A major security occurrence has apparently hit Abracadabra, a decentralized finance (DeFi) protocol. According to security analysts, a malicious attack resulted in the loss of more than $6.4M.
Abracadabra Finance, a decentralized finance (DeFi) protocol, allegedly experienced a major security attack. According to security experts at Peckshield and Blocksec, more than $6.4M seems to have been drained from the protocol.
Exploits Target Abracadabra Finance’s Smart Contract
Blocksec claimed the attackers focused on the project’s smart contract. Leveraging a rounding problem that led to what is referred to as a ‘precision loss.’ At the time of writing, assets worth more than $29M were left in the affected contract.
Lei Wu, Blocksec’s chief technology officer, said that based on their assessment, precision loss resulted in circumventing the bankruptcy check. This enabled the attacker to borrow many Magic Internet Money (MIM) tokens with less security.
Abracadabra Finance is famous for its decentralized finance borrowing and lending tool and permits users to deposit different cryptocurrencies as security to borrow a stablecoin referred to as MIM. The Block’s price page shows that the incident led to the MIM stablecoin temporarily depeging to below $0.7 prior to its recovery to $0.96.
Abracadabra Finance Attribute Exploit to Ethereum-based Cauldrons
A statement by the Abracadabra Finance team showed they knew about an exploit that involved specific cauldrons on Ethereum. The crypto lending platform’s engineering team is triaging and assessing the situation.
Additionally, the team noted that its DAO treasury ‘will purchase back MIM from the market’ and burn them as a way to recover from the event and the connected MIM depeg.
Daniele Sesta co-founded Abracadabra Finance. He is famous for his role in projects such as Popsicle Finance and Wonderland Money.
SureTradeGroup.com is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Some of the content on this site is paid content that is not written or posted by our writers or editors and the opinions expressed do not reflect the opinions of this website. Any disagreement you may have with brands or companies mentioned in articles will need to be taken care of directly with those specific brands and companies. The responsibility of anyone who may click links in our articles and ultimately sign up for that product or service is their own. Forex, Stocks, Cryptocurrencies, NFTs and Dogital Tokens are all a high-risk asset, investing in them can lead to losses. Readers should do their own research before taking any action.