Will Interest in DeFi Continue to Grow Despite Balancer Hack?
Despite most cryptocurrencies being in the red, Bancor (BNT)
has managed to gain 10% in 24 hours bringing its price to $1.06 currently. On a
7-day chart BNT managed to gain 20% The DeFi DEX token has had a pretty amazing
month this June with its price nearly doubling from $0.62 to its current price.
Following its price rise, Bancor reached the rank of #80 on Coinmarketcap.com
Gearing Up Towards Bancor V2
Many within the DeFi space are looking forward to the anticipated launch of Bancor V2 which is due soon. Additionally, part of the excitement that is boosting Bancor is its surprising and long list of partnerships and integrations. This includes Chainlink (LINK), Everpedia (IQ), and most recently Kyber (KNC) which was announced earlier this week.
🏊♂ We're thrilled to announce @KyberNetwork's $KNC as a #BancorV2 launch pool! 🏊♂— Bancor (@Bancor) June 24, 2020
The pool will use @Chainlink’s $KNC / $ETH price oracle & enable KNC holders to provide liquidity & earn a share of KNC swap fees while maintaining 💯% exposure to KNC: https://t.co/uB9k7gM0KZ $BNT
Earlier today Balancer (BAL) was hacked after a vulnerability was exploited. Apparently a 'flash loan' was taken which later facilitated multiple token swaps which effectively drained their asset-pool. After the loan was repaid the hackers made of with $500,000 in Ethereum.
While some have point out that this is not the first DeFi hack, exchange hacks also occur from time to time. Additionally the amount taken by the hackers seems to be much smaller than exchange hacks which usually reach millions.
Regardless, it seems that the Balancer hack has had very little effect on DeFi as most tokens are growing in value.
Should the lessons of the hack be learned by the different technical teams behind DeFi tokens, it will reduce the algorithmic risk associated with DeFi. With regular audits preferably conducted by different sources, DeFi could be a robust and reliable competitor to traditional finance, and Bancor could be a big part of that future.
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Written by Jonathan Ganor
Writer & cryptocurrency aficionado