The non-fungible token [NFT] plus decentralized finance [DeFi] protocol, Dego finance was hacked on Thursday. The project was recently launched and is building on multiple blockchains like Binance Smart Chain [BSC], Polkadot, and Ethereum.
It allows blockchain projects to acquire more users, distribute tokens, and develop more diverse NFT applications. However, on 10th February, the team at Dego finance announced finding addresses that provided liquidity on UniSwap and PancakeSwap were hacked.
The team added,
Apart from warning the abovementioned exchanges, Dego finance asked other exchanges too to close deposits on the platform which included, BitMart, Bithumb Global, Poloniex, Uniswap, PancakeSwap, etc.
“So that the hacker cannot make any damage. We’ll keep all stakeholders updated on the latest developments, as well as talk to reputable security teams on how to identify the hacker and retrieve loss.
We would ask the hacker to come forward and communicate.”
Following the attack, the DEGO spot market was seeing tremendous volatility. Right after the attack, the token dropped by over 20% in an hour to $3.47. However, the traders were making use of the dip and immediately bought more of the token as it recovered by 15%, at the time of press. It was currently exchanging hands at $4.
What’s Dego Finance?
As noted above, Dego finance was an NFT plus DeFi protocol. It serves two functions: i) Acting as an independent and open NFT system, and ii) It is building an NFT protocol to provide a cross-chain Layer-2 infrastructure.
These functions have invited tremendous interest from users across blockchains. Along with the use cases, the platform has DEGO NFT suite that offered a variety of products that helped in maintaining the lifestyle of the NFTs. Meanwhile, the NFT foundry mint suite had rare attributes and grades wherein the Finance NFTS’s like ERC-20, DEGO, or BEP-20 tokens were backed by token deposits when being minted. These deposited tokens are then decomposed to be released.