking protocols, is the most affected by the current
exploit, suffering a 65.46% drop with a TVL of $32 million.
Related Reading: Altcoins At Underbought Levels Not Seen Since
Early January: Santiment The exploit has significantly impacted the
Hedera hashgraph token, highlighting the downtrend the hashgraph
has been experiencing since February, from a high of $0.0914 to the
$0.0589 level. Investigations by the network’s core team are
underway to identify the security breach of the smart contract
network and the cause and further impact on the tokens. The Hedera
Foundation concluded: The Hedera core team is actively
investigating the smart contract irregularity that has been
discovered. They are working directly with teams across the
DeFi ecosystem to determine the cause and potential impact. Updates
will be provided as they become available. Featured image from
Unsplash, chart from TradigView.com
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