Gate Decentralized Finance Daily ( November 4: Total TVL plummets by 7.39%; Moonwell and Stream Finance encounter issues one after another.

On November 4th, the crypto market continued its downward trend, with BTC dropping below 104,000 USD, and ETH falling below 3,500 USD. The total DeFi TVL across the network fell below 140 billion USD, decreasing by 7.39% on the day. Frequent market risk events occurred, with Moonwell suffering over 1 million USD in losses due to an offline Oracle Machine attack, and Stream Finance losing 93 million USD due to fund management errors, while the stablecoin XUSD severely de-pegged. Meanwhile, ZKsync announced a staking rewards program, and Pendle achieved its highest historical income and volume, demonstrating the resilience of leading protocols. Overall, the market is facing fluctuations and trust challenges, with liquidity concentrating on high-quality assets.

Overview of the DeFi Market

(Source: DeFiLlama)

Total DeFi TVL across the network: Today (November 4), the crypto market continues to fall, BTC has dropped below 104,000 USD, and ETH has fallen below 3,500 USD; the total DeFi TVL across the network has fallen below the 140 billion USD mark, currently at 138.926 billion USD, a decrease of 7.39% in the last 24 hours.

DEX 24-hour volume: approximately 19.366 billion USD, with the top three being: Uniswap (4.727 billion USD), PancakeSwap (2.966 billion USD), HumidiFi (1.432 billion USD).

Popular Protocols and On-Chain Performance

The top ten DeFi protocol data ranked by TVL is as follows:

(Source: DeFiLlama)

Among them, the performance data of the top-ranked protocols are as follows:

Aave: TVL approximately 35.189 billion USD, 24-hour fall 4.87%;

Lido: TVL approximately 30.006 billion USD, 24-hour fall 5.91%;

EigenLayer: TVL approximately 14.6 billion USD, 24-hour fall 6.14%;

Spark: TVL approximately 9.579 billion USD, 24-hour fall of 4.26%;

Ethena: TVL approximately 9.281 billion USD, 24-hour fall 1.35%;

ether.fi: TVL approximately 8.681 billion USD, 24-hour fall 5.94%.

In addition, the top ten projects by protocol fees in the past 24 hours are as follows:

(Source: DeFiLlama)

Among them, Jupiter's protocol fees in the past 24 hours reached 7.37 million USD, ranking third, only behind Tether (23.38 million USD) and Circle (7.89 million USD); Uniswap's protocol fees in the past 24 hours reached 6.7 million USD, ranking fourth; Hyperliquid ranked fifth with 4.84 million USD.

Project News Summary

1. The blockchain security company BlockSec stated, “Our system has detected a series of suspicious transactions targeting the DeFi lending protocol Moonwell's smart contracts (deployed on Base and Optimism).”

After analysis, the issue stemmed from the abnormal rsETH / ETH token price data provided by the off-chain oracle - this price was exploited by attackers (possibly MEV bots), resulting in losses exceeding 1 million USD. It appears that the price data used by the protocol was incorrectly updated. Currently, it is not possible to directly contact the relevant project parties.

2. CZ posted on social media saying, “Every time I buy coins, I get trapped, a 100% record.”

In 2014, bought BTC at an average price of 600 USD, which fell to 200 USD within a month, lasting for 18 months.

In 2017, I bought BNB, which also fell by 20-30%, lasting for several weeks.

This time… it's still uncertain. I added a bit more position yesterday. So everyone should pay attention to the risks. I won't disclose it anymore to avoid affecting everyone's market.

3. The ZKsync community voted to approve the “ZK staking rewards program” proposal. The proposal includes a pilot program for a period of 6 months starting in December 2025 for ZK token staking rewards, with a total reward cap of 37.5 million ZK (approximately 1.9 million USD).

Staking participants will receive an annualized rate of up to 10%. The program will be deployed through Tally's smart contract and will be conducted in two seasons, with 10 million ZK and 25 million ZK allocated as rewards for each season, respectively. At the same time, users can also delegate voting rights, and there is no lock-in period.

4. Berachain stated on platform X that the hard fork upgrade files have been distributed, and many verification nodes have also been upgraded. They hope that core infrastructure partners required for on-chain operations (such as the settlement Oracle Machine) will ensure to update their RPC, as this is currently the main obstacle to restoring on-chain operations. Once the core service RPC requests are completed, they will coordinate with bridge operators, CEX partners, custodians, and others to restore services. They are also in communication with BEX fund holders, who is an MEV bot operator and claims to be a white hat hacker, willing to pre-sign a series of transactions to return the funds after the upgrade, which is expected to be returned to the deployment address of Berachain.

5. According to on-chain analyst Yu Jin's monitoring, this morning StakeWise recovered 5,041 osETH worth 19,300,000 USD from the Balancer hacker through a contract call. As a result, the assets stolen by the hacker from Balancer decreased from 117 million USD to 98 million USD. The hacker has been gradually converting LST into ETH, and has currently converted back more than half of the stolen assets into ETH.

Previously, StakeWise DAO announced that an emergency multi-signature account executed a series of transactions to recover approximately 5041 osETH (about 19 million USD) and 13,495 osGNO (about 1.7 million USD) from the Balancer attacker.

On the Ethereum mainnet, this corresponds to approximately 73.5% of the 6851 osETH that were stolen earlier. The Balancer attacker quickly exchanged the remaining stolen assets for ETH, so this is the maximum amount they were able to recover. All stolen osGNO has been recovered. The recovered funds will be returned to users affected by the Balancer V2 attack and will be distributed according to the proportion of account balances before the attack.

6. Stream Finance announced that “yesterday, the external fund manager responsible for managing the Stream funds disclosed that approximately 93 million USD of Stream fund assets suffered losses. In response, Stream is hiring lawyers Keith Miller and Joseph Cutler from the law firm Perkins Coie LLP to lead a comprehensive investigation into the incident.”

We are actively withdrawing all liquid assets, and this process is expected to be completed in the short term. To ensure that stakeholders are informed in a timely manner, we will provide regular updates as more information becomes available. All withdrawals and deposits will be temporarily suspended until a comprehensive assessment of the extent and causes of the losses is completed, and current deposit requests being processed will also not be executed.

Currently, the staked stablecoin Staked Stream USD (XUSD) has severely de-pegged, with a 24-hour fall of 76.8%, currently reported at 0.2909 USD.

7. Monad stated in a post, “Reply with your EVM wallet address under the tweet to receive some MON tokens from the Monad mainnet. These MON will be used to cover the initial few Gas fees, helping users to start using the chain. You need to follow Monad's official Twitter account to claim.”

8. According to a report by The Block, the crypto startup Liquid has integrated multiple decentralized perpetual contract trading platforms (including Hyperliquid, Lighter, and Ostium) into a non-custodial application and raised $7.6 million in a seed round funding.

Liquid founder Franklyn Wang stated that this round of financing was led by Paradigm, with participation from General Catalyst and several angel investors, including Ashwin Ramachandran, head of Brevan Howard Digital, Eric Wu, co-founder of Opendoor, Vlad Novakovski, founder of Lighter, and crypto trader smartestmoney.hl.

Wang stated that this round of financing was conducted in the form of equity and was completed in just five days in March, without commenting on the valuation after the financing.

9. According to official news, Aster has now launched the JELLYJELLY contract, with a maximum leverage of up to 5 times. In addition, 200 times leverage trading is now available on the Aster platform, applicable to ASTER, BTC, ETH, and BNB. On the Hyperliquid platform, the maximum leverage for BTC is 40 times, for ETH it is 25 times, for SOL it is 20 times, and for BNB it is 10 times.

10. According to official data, Pendle protocol's monthly revenue in October reached a historical high of 4.5 million USD; the trading volume in September also hit a record high of 11 billion USD. Additionally, Plasma's TVL on Pendle has now surpassed 1 billion USD, ranking third among all public chains deployed by Pendle.

11. Flashbots Strategic Director and Lido Strategic Advisor Hasu stated, “Balancer v2 launched in 2021 and has since become one of the most watched and frequently forked smart contracts. This is very concerning. Whenever a contract that has been live for so long is attacked, it naturally sets back the adoption process of DeFi by 6 to 12 months.”

Overview of Major Leading DeFi Projects

Solana DEX 24-hour volume ranks first, approximately USD 5.152 billion, with a month-on-month growth of 13.16%, of which the top three projects are:

HumidiFi ($1.432 billion), Meteora ($1.103 billion), Raydium ($686.23 million);

Ethereum DEX ranks second in 24-hour trading volume, approximately 4.3 billion USD, with a decrease of 15.13% compared to the previous period, with the top three projects being:

Uniswap (2.666 billion USD), Curve Finance (1.041 billion USD), Fluid (721.58 million USD);

BNB Chain DEX ranks third in 24-hour trading volume, approximately 4 billion USD, following Ethereum, with the top three projects being:

PancakeSwap (2.511 billion USD), Uniswap (692.66 million USD), OPINION (96.29 million USD).

Gate DeFi Section Token Market Data

According to the data from the Gate market page, the price performance of the top ten tokens in the DeFi sector is as follows:

(Source: Gate DeFi Market Trends)

As of November 4th, the overall cryptocurrency market is declining, with DeFi sector tokens experiencing a simultaneous drop. Specifically:

UNI is currently priced at 5.12 USD, with a 24-hour fall of 4.71%;

AAVE is currently reported at 196.54 USD, with a 24-hour fall of 7.77%;

WLFI is currently reported at 0.1096 USD, with a 24-hour fall of 13.01%;

MORPHO is currently reported at 1.62 USD, with a 24-hour fall of 16.18%;

INJ is currently reported at 6.6 USD, with a 24-hour fall of 9.05%;

MYX is currently reported at 1.77 USD, with a 24-hour fall of 6.42%;

CRV is currently reported at 0.423 USD, with a 24-hour decline of 4.96%;

SYRUP is currently reported at 0.3898 USD, with a 24-hour fall of 4.96%;

2Z is currently priced at 0.1554 USD, with a 24-hour fall of 6.87%;

BAT is currently priced at 0.2185 USD, with a 24-hour increase of 16.47%.

Market Trend Interpretation

TVL plummets, market enters a technical correction phase Today (November 4), the total DeFi TVL across the network reports $138.926 billion, down 7.39% in 24 hours, marking the largest single-day drop in nearly a month. The synchronized weakness of BTC and ETH directly triggers a liquidity contraction in DeFi assets. Leading protocols Aave, Lido, and EigenLayer fell by 4.87%, 5.91%, and 6.14% respectively, indicating a large-scale outflow of funds from mainstream asset staking. Meanwhile, Spark and ether.fi both dropped over 4%, highlighting the fragility of the lending and re-staking markets.

DEX volume has increased but the direction is bearish, capital is fleeing due to risk aversion The total DEX 24-hour trading volume has risen to 19.366 billion USD, an increase of about 58% compared to the previous period, but this mainly comes from increased selling pressure rather than new capital entering the market. Uniswap and PancakeSwap recorded trading volumes of 4.727 billion USD and 2.966 billion USD, respectively, with the increase in short-term trading frequency reflecting the market's panic exit. The trading volume of Solana's ecosystem HumidiFi has risen to 1.432 billion USD, indicating that some liquidity is still concentrated on arbitrage and hedging activities in high-performance chains.

Protocol Fee Distribution Adjustment, Jupiter Strongly Rises to the Top Three In terms of protocol fees, Tether (23.38 million USD) and Circle (7.89 million USD) continue to hold the top two positions, while Jupiter from the Solana ecosystem jumps to third with 7.37 million USD, reflecting that users tend to prefer high-efficiency aggregated trading platforms during turbulent market conditions. Uniswap ranks fourth with 6.70 million USD, and Hyperliquid ranks fifth with 4.84 million USD, with derivatives platforms maintaining high activity levels. Overall, the concentration of protocol income is rising, indicating that funds are more likely to flow toward platforms with deep liquidity and multi-chain support.

Frequent security and stability incidents have intensified market panic Moonwell suffered an offline Oracle Machine attack, with losses exceeding one million USD; Stream Finance revealed approximately 93 million USD in losses and suspended withdrawals, further undermining market confidence. Meanwhile, although some of the stolen assets from Balancer have been partially recovered (about 5041 osETH), the overall DeFi security risk remains high. Market risk-averse funds are clearly moving towards stablecoins and centralized assets.

( Analyst's View

1. The DeFi market is in a secondary correction cycle, with short-term capital panic dominating Analysts point out that this round of correction is mainly triggered by macro risk aversion and on-chain security events resonating. The price drop of BTC and ETH has weakened market confidence, leading to concentrated liquidation of DeFi leverage and staking positions. In the short term, liquidity continues to contract, and TVL may further dip to the 130 billion USD region.

2. Jupiter and the Solana ecosystem remain active against the trend, showing a migration of high-frequency trading funds Against the backdrop of a cooling overall market, Solana ecosystem projects such as Jupiter and HumidiFi have experienced a counter-trend increase in trading volume, indicating that some quantitative and MEV funds are shifting towards low-latency public chain execution strategies. This structural differentiation will drive the Solana ecosystem's trading depth to lead Ethereum during market fluctuations.

3. Frequent security incidents may become the catalyst for a new round of auditing wave The security incidents of Moonwell and Stream once again highlight the risks of DeFi infrastructure. Analysts believe that the coming weeks may usher in a concentrated auditing cycle focused on the safety of Oracle Machines and custodial funds, with the valuation of secure assets and auditing compliance protocols expected to receive relative support.

4. The DeFi market is under short-term pressure, but the mid-term structure still has potential Although the short-term market is facing continuous adjustments, some analysts point out that the capital outflow of core protocols such as Lido, Aave, and EigenLayer is still controllable compared to the volatility period last year. Institutional funds have not completely withdrawn, and the current situation resembles more of a technical adjustment phase, accumulating momentum for a robust recovery in the future.

Conclusion

Overall, the DeFi market on November 4th entered a phase low under the triple impact of liquidity, confidence, and security events. However, some high-performance ecosystems and protocols are still demonstrating resilience against the trend. In the coming days, the market may enter a “risk clearing” phase, where short-term fluctuations are significant, but it provides a window for mid-term capital reallocation.