Sturdy Finance Reopens Stablecoin Market Despite Falling TVL

19. June 2023 admin 0 Comments

• Sturdy Finance, a DeFi protocol, re-opened its stablecoin market after an $800,000 security breach.
• The protocol offered a $100,000 reward to anyone who could facilitate an arrest or help recover the stolen funds.
• TVL levels have dropped from over $25 million in March 2023 to around $10 million.

Sturdy Finance Reopens Stablecoin Market

Sturdy Finance, a decentralized finance (DeFi) protocol, announced on June 16 that it has lifted the suspension on its stablecoin market and granted customers access to their assets again. This comes three days after an exploit resulted in the theft of 442 ethereum (ETH), equivalent to approximately $800,000 at the time.

Security Breach & Precautionary Measures

The exploit capitalized on a flawed pricing oracle and other factors to siphon funds from the platform. As a precautionary measure, the lending platform ceased trading across all markets on June 12 while investigations took place into how best to recover the stolen funds.

Recovering Stolen Funds

The DeFi protocol stated in a Medium post that it is collaborating with security experts specializing in on-chain analysis as well as law enforcement agencies worldwide to gather relevant information about the incident and reclaim the stolen funds. To incentivize this process of recovery, they have extended a reward of $100,000 to anyone – including the hacker – who can assist in facilitating an arrest or recovering any remaining funds that have yet to be returned.

Falling TVL Despite Reopening Markets

Despite having reopened its stablecoin markets once again, Sturdy Finance’s total value locked (TVL) continues to decline according to data from DeFiLlama which shows that their levels are now below what they were back in March 2023 when TVL was above $25 million.

Conclusion

Cybercriminals continue to devise increasingly sophisticated techniques for stealing cryptocurrency from users and exchanges alike despite protocols like Sturdy Finance offering rewards for assistance when investigating such incidents. It remains to be seen whether their efforts will be successful in recovering any of the lost funds or preventing similar breaches from happening again in future.