DeFi platform’s total value locked plunges 75% after hack
Nemo, a yield protocol built on the Sui blockchain, suffered a $2.4 million exploit on Monday, becoming the latest decentralized finance (DeFi) platform to fall victim to hackers. The attacker drained funds in USDC, highlighting ongoing security risks across the DeFi ecosystem.
According to blockchain security firm PeckShield, the attacker stole $2.4 million worth of USDC before bridging the tokens from Arbitrum to Ethereum. The exploit underscores vulnerabilities in cross-chain mechanisms, which continue to be a major attack vector in the DeFi space.
Impact on Nemo protocol
Nemo is a yield optimization platform that enables users to tokenize yield by splitting staked assets into Principal Tokens (PT) and Yield Tokens (YT), which can then be traded, hedged, or used for speculation.
Following the hack, total value locked (TVL) on Nemo collapsed from over $6 million to $1.53 million, according to DeFiLlama. This represents a 75% decline in locked funds, reflecting shaken investor confidence in the platform.
Broader DeFi security concerns
Despite increasing institutional adoption of blockchain assets, DeFi exploits remain a persistent challenge. Attacks on liquidity pools, cross-chain bridges, and yield protocols have cost users billions over the past few years, raising questions about the security trade-offs of decentralized systems.
The Nemo exploit highlights the continuing risks of DeFi participation, especially in emerging ecosystems like Sui. As developers work to patch vulnerabilities, the incident serves as another reminder that even innovative yield strategies remain highly exposed to security breaches.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.