DeFi Protocol Hundred Finance Loses $7M in Latest Exploit

DeFi Protocol Hundred Finance Loses M in Latest Exploit


Multi-chain lending protocol Hundred Finance has suffered a security breach on the Optimism layer-2 scaling network, which resulted in the theft of approximately $7 million worth of assets.

hundred finance confirmed the exploit on April 15, noting that it had contacted the hacker for negotiations. The platform is also working with different security teams to resolve the issue and has urged anyone with information on the incident to reach out.

What Happened?

According to blockchain security firm Peckshield, the hacker executed the attack by donating 200 WBTC to inflate the exchange rate for hWBTC. This allowed them to drain Hundred Finance’s lending pools with a tiny amount of hWBTC.

A detailed analysis from another security firm CertiK suggests that the attacker manipulated the exchange rate between ERC-20 tokens and hTokens by donating large amounts of WBTC to the hToken contract to increase the exchange rate.

The exploiter then opened a large borrow position under the new exchange rate, which allowed them to withdraw more tokens than they had initially deposited.

The protocol said it is preparing a post-mortem on how the exploit occurred and advised people not to speculate on it. The team stated that the focus is to establish communications with the hacker to reach an agreement for a refund.

Not the First

Worth noting is that this is not the first time Hundred Finance has been hacked. Last year, the protocol suffered a reentrancy attacklosing roughly $6.5 million worth of ETH to the exploiter.

Despite the exponential growth of the DeFi space, a pressing issue that looms large is the escalating security threats. Recent data from blockchain analytics platform Chainalysis reveals that in 2022, DeFi protocols were hit the hardest, accounting for a staggering 82% of all stolen crypto assets, equivalent to a staggering $3.1 billion in losses.


Binance Free $100 (Exclusive): Use this link to register and receive $100 free and 10% off fees on Binance Futures first month (terms).

PrimeXBT Special Offer: Use this link to register & enter CRYPTOPOTATO50 code to receive up to $7,000 on your deposits.


Source link

Leave a Comment