Cross-Chain Protocol Nomad is one of several bridges deployed in Milcomeda
a week ago, Nomad The hack of the cross-chain bridge was described as “one of the most chaotic attacks on DeFi ever”. Millions of dollars worth of wrapped bitcoin (WBTC), wrapped ethereum (WETH), USD coin (USDC) and other assets were stolen as a hacker attacked a smart contract in Nomad Bridge that held the tokens.
TVL discussion on the nomadic effect
It has been a week since the Nomad incident, which has also affected our ecosystem. Let’s review events and how they affect it @ cardano Ecosystem.
– Cardano Daily[@cardano_daily] 10 August 2022
#TVL #discuss #cardano #Nomad #Bridge pic.twitter.com/jJw26vf8ER
Milkomeda, a Layer 2 protocol (roll-up) that provides EVM capabilities to non-EVM blockchains, then issued an alert that users of Nomad-based assets on Milkomeda and Cardano could be affected. The EVM side chain Milkomeda C1, launched in late March, enables Ethereum dApps to be deployed in the Cardano ecosystem. Nomad, a cross-chain protocol, is one of several bridges deployed in Milcomeda.
How Cardano was affected by the DeFi ecosystem
The consequences of the hack in the Cardano DeFi ecosystem did not go unnoticed, as the Wingriders DEX suffered a drop in its TVL, leading to a drop in the total value locked in the Cardano DeFi ecosystem. Prior to this time, the Wingriders had the largest share of dominance in Cardano’s TVL, controlling over 35%. Total Value Lock (TVL) is the number of user funds deposited in the DeFi protocol.
On August 2, when news of the Nomad hack surfaced online, Wingriders’ TVL fell by almost 60%, while Cardano’s TVL fell from a record $135.39 million in early August to $89.29 million per Dafilama data.
The postmortem analysis provided by the Cardano Daily Twitter account points to the significant drop in the TVL of the Wingriders DEX as it was the destination of the wrapped asset from Nomad to Milcomeda.
However, there are no known vulnerabilities in the Wingriders smart contract, and other DEXs continue to function properly. On the other hand, Wingriders TVL is down 57.70% every month as there are no assets on Nomad anymore, and the value of wrapped assets of Nomad has been lost.
At the time of publication, Cardano’s TVL was showing a 24-hour growth of 6.27% to $98.58 million. With the inclusion of staking, TVL reached a high of $124.71 million. Minswap now has the biggest dominance over Cardano’s TVL at 41.28%. The Wingriders DEX exhibited a growth of 16.25% over the past seven days. Several DEXs were also up on both a seven-day and monthly basis.