The Decentralized Financial Protocol (defi) Pickle Finance was hit with $ 19.7 million of DAI disappearing over the weekend. It seems that the DeFi industry is turning into a hacker paradise.
The protocol's native token, Pickle (PICKLE), fell 62% after the news emerged. Assets fell from $ 23.27 to $ 8.70 when the attack was first reported Nov. 21. At press time, tokens have recovered 11% over the past 29 hours, to $ 24, according to the Data. from Coingecko.
This is the fourth attack in space defi in just two weeks. Akropolis, Value Defi and the Origin protocol were mined a total of $ 15.7 million in flash-loan attacks.
Pickle Finance is a profit aggregation service that rewards users who provide liquidity to the protocol's various stablecoins with interest and disbursement of tokens in ETH, other stablecoins, or PICKLE native tokens.
It is not clear if Pickle Finance was attacked in the form of flash-loan, but the project development team announced in the blog post that “this is a very complex attack and involves many components of the transaction Pickle formula ”. The protocol's development team of 10 spent more than four hours figuring out the bug.
Hackers targeted DAI on Pickle Finance, and took away 19.759.355 DAI pegged to the US dollar.
Cybersecurity expert and chief technology officer at crypto exchange CEX.IO, Dmytro Volkov told us that the succession of multiple attacks on DeFi was a result of project development. rushed judgment:
Most defi projects' attacks are based on bugs in the source code. Errors in the applications happen for a variety of reasons.
Cybercriminals look for bugs in defi protocols and exploit them for their own purposes. As defi projects become more popular and the more capital flowing through them, the more hackers and more attacks the field attracts.