Popular crypto market maker and liquidity provider Wintermute has endured a devastating exploitation in DeFi operation. The protocol confirmed the development in a blog post on Tuesday. As revealed, the exploitation on Wintermute resulted into the loss of $160 million.
According to Wintermute CEO, Evgeny Gaevoy, the exploitation poses no impact on the network’s CeFi and OTC operations. He assured other companies and exchanges working with Wintermute of the safety of their funds. Meanwhile, Gaevoy announced the plan to halt operations on the network within the next few days.
As reported, the breach on Wintermute led to the exploitation of about 90 assets for a notional value of over $1 million. This indicates that a major sell-off will likely not appear in specific markets. According to the protocol, only assets with a notional value of more than $2.5 became ripped off. The CEO, in his statement promised to contact the affected teams.
In addition, Gaevoy stated that Wintermute remains solvent. This, according to him, means Wintermute seems ready to repay loans offered by its investors without halting its operation. He noted it is understandable for some lenders to start requesting their loans.
He added that the Wintermute remains financially stable, thus allowing its operations to run without hitches. This, as reported, is possible owing to the stability of CeFi market. With this, liquidity provision and market making to a centralized exchange and OTC trading remain intact.
Meanwhile, some whitehat hackers are now working to ensure investors recover part of their funds. Also, validators and miners are able to partially prevent stolen funds from moving on decentralized exchanges. In addition, stolen funds will likely be marked by centralized exchanges to prevent it from featuring on the market.
Hashflow onboarding Wintermute
Notably, the exploitation on Wintermute comes a few weeks after it was onboard by Hashflow. As reported, the protocol integrates significant liquidity and market efficiency to Hashflow due to its cumulative trading volumes of over $1.9 trillion. According to Hashflow Co-founder, Varun Kumar, Wintermute venture arm supported Hasflow’s mission as a key investor in its seed and Series A funding rounds.
Wintermute runs as a leading algorithmic trading firm. The protocol seems recognized as one of the largest players in digital assets markets. It reportedly records over $5bn trading volume daily. More so, the protocol promotes the trading of OTC with 350+ tokens. As of today, Wintermute avails liquidity across over 80 centralized and decentralized exchanges.