Largest DeFi Hack Yet? BadgerDAO Hack Results In Loss Of $120M+

There are high ceilings and low floors when it comes to crypto at times. Another hack came to life this week, and early reports have stated that the hack was a front-end compromise that led to users being tricked into approving unwanted transactions.

The news comes after a $35M DeFi hack of the Vee Finance protocol in recent months, and our team at NewsBTC reported around mid-year that crypto hacks and fraud were on pace for a record year.

This week’s BadgerDAO compromise is one of DeFi’s biggest yet.

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BadgerDAO Hack: What We Know

The protocol cited “reports of unauthorized withdrawals of user funds” on late Wednesday, and proceeded to pause all smart contracts on the protocol:

The BadgerDAO Token (BADGER), suffered a roughly 20% drop following the news of the hack. The platform is geared towards earning yield on bitcoin through various vaults.

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Blockchain auditing firm PeckShield reported in the early hours on Thursday that the loss was north of $120M, spanning across over 2 BTC and over 150 ETH and going all the way across. However, a variety of assets were compromised during the hack. There were several big wallet losses, including a $5M swoop in one transaction. PeckShield has also released a list of transactions of the hacked funds, but also in the early Thursday hours stated that it “look(s) like good progress has been made. Fingers crossed!”

All things considered, the BADGER coin has held up relatively strong in light of this week's hack. | Source: BADGER-USD on

Related Reading | Cardano Records Over 20 Million Transactions Ahead Of DEX Launches

Backlash & The Bigger Picture

As to be expected, the community reception to this news was less than ideal. Many Twitter replies from users noted their heartbreak from loss of funds. Some users even went on to suggest that the hack was a rug, given that it was seemingly a front-end attack.

Some further speculation came around a loss of funds from CeFi platform Celsius Network. However, thus far, the notes around Celsius seem to be only rumors with little substance. Only time will tell if more firm details come to light, or if Celsius makes a statement around the rumors.

Furthermore, many community members noted that the protocol “pausing” the smart contracts – as sensical as it is to protect user funds – goes against the principles of decentralization.

The continued emergence of insurance programs should bode well for DeFi in general. Our team at NewsBTC wishes only the best for the BadgerDAO protocol and it’s users.

Related Reading | Bitcoin And Omicron: Is Another Black Swan Brewing?

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The writer of this content is not associated or affiliated with any of the parties mentioned in this article. This is not financial advice.


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Index Coop to include BadgerDAO in DPI DeFi index from August

BADGER, the governance token of Ethereum-powered Bitcoin yield protocol, BadgerDAO, will be included in Index Coop’s DeFiPulse Index (DPI) token from August.

Index Coop announced the news on June 26, noting BADGER’s inclusion would be pushed back by one month due to prioritizing other upgrades.

The DPI token is a market cap-weighted index spanning the 10-most popular Ethereum-based DeFi tokens listed on decentralized finance data aggregator, DeFiPulse. 

The DPI index token rebalances on the first day of every month, adjusting allocations according to supply and price data provided by CoinGecko. Tokens will not be allocated a weighting higher than 25% during rebalancing.

As of this writing, UNI has the largest allocation in the DPI Index with roughly 26.5%, followed by AAVE with 18.4%, MKR with 13.5%, and COMP with 9.3%.

SUSHI, YFI, and SNX each have allocations of between 7% and 8.6%, while LRC, REN, KNC, and BAL are weighted between 1.2% and 2.4%. CREAM, FARM, and MTA represent less than 1% of the index each.

The index excludes wrapped tokens, synthetic assets, tokenized derived, tokens that are tied to physical assets, and tokens that represent ownership claims to other tokens.

Related: Overexposed: DeFi indexes aren’t as diversified as you think

DPI has shed nearly two-thirds of its value over roughly six weeks, tanking from a May 12 all-time high of $656.49 to last change hands for $234.

Despite suffering a heavy drawdown amid the recent crypto market crash, DPI is still up more than 300% from its November 2020 low of $57.20.