A Deep Dive into This Week’s $10M DeFi Exploits

While many aspects of the cryptocurrency continue to evolve, the space remains vulnerable to security risks and this week saw several big DeFi hacks. Most of these hacks have led to millions in loss with investors having their confidence dented while at the same time, these hacks have exposed weaknesses within decentralized finance protocols. Here are the key incidents that occurred:

Bedrock DeFi Hit by $2 Million Exploit

The multi-chain liquidity re-staking protocol, Bedrock, fell on a vulnerability in its uniBTC pool. Hackers took advantage of an issue in the smart contract, which allowed uniBTC to be minted at an incorrect 1:1 exchange rate with the native currency of the platform it represents. This error allowed attackers to pull out liquidity, which cost $2 million. 

Subsequently, Bedrock has informed that the BTC and wbtc reserves are still there and the platform has been working with the audit teams to get to the bottom of the hack and attempt a fund recovery where possible.

Truflation Hack: $5M stolen from the treasury wallets

Truflation, a decentralized inflation data provider, lost $5 million from their treasury multi-sig and personal wallets across multiple blockchains to hackers, as initially reported by on-chain investigator ZacXBT. This breach occurred due to malware that provided the attackers access to the keys and wallets critical to the website.

Onyx Hit by $3M Hack: Exploit targets decentralized protocol

 Another protocol that followed the same example was Onyx protocol, which fell for the scammers and incurred a $3.8 million loss. They learned how to abuse a precision defect in the Compound V2 code in order to manipulate the exchange rate and pump up rewards for self-liquidation. 

Furthermore, a vulnerability in the Implementation NFTLiquidation contract was found to sum up the previously mentioned negative input and amplify the possibility of a loss. This incident was particularly an eye-opener concerning the lack of robust security measures for smart contract validation work.

Conclusion

From these incidents alone, the total losses exceed $10 million which makes it necessary to ask questions about the security of these decentralized platforms. These breaches will go a long way in reminding the DeFi community to remain focused on enhancing their security. Stay safe while we bring you the latest in the crypto through our weekly hack report!