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PeckerShield first reported the incident on Twitter. - 2
SUSHI was down by over 2% at the time of writing.
Smart contracts may be getting popular among the crypto community but vulnerabilities have not left their side entirely. SushiSwap, a decentralized exchange (DEX), recently experienced a bug according to PeckShield, a blockchain security and data analytics company. However, the DEX just confirmed that it has secured a large portion of funds affected in the incident.
Team Working To Recover 700 More Ethereum
In their latest tweet SushiSwap confirmed the recovery of a large portion of the affected funds in a whitehat security process. An approval related bug in RouteProcessor2 contract led to an over $3 Million loss. Jared Grey, SushiSwap’s head developer, asked the users to revoke the approval permissions for security reasons. He recently pointed out that cross-chain swaps were rising considerably on the platform.
Sushi's secured a large portion of affected funds in a whitehat security process.
— Sushi.com (@SushiSwap) April 9, 2023
The protocol released its latest update a couple of days ago. A tweet revealed they have deployed Version 3 and concentrated liquidity contracts. SushiSwap is trying to leverage its multi-network and cross-chain infrastructure to bring aboard more users on the platform. DeFiLlama delivered the initial information which Jared elaborated on Twitter later.
Earlier today @DefiLlama leaked alpha re: @SushiSwap's newly deployed concentrated liquidity (CL) / V3 contracts ahead of official news. It's only fair I leak more info…
— Jared Grey (@jaredgrey) April 6, 2023
Jared Grey revealed that recovery efforts are underway after the incident. Furthermore, he added to the thread that they are in contact with Lido’s team to recover 700 more ETH (worth $1.28 Million at publication time). The affected users might see everything going back to normal considering the pace of efforts the DEX is moving with.
SushiSwap ‘head chef’ said last week that he ‘no longer felt inspired’ after regulators started wreaking havoc on the cryptosphere recently. He highlighted Elizabeth Warren’s, US Senator, statement regarding assembling an anti-crypto army to fasten crypto regulations.
Although the crackdowns may pose a bigger problem in the digital asset sector, the RouteProcessor2 contract exploit is a reminder that DEXs need to be more secure. However, the network was able to do a quick recovery, rendering it trustworthy among users.
Developers need to identify smart contract vulnerabilities as quickly as possible to avoid exploits. Poly Network hack in 2022 remains the infamous attack where the attacker wiped over $600 Million during the event. However, the actor returned the funds to the network as he explained he did the act to reveal network vulnerability.
SushiSwap is among the leading decentralized crypto exchanges, providing users with services including lending, borrowing and more. The smart contract bug is likely to increase concerns among users, specifically the affected ones. As of now, the protocol has not confirmed recovery of all the funds, but constant efforts may deliver some positive news to the users soon.
Source: https://www.thecoinrepublic.com/2023/04/09/sushiswap-claims-to-have-recovered-a-large-portion-of-affected-funds/