2022 is a tough year for the DeFi ecosystem as hackers continue to exploit the community. From the beginning of the year to today, news of exploits of the DeFi protocol has been flooding the crypto industry. So the question is: Why do hackers continue to target decentralized finance protocols?
Today’s report reveals that three DeFi protocols have faced hacking attacks in the past 24 hours. First, TempleDAO, a yield farming protocol, was reportedly under attack yesterday. Security firm Peckshield announced the attack on Tuesday October 11th. According to Peckshield, the hacker transferred 1,831 ETH worth about $2.34 million from TempleDAO.
Image: DeFi
The company has yet to release full details of the attack. But it seems that the exploit involved STAX and FRAX. STAX and FRAX are part of TempleDAO’s staking vaults. Paladin Blockchain security said that the STAX smart contract was hijacked by TempleDAO, leading to the loss.
TempleDAO’s loss of $2.3 million is nothing compared to the amount stolen from Mango Markets’ DeFi derivatives platform. Unfortunately, a few hours after the TempleDAO attack, the Mango Markets were hacked. Mango Markets is a Solana-based decentralized finance platform for trading crypto assets.
Solana is trading in the red on the l SOLUSDT chart on Tradingview.com
Details of MangoMarkets’ $100M attack on the DeFi protocol
Mango Markets reported news of the attack on Wednesday, October 12. According to the company, the exploit, in which the hacker manipulated an oracle prize, cost them $100 million.
The attacker followed a self-funded economic pattern and funded an account with 5.5 million USDC. After funding the account with $5.5 million, the exploiter used it to remove a perpetual futures contract for MNGO (Mango Markets’ native token) and exchange it for MNGO.
Image: AMBCrypto
The removal of the futures contract resulted in upward manipulation of the MNGO price. The price manipulation allowed the hacker to withdraw Mango’s Treasury loan and siphon off the liquidity. Among the first to report news of the Mango attack is blockchain security firm OtterSec.
OtterSec said they are investigating the attack and hope to clear the misinformation about it. The security firm explained that the attack was not a flash loan attack and the hacker funded his address with $5.5 million through FTX. OtterSec also said the hacker manipulated prices on all crypto exchanges, not just Solana oracles.
The hacker opened up a Mango DAO governance proposal, demanding that all bad debts on Mango’s $70 million treasury be paid in exchange for the stolen funds. The attacker also asked for a bounty.
MNGO price loses 50%, QANX 3.3 billion token stash released
Meanwhile, the MNGO token price fell 50% after news of the attack, but the protocol has very little liquidity left to settle outstanding derivative contracts.
The third attack on the DeFi community is the QANplatform hack. The attack involved an exploited bridge that cost the protocol about $1 million and caused the price of the QANX token to fall. QANplatform is a quantum-resistant layer 1 blockchain with its native token QANX. The report came on October 11 and revealed the loss of the protocol’s 3.3 billion token stash.
Featured image from Pixabay, chart from TradingView.com
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