Zunami Protocol Reportedly Hacked for Over $2.1 Million

• The protocol stressed that collateral remained safe amid the ongoing investigation.
• PeckShield was among the first to identify the vulnerability on Curve Finance.

After experiencing an assault on its “zStables” pools on Curve Finance, Zunami Protocol has warned users not to purchase any of its Zunami Ether (zETH) or Zunami USD (UZD) stablecoins.

On August 13, Zunami stated in a tweet that its stablecoin pools had come under assault. It also stressed that collateral remained safe despite the company’s ongoing investigation into the possible vulnerability.

The protocol stated:

“It appears that zStables have encountered an attack. The collateral remain secure, we delve into the ongoing investigation.”

Price Manipulation Assault

PeckShield, a blockchain security company, attributes the theft of more than $2.1 million from Zumani’s Curve Pool to a problem with pricing manipulation. Ironblocks, another blockchain security company, also found this number.

On August 13 at 10:47 UTC, PeckShield was among the first to identify the vulnerability on Curve Finance, and around 20 minutes later, Zunami verified it. The biggest Zunami stable pools are hosted on Curve, making it an ideal platform for the decentralized income aggregator protocol. The assault has affected both Zunami USD and Zunami Ether.

PeckShield disclosed additional flaws on August 9 that might compromise DeFi projects. The business states that at least $287,000 in Ether was stolen due to a reentrancy attack on Aave’s Earning Farm. When an attacker repeatedly submits and then cancels a request for funds in an effort to convince the system to pay out more funds than it really has, this is known as a reentrancy attack.

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