Security Incident at Ethena Labs Results in $290k Loss

PeckShield analysts recently reported a security incident involving the Ethena Labs project on March 29. The vulnerability that led to the exploit remains unknown, resulting in a loss of 480 BNB, valued at approximately $290,000.

In response to the incident, some users speculated that it was related to the creation of a fake ENA token on the BNB network. While the Ethena Labs team did not provide a comment on the issue, they recently announced the project’s launch on Binance Launchpool.

Earlier this year, Ethena Labs completed a $14 million strategic round and introduced the delta-neutral stablecoin USDe. This move propelled the Ethena protocol to the top spot in terms of profitability among decentralized applications (dapps), offering users a 67.2% APR when staking in the USDe stablecoin.

Despite the success of the USDe stablecoin, concerns were raised within the community regarding its initial yield of 27.6% per annum. Some users compared this to the yield of the algorithmic stablecoin TerraUSD (UST), which was announced at 20% per annum.

Overall, the Ethena Labs project continues to make waves in the cryptocurrency space, attracting attention for its innovative approach to decentralized finance. Stay tuned to Global Crypto News for more updates on this developing story.