2023-07-21 20:10:10
© Reuters DeFi Protocol Hacked With 1,700 ETH, Native Token Crashes
CriptoFácil – confirmed the attack on its official Twitter account:
“We are currently investigating an exploit involving Omnipool and will share updates as they become available.”
In response to a follower, the team stated that the attack appears to have been “isolated to ETH”.
The DeFi Conic Finance protocol, launched on March 1st, is a platform aimed at liquidity providers to easily diversify their exposure to various Curve protocol pools. Any user can provide liquidity into a Conic Omnipool that allocates funds through Curve in proportion to protocol-controlled pool weights.
All of Curve’s Liquidity Provider (LP) tokens are staking locked on Convex to increase Curve’s reward earnings (). Convex (CNX), another Curve ecosystem token, is also a form of reward, as is CNC, Conic’s native token.
Conic Finance suffers hacker attack
According to Crypto Twitter user @0xSifu, an industry “investigator”, the protocol lost a total of 1,700 (ETH) in the attack. In reais, this is equivalent to R$ 15.3 million.
According to security firm BlockSec, the root cause of the attack was price gouging caused by “read-only indentation”. Reentrance is a common bug that allows attackers to trick a smart contract by making repeated calls to a protocol to steal assets.
A call is an authorization for the smart contract address to interact with a user’s wallet address. After the attack, the developers added that they closed the problematic pool that apparently allowed the hack to take place.
Also Read: Coinbase (NASDAQ:) Ends Retail Backed Lending Program
Native DeFi protocol token collapses
After news about the attack began to circulate, the price of the native token of the DeFi CNC protocol retreated sharply. According to data from CoinGecko, the crypto asset fell from R$ 28.40 to R$ 18.05, in a 36% devaluation in a few hours.
At the time of writing this article, the token has recovered a small part of the losses and is costing BRL 20.90. Even so, CNC accumulates a daily devaluation of 20.6%.
Read also: Terraform Labs wants to use FTX wallets in defense against fraud
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