The multi-chain lending protocol Hundred Finance disclosed Saturday that it misplaced round $7 million after being hacked on the Ethereum layer-2 blockchain Optimism.
The protocol crew mentioned it was making ready a autopsy on how the assault passed off, and it suggested individuals to not speculate till it supplies readability by way of an official assertion.
Moreover, Hundred Finance mentioned it’s attempting to ascertain a dialogue with the hacker in hopes of recovering some or the entire stolen funds. In a separate Tweet, Hundred Finance mentioned it was additionally speaking to totally different safety groups in regards to the incident.
In a chatroom on Hundred Finance’s discord server, a pseudonymous member of the Hundred Finance crew named acidbird mentioned the “hacker just isn’t speaking but” however the crew is working “on all attainable situations.”
Moreover, acidbird mentioned that members of the Hundred Finance crew have been “hit financially” by the assault, together with one individual that had all of their stablecoins on the protocol.
On Sunday, the protocol requested customers impacted by the assault and primarily based within the U.S., particularly the state of New York, to contact Hundred Finance on both Twitter or the messaging app Discord.
Hundred Finance first warned individuals on Twitter in regards to the assault on Saturday, when the worth of the protocol’s Hundred Finance token, HND, was round $0.0416, in keeping with CoinGecko. Since then, it’s fallen round 46% to $0.0212.
The blockchain safety agency CertiK broke down the assault on Twitter, explaining that the hacker was in a position to stroll away with $7.4 million value of digital property after manipulating the trade fee between Ethereum ERC-20 and hTOKENS.
hTOKENS are described as “interest-bearing, tokenized representations of person deposits” on Hundred Finance’s web site, which may fluctuate in worth relying on the actions of different debtors.
The assault additionally concerned wrapped Bitcoin, an Ethereum-based token that’s backed 1:1 by Bitcoin.
The attacker was in a position to withdraw extra tokens than they’d deposited to Hundred Finance, CertiK mentioned. First, the attacker donated a considerable amount of wrapped Bitcoin to the sensible contract on Hundred Finance that decided the trade fee between wrapped Bitcoin and Hundred Finance Wrapped Bitcoin (hwBTC).
This inflated the trade fee, after which the attacker took out a big mortgage and was then in a position to get the quantity they’d donated again by redeeming a comparatively small quantity of Hundred Finance Wrapped Bitcoin.
In keeping with the Internet-3 focussed safety agency Numen Cyber Expertise, the loss incurred by Hundred Finance contains over 1,000 Ethereum, round 1.2 million of the stablecoin USDC, roughly 1.1 million of the stablecoin Tethern, and practically 843,000 of the stablecoin DAI, amongst different tokens.
The hack sustained by Hundred Finance on Optimism comes simply over a yr after the protocol was hacked on Gnosis chain, a blockchain mission that runs on high of the Ethereum community. That incident prompted Hundred Finance to quickly pause its markets throughout chains.
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