The lending protocol ‘Mango Markets’ on Solana faced an exploit that drained $100M out of the protocol – another blow for DeFi this week after the massive Binance Smart Chain hack.
Decentralized finance is a miraculous wealth creator but is lately facing a series of exploits that isn’t boding well for its reputation. However, there is more to DeFi than lending protocols, which make up most of the hack victims. As a result, investors are increasingly eyeing audited and secure projects that offer different tokenomics, such as Uniglo.io.
Lending Protocols – Curse and blessing
Lending protocols and swaps are partially the reason for the last major bull run, which saw Bitcoin rallying to over $65,000. The ability to leverage positions is powerful but comes with tremendous risk.
Due to that risk, the rivaling lending protocol ‘Solend’ had to bail out an overleveraged whale with colossal exposure during the last downtrend, together with Mango Markets. This bailout led the hacker to hijack $100M from Mango Markets and afterward propose to send back the funds if Mango Markets would pay back its stakeholders the money owed due to the bailout, which he calls ‘Bad debt.’
While this could be seen as a noble service to the DeFi community, it is still illegal, and therefore the hacker stipulated that no charges against him were to be filed.
The increasing amount of hacks targeting lending protocols leads many investors to look for projects offering sufficient passive income but less risk.
Uniglo.io – Audited by Paladin Blockchain Sec
GLO is at the center of the decentralized autonomous organization (or short DAO) Uniglo and offers holders exposure to digital assets such as cryptocurrencies, digitized gold, and NFTs.
To ensure investors’ safety, the team audited the smart contract of Uniglo pre-launch. This is especially important for safety reasons but also to test the Ethereum-based protocol’s unique ‘Ultra Burn’ feature, which decimates the supply of the token non-stop and ultimately raises the value and floor price.
Final thoughts
Lending protocols accelerated the last bull run and have their place within decentralized finance, but there is more to it. Unique projects like Uniglo.io, which emphasize safety and balance it with viable returns, deserve to be looked at. GLO is currently in presale and plans to launch on the 19th of November.
Learn More Here:
Join Presale: https://presale.uniglo.io/register
Website: https://uniglo.io
Telegram: https://t.me/GloFoundation
Discord: https://discord.gg/a38KRnjQvW
Twitter: https://twitter.com/GloFoundation1
