Stablecoin Cashio on Solana exploited for $28 million in ‘infinite mint glitch’

Quick Take

• Cashio Dollar is an algorithmic stablecoin backed by USDT-USDC LP tokens.
• It fell foul to an “infinite mint glitch,” according to its team.

A stablecoin on the Solana blockchain has been exploited for $28 million and lost practically all of its value.

Cashio Dollar (CASH) is an algorithmic stablecoin that was launched by a developer called 0xGhostChain in November 2021. Anyone can mint tokens by depositing liquidity tokens for the two stablecoins UDST and USDC from the Saber platform. They can redeem the stablecoin for the underlying liquidity tokens.

The exploit happened shortly after 9:00 AM UTC. According to data tracking site DeFi Llama, the total value locked within the protocol fell from $28.87 million to $569,000. At the same time, the price of the stablecoin dropped from $1 to practically zero, per data tracking site CoinGecko.

Cashio’s total value locked fell by $28 million today. Image: DeFi Llama.

“Please do not mint any CASH. There is an infinite mint glitch. We are investigating the issue and we believe we have found the root cause. Please withdraw your funds from pools. We will publish a postmortem ASAP,” tweeted 0xGhostChain today.

An infinite mint glitch is where a protocol is mistakenly designed in such a way that allows a user to mint as many tokens as they would like, typically without providing any collateral that might otherwise be needed. Once someone can mint infinite tokens, they can sell them on the market, crushing a token’s price.

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