Stellar DeFi Sector Hit Hard by $717K Blend Exploit
The Stellar DeFi sector suffered a significant setback after an exploit on the Comet AMM BLND-USDC liquidity pool resulted in a loss of $717,000. The incident led to a sharp decline in the total value locked (TVL) in Stellar's ecosystem from over $270 million on August 22 to approximately $98 million by August 27.
The exploit exposed vulnerabilities in the protocol, prompting Blend operators to pause its backstop pool and causing its TVL to fall from over $150 million to nearly zero. This amplified pressure on the broader Stellar DeFi landscape.
Despite the setback, Stellar's network fundamentals appear strong with the tokenized real-world asset market exceeding $3 billion. The price of XLM also showed resilience, trading down by only 2.82% to $0.18 after the exploit and sustaining levels above its major support area for eight straight days.