According to Cointelegraph, decentralized finance (DeFi) platforms Aerodrome and Velodrome announced on November 28 that their front ends had been compromised. Both platforms urged users not to interact with them while investigations are ongoing. One user reported that approximately $40,000 in funds were traced back to two different wallet addresses, potentially indicating stolen funds.
Aerodrome, a product of developer Velodrome Finance, is an automated market maker (AMM) built on the Base protocol. It quickly became one of the network's top projects in terms of total locked value (TVL), with DefiLlama reporting a TVL of $63.59 million for Aerodrome and $139.73 million for Velodrome. The platform allows users to deposit liquidity in exchange for earning its native token, AERO.
The DeFi space has been particularly vulnerable to hacks and losses within the crypto industry. In 2022, over 80% of the entire crypto industry's hacks occurred in the DeFi space, with losses totaling more than $3 billion. Data from Footprint Analytics revealed that in the first quarter of 2023, DeFi accounted for 62% of losses. DeFi Llama recently reported that in 2023, DeFi protocols and non-DeFi-related crypto firms lost $735 million across 69 hacks, with Euler Finance suffering the most significant hack in March, resulting in a $197 million loss.