layer2

Glori Finance was an alleged DeFi lending protocol deployed on the Arbitrum network in early 2024, operating as a Compound V2 fork with approximately $1.4 million in total value locked (TVL) at the time of its exposure. On April 14, 2024, blockchain investigator ZachXBT identified that the top GLORI token holders had seeded liquidity using funds stolen from prior scams — specifically the Crolend, Hash DAO, and HellHoundFi frauds — linking Glori Finance to a serial scam ring responsible for over $20 million in cumulative losses. Following ZachXBT's public disclosure, the Glori Finance X account was deactivated and the protocol's website went offline, consistent with an exit scam.

Velodrome Finance is an automated market maker (AMM) and decentralized exchange (DEX) launched on June 2, 2022, on the Optimism Layer 2 network. It is a fork and improvement of Andre Cronje's Solidly Exchange, implementing a ve(3,3) governance and liquidity incentive model. The protocol has experienced three documented security incidents: an insider theft of $350,000 by a team member in August 2022, a DNS/frontend social-engineering attack in November–December 2023 resulting in approximately $250,000 in user losses, and a second DNS hijacking in November 2025 attributed to a NameSilo registrar insider, resulting in estimated losses of $700,000–$1,000,000. Smart contracts have not been directly exploited; all monetary losses have stemmed from front-end and operational security failures.