bZx Suffers Second Attack, $645,000 Worth ETH in Jeopardy
- The fresh attack has affected twice the funds compared to the previous one.
bZx, a decentralized finance (DeFi) protocol on Ethereum (ETH) network, has been hacked again, losing an estimated amount of 2,388 Ethers worth around $645,000.
“This attack appears to be an oracle manipulation attack,” Kyle Kistner, co-founder of the platform, wrote on its official Telegram channel.
This is the second attack on the DeFi platform in a span of four days as the first attack the hackers managed to siphon 1,193 Ethers with a market value of almost $322,000, as of press time.
We have hit the pause button on the protocol again in light of suspicious transactions using flash loans and trading on Synthetix.
— bZx (@bzxHQ) February 18, 2020
“We can neutralize this like we did last time,” Kistner added.
Flaws in DeFi platforms?
Founded in 2017, bZx developed a DeFi protocol creating an ecosystem of decentralized applications (DApps), including margin trading and lending platform, wallets, and many more.
The previous exploitation of “flash lending” was done on its Fulcrum platform and was estimated to have compromised roughly 2 percent of the total assets under management (AUM) of the platform.
As Finance Magnates reported earlier, the attackers exploited flash loans using another well-known DeFi platform - Compound.
The reports of the new attack on the DeFi platform surfaced following the publication of a detailed “Post-Mortem” of the first attack this morning. Kistner also assured that all funds of the platform's users are safe.
Following the first attack, the platform also decided to integrate Chainlink’s solutions to flag suspicious transactions, and after the second attack, the process has been expedited, Kistner revealed on Telegram.
From what I can tell, it was some type of manipulation of sUSD via kyber. Looks like the eth was sold for sUSD over and over and over then rebought and had a profit after loan (7500 eth) was repaid.
— eric.eth (@econoar) February 18, 2020
“Note that this is not yet a loss, but has the potential to become a loss,” Kistner mentioned about the impact of the first attack. “According to our calculations, the collateral currently residing in our vault is enough to service interest Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term at market rates on the loan for hundreds of years if nothing is done. However, there is an element of Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term risk since the collateral is in wBTC, the interest is denominated in ETH, and interest is only converted into ETH every 28 days.”
bZx, a decentralized finance (DeFi) protocol on Ethereum (ETH) network, has been hacked again, losing an estimated amount of 2,388 Ethers worth around $645,000.
“This attack appears to be an oracle manipulation attack,” Kyle Kistner, co-founder of the platform, wrote on its official Telegram channel.
This is the second attack on the DeFi platform in a span of four days as the first attack the hackers managed to siphon 1,193 Ethers with a market value of almost $322,000, as of press time.
We have hit the pause button on the protocol again in light of suspicious transactions using flash loans and trading on Synthetix.
— bZx (@bzxHQ) February 18, 2020
“We can neutralize this like we did last time,” Kistner added.
Flaws in DeFi platforms?
Founded in 2017, bZx developed a DeFi protocol creating an ecosystem of decentralized applications (DApps), including margin trading and lending platform, wallets, and many more.
The previous exploitation of “flash lending” was done on its Fulcrum platform and was estimated to have compromised roughly 2 percent of the total assets under management (AUM) of the platform.
As Finance Magnates reported earlier, the attackers exploited flash loans using another well-known DeFi platform - Compound.
The reports of the new attack on the DeFi platform surfaced following the publication of a detailed “Post-Mortem” of the first attack this morning. Kistner also assured that all funds of the platform's users are safe.
Following the first attack, the platform also decided to integrate Chainlink’s solutions to flag suspicious transactions, and after the second attack, the process has been expedited, Kistner revealed on Telegram.
From what I can tell, it was some type of manipulation of sUSD via kyber. Looks like the eth was sold for sUSD over and over and over then rebought and had a profit after loan (7500 eth) was repaid.
— eric.eth (@econoar) February 18, 2020
“Note that this is not yet a loss, but has the potential to become a loss,” Kistner mentioned about the impact of the first attack. “According to our calculations, the collateral currently residing in our vault is enough to service interest Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term at market rates on the loan for hundreds of years if nothing is done. However, there is an element of Volatility Volatility In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders In finance, volatility refers to the amount of change in the rate of a financial instrument, such as commodities, currencies, stocks, over a given time period. Essentially, volatility describes the nature of an instrument’s fluctuation; a highly volatile security equates to large fluctuations in price, and a low volatile security equates to timid fluctuations in price. Volatility is an important statistical indicator used by financial traders to assist them in developing trading systems. Traders Read this Term risk since the collateral is in wBTC, the interest is denominated in ETH, and interest is only converted into ETH every 28 days.”