On Monday, polygon-based decentralized exchange (dex) Quickswap lost $220K in a flash loan exploit and following the attack, the team Quickswap Lend detailed that the platform would be terminated.
Quickswap hacked for $220K, Dex project sunsets Lending platform
2022 has been quite a year for decentralized finance (Defi) hacks, with billions stolen by mistakes, flash loans, flawed smart contracts, and unchecked lines of code.On October 24, Quickswap was hacked by Market XYZ lending market was compromised for $220,000, explaining
“Quickswap Lend is closing.” The team’s Twitter account noted Monday.” 220K was exploited in a flash loan attack due to a vulnerability in Curve Oracle used by [Market XYZ] Only Market XYZ’s lending market was compromised; Quickswap’s contracts were not affected.”
Quickswap also added that Qi Dao provided seed funding for the Market XYZ lending market, stressing that “user funds were not compromised.” Dex urged users who have deposited funds in the Market XYZ open market to withdraw them immediately, as the Quickswap Lend will be sunset.
The recent Quickswap attack follows the Mango Markets hack and the recent Olympus DAO exploit, in which Olympus, like many recent defi projects, negotiated with hackers after the exploit was Olympus, like many recent defi projects, regained its funding after the exploit took place after negotiations with hackers. Last week, Bitcoin.com News reported on a Chainalysis investigation showing that crypto hackers have made off with more than $3 billion this year from 125 exploits.
Regarding the Quickswap exploit, blockchain auditing and security firm Peckshield explainedthat the vulnerability was discovered on October 11, 2022.” ‘It is a price manipulation issue,’ Peckshield tweeted.” Mimatic market uses Curvepooloracle for price feeds and is manipulated to borrow money from the market.” added Peckshield’s blockchain security analyst.
Market XYZ lending market seed fund provider Qi Dao is the creator of Mimatic (MAI) stablecoin. Chainsecurity, a blockchain security and Web3 auditor,disclosed the exploitin a blog post shared by Peckshield after the hack; Mimatic (MAI), according to statistics from coingecko.com, was listed on October 23, sliding to a low of $0.9895, but the MAI stablecoin is currently trading hands at $0.993 per unit at the time of writing.
Image credits: Shutterstock, Pixabay, Wiki Commons