$6.5 Million Lost In Latest Base-Native DeFi Protocol Rug Pull

Magnate Finance, a DeFi lending protocol on the Base network, conducted a rug pull, stealing $6.4 million worth of assets from its users, marking the third rug pull by the Base network developers and resulting in a total loss of $16.7 million, while also facing other negative incidents such as hacks and thefts.

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Relevant topic timeline:

8/25/2023

Magnate Finance on Base rug-pulls users of $6.5M, as predicted by on-chain sleuth

Magnate Finance, a lending and borrowing platform on Coinbase's layer-2 protocol, Base, rug-pulled its users of $6.5 million in an exit scam after deleting its Telegram channel, website, and social media accounts, manipulating the price oracle, and removing all assets, leading to the collapse of the $6.4 million of total value locked in the protocol.

8/31/2023

Why DeFi’s Woes May Be Existential

Hackers have targeted decentralized finance (DeFi) protocols almost 500 times since 2019, stealing a total of $6 billion, highlighting the vulnerabilities of the smart contracts that underpin DeFi platforms. The recent surge in hacks, along with declining market share and increasing interest rates, has led to the closure of several platforms and calls for regulations to prevent money laundering and enhance security measures.