AFTER THE HACK: DeFi protocol bZx's booth sits empty at ETHDenver.
Decentralized finance project bZx has suffered an attack in which a hacker successfully gamed multiple DeFi protocols to extract $350,000 from the platform, about 2 percent of the assets under management.
In response, the company took down its lending and trading protocol Fulcrum at 7:00 UTC. The company was presenting at ETHDenver during the hack.
The attack could be symptomatic of a continuing issue in DeFi, said Chainlink CEO Sergey Nazarov at the event: how to source price information.
The attack was even more notable because of its timing as the team had to deal with the hack during the ethereum community's EthDenver hackathon, which largely focuses on DeFi.Nazarov said that sourcing price data from one oracle, services that collect and issue on-chain price information, remains a problematic and the issue is one DeFi teams are still working out, although its relation to this issue has yet to be firmly established, he added.
Staked CEO Tim Ogilvie, which operates a working relationship with bZx, said the loss amounts to an expensive bug bounty and highlights the novelty of flash loans, a new DeFi feature which allows traders to borrow and return funds in short windows the hacker leveraged for the attack.
The attacker then split the borrowed funds, sending 5,000 ETH to DeFi protocol Compound and the other half to bZx.
The attacker shorted wrapped bitcoin on bZx quickly followed by borrowing 112 WBTC on Compound, worth about $1.1 million, and selling the borrowed WBTC on UniSwap, another DeFi market, said Ogilvie.
Ogilvie said, which the firm denied on Twitter, that bZx uses UniSwap's price feed for WBTC. When the attacker dropped the $1.1 million worth of WBTC on UniSwap, their bZx short became extremely profitable, said Ogilvie.
The eighth-largest DeFi market according to DeFi Pulse, 16 percent of funds locked in bZx have been withdrawn from the protocol in the past 24 hours.
Exploit During ETHDenver Reveals Experimental Nature of Decentralized Finance
pubblicato su Feb 15, 2020
by Coindesk | pubblicato su Coinage
Coinage
Menzionato in questo articolo
Notizie recenti
Vedi tutti
Blockchain Bites: Bitcoin's Run, Uniswap's Hemorrhaging Value, Anchorage's Banking Bid
Bitcoin is nearing all-time highs in price and market cap last set three years ago.
Japan's megabanks to lead experiment with digital yen
We have, in order, Cheese Bank with a $3.3 million theft, Akropolis with its $2 million loss, Value DeFi with a whopping $6 million exploit and finally Origin Protocol's loss of $7 million.
Number of new Bitcoin addresses spikes amid growing FOMO
Japan's three largest banks, as part of a group of 30 private sector actors, are set to collaborate on an experiment with a digital yen.
Not just Wall Street: Quant trader explains why Bitcoin price is going up
Sam Trabucco, a quantitative trader at Alameda Research, believes four general factors are pushing up the price of Bitcoin.