- Makina Finance lost roughly $4.2M in a Curve pool exploit.
- The protocol activated security mode across all contracts.
- TVL and daily fees unexpectedly surged despite the hack.
Makina Finance, an Ethereum-based decentralized finance execution engine, suffered a multi-million-dollar exploit early Tuesday, raising fresh questions about risk in automated DeFi strategies. Yet, in a surprising twist, the protocol continued to post strong growth metrics even as developers worked to contain the damage.
The incident underscores a familiar DeFi tension: rapid innovation paired with persistent security threats.
What Happened in the Makina Finance Exploit
Blockchain security firms flagged suspicious activity linked to Makina Finance’s DUSD/USDC liquidity pool on Curve. Investigators estimate that attackers drained roughly $4.2 million, leaving liquidity providers exposed to losses.
Liquidity pool exploits typically spread losses across providers, meaning affected users often bear the cost collectively. Makina later confirmed that the breach was limited to a single Curve pool and urged impacted participants to withdraw their funds.
Shortly after, the team activated a protocol-wide security mode — a precautionary step that usually signals ongoing investigation and an effort to prevent further exploits.
Security Mode Signals Ongoing Investigation
Activating security mode across all contracts effectively pauses certain automated actions within the protocol. While this limits immediate damage, it also suggests the team is still determining how the exploit occurred.
Makina has not yet released a detailed post-mortem, and users are advised to exercise caution when interacting with the platform until the investigation is complete.
TVL and Fees Rise Despite the Hack
Despite the breach, on-chain data paints an unexpected picture. Makina’s total value locked jumped more than 20% in 24 hours, reaching approximately $100 million, according to public DeFi dashboards.
Daily protocol fees also exceeded $128,000, setting a new record. The surge may reflect renewed capital inflows, repositioning by existing users, or confidence in Makina’s broader strategy infrastructure — though analysts warn such data can be volatile following security incidents.
Makina’s exploit adds to a growing list of DeFi breaches in 2025, a year that has already seen billions of dollars lost to hacks and wallet drains. Large-scale incidents continue to test investor confidence, especially as attackers increasingly rely on mixers to obscure stolen funds.
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Makina Finance’s ability to grow TVL and fees amid a $4.2 million exploit highlights both the resilience and fragility of modern DeFi. While performance metrics may look strong, unresolved security questions remain. Until clearer answers emerge, caution remains the most valuable asset for users.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of CoinBrief.io. Before making any investment decisions, you should always conduct your own research. CoinBrief.io is not responsible for any financial losses.
