Nemo, a yield protocol on the Sui blockchain, was exploited for $2.4 million on Monday, highlighting ongoing vulnerabilities in decentralized finance (DeFi) despite increasing institutional interest in digital assets. The attacker transferred USD Coin (USDC), a dollar-pegged stablecoin issued by Circle Internet, from Arbitrum to Ethereum, emphasizing the risks present in the DeFi landscape. Following the exploit, the total value locked in the Nemo yield trading plummeted from over $6 million to $1.53 million, according to data from DeFiLlama. Nemo allows users to tokenize their yield by splitting staked assets into Principal Tokens and Yield Tokens, which can be used for trading and speculating on future yields. This incident is part of a broader trend of hacks affecting DeFi protocols, underscoring the need for improved security measures in these financial systems.

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