Centralized Domain Systems Undermine DeFi Confidence Following Aerodrome DNS Compromise

Aerodrome Finance, a decentralized exchange (DEX) operating on Coinbase's Base network, is currently dealing with a front-end security breach that has led users to abandon its main domains due to DNS hijacking threats. This breach, which redirected visitors to fraudulent phishing pages, has resulted in urgent advisories for users to access the protocol through decentralized ENS (Ethereum Name Service) mirrors for safety

. The event, which took place late Friday, is the latest in a string of security incidents for the platform, in total value locked.

The exploit targeted weaknesses in Aerodrome's centralized domain controls, enabling attackers to divert users to imitation sites built to steal wallet transaction signatures. Although the core smart contracts—which handle user assets and protocol operations—remain uncompromised, Aerodrome's team has instructed users to revoke any recent token permissions and

on suspicious domains. The affected domains include aerodrome.finance and aerodrome.box, and the platform is such as aero.drome.eth.limo.

This breach follows a similar DNS hijacking incident in late 2023, which caused users to lose about $300,000. The latest attack happened just days after Aerodrome revealed its merger with Velodrome, another major DEX on

, aiming to combine liquidity under the unified "Aero" ecosystem. Investigations are ongoing at both platforms, though as of the latest update.

In the meantime, Aerodrome's native token, AERO, has experienced volatile trading. Despite a buyback initiative of 155 million tokens—representing 17% of its circulating supply—

to around $0.80 at the time of writing. The buyback, supported by the Flight School incentive program and token lockups, has eased some selling pressure but in its 50-day and 200-day exponential moving averages, indicating a short-term bearish trend.

This attack highlights ongoing security issues in DeFi, especially for projects that depend on centralized infrastructure. While decentralized smart contracts remain a core blockchain innovation, front-end risks like DNS hijacking expose the vulnerabilities of hybrid systems that mix on-chain and off-chain elements. Aerodrome's move to promote decentralized access points

to minimize reliance on centralized services.

The Aerodrome team is collaborating with domain provider My.box to address the breach

, but the incident has reignited discussions about whether current DeFi security practices are sufficient. As the investigation continues, users are reminded that , such as ENS domains, provide a more robust way to access protocols while reducing exposure to phishing attacks.