Cream Finance TVL Showing No Signs of Recovery; Down Over 75% Since the Hack


The decentralized peer-to-peer lending platform Cream Finance is having a rough time these past few days, at least in terms of TVL (total value logic) and its price performance.

CREAM is among the biggest losers, down over 28%, in the past week, with the price of token trading around $174. While up 156% YTD, it has lost almost 12% of its value in the past 24 hours.

Much like the token price, the TVL of the protocol has gone under $180 million, down from nearly $730 million on Feb. 13, as per DeFi Pulse.

The TVL has been showing no recovery ever since it started dumping on the day the exploit occurred.

Interestingly, Alameda was the biggest user of the platform, and the day the exploit happened, $400m worth of FTT and some SRM were instantly withdrawn, which is the primary reason behind the big drop.

Meanwhile, the TVL on the lending platform Alpha Homora remains above $1 billion. However, the token ALPHA has lost 31% of its value in the past week, and it currently stands at $1.60.

The attacker actually exploited Alpha Homora V2 using a series of complex transactions, more than 9, which involved flash loans.

“The debt is not between users and Alpha Homora v2, but between Alpha Homora V2 and Cream V2. This is because Alpha Homora V2 is integrated with Cream V2 (Iron Bank) in a protocol-to-protocol lending way. Thus, the debt is between the two protocols and not the users,” shared the team in its post mortem of the exploit.

This week, the team announced the roadmap, assuring that users’ funds are safe, and they are working with Yearn.Finance founder Andre Cronje and the Cream team to discuss various options.

They are also taking security measures that include multiple internal reviews, peer reviews by top developers in DeFi, and audits by industry-leading security audit firms, and only then v2 will be relaunched. Peckshield and Qunatstamp already audited alpha Homora V2.

“DeFi is at an inflection point to shift towards a more secure ecosystem as a whole… We are confident that Alpha and DeFi communities will come out from this inflection point stronger than ever.”

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