DeFi Security Storm Escalates: Saga Stablecoin Attacked, Over $10 Million Losses Sound Alarm

In recent weeks, the DeFi ecosystem has experienced a series of major security incidents, with several leading projects falling victim to attacks. Among them, Saga’s stablecoin was stolen for $7 million, and Makina was also hacked on Ethereum, losing $5 million. These two incidents highlight the increasingly severe security challenges faced by the DeFi space. Behind this “perfect storm,” there are technical vulnerabilities, governance flaws, and underlying risks left by the rapid development of the entire ecosystem.

Saga and Makina Both Fall Victim, DeFi Security Issues Surface

The incident involving Saga’s stablecoin is particularly alarming. As a critical infrastructure within the ecosystem, a security breach in a stablecoin not only affects the project itself but also undermines confidence across the entire DeFi ecosystem. While the $7 million loss may seem modest compared to the overall market size, the fact that Saga was attacked exposes weaknesses in the design of stablecoin protocols.

At the same time, Makina’s $5 million theft on Ethereum confirms this trend. The two incidents occurred within the same timeframe, which is no coincidence—they both point to a deeper issue: the security defenses of DeFi protocols are being breached.

Fusaka Upgrade Shows “Double-Edged Sword” Effect

According to NS3 reports, after the Fusaka upgrade on Ethereum, trading volume surged, which should have been a positive sign. However, the spike in trading volume brought unexpected consequences—more security vulnerabilities surfaced. This reveals a profound paradox: technological upgrades improve efficiency but also create more opportunities for attackers.

Furthermore, the second-layer network of Paradex was affected by a rollback incident that distorted Bitcoin price data, further exposing vulnerabilities in cross-chain interactions. These chain reactions are eroding investor confidence in DeFi security.

Governance Flaws Worsen Risks, World Liberty Financial Faces Crisis

Beyond technical vulnerabilities, governance flaws are also worsening the security situation in DeFi. The World Liberty Financial protocol is facing a governance crisis due to alleged internal manipulation, indicating that even in well-known projects, checks and balances are not always robust. Governance issues are often more difficult to fix than technical bugs because they involve decision-making capabilities and transparency of project teams.

Rising Risks, How Should Investors Respond?

These series of events send a clear signal: the security of the DeFi sector is at a critical juncture. The incidents involving Saga, Makina, and others are not isolated but reflect the fragility of the entire ecosystem. Investors need to recognize that high returns often come with high risks; every detail—from audit reports and governance structures to technical design—can be a key factor in project security. Greater caution should be exercised with stablecoins like Saga, as their risks can amplify and impact the entire DeFi ecosystem.