WOOFi disclosed an $8.75 million exploit on its swap service operating on Arbitrum. In response, the team extended an offer to the unknown attacker, proposing a 10% white hat bounty in exchange for the return of the funds.
The decentralized finance platform WOOFi revealed an attack on its swap service on the Arbitrum network. This exploit led to a loss of approximately $8.75 million in cryptocurrencies.
Exploit on WOOFi Swap Platform: A Summary
On Tuesday, an unknown attacker manipulated WOOFi’s Synthetic Proactive Market Making (sPMM) algorithm, exploiting low liquidity on the Arbitrum network. This manipulation significantly impacted the price of the WOO token.
The attacker utilized flash loans to borrow approximately 7.7 million WOO tokens and other assets, selling them on WOOFi. This action caused the sPMM algorithm to incorrectly assess the value of the WOO token at near-zero prices.
Taking advantage of this abnormal pricing, the attacker conducted multiple swaps totaling 10 million WOO tokens at minimal costs, resulting in substantial illicit gains.
Upon detection of the anomaly by WOOFi’s transaction monitoring system and other crypto security teams, WOOFi Swap’s smart contracts were swiftly suspended around 11 am ET. This action aimed to prevent further losses and initiate an investigation.
The sPMM algorithm, designed to mimic centralized exchanges’ dynamics, encountered an unexpected error in its interaction with WOO’s liquidity conditions on Arbitrum, enabling the exploit, according to the team’s assessment.
Despite the incident, other WOOFi products such as WOOFi Stake, Earn, and Pro remain unaffected and operational.
WOOFi’s Response to the Exploit
Offer of White Hat Bounty: In response to the incident, WOOFi extended an offer to the attacker, proposing a 10% white hat bounty for the return of the stolen funds. The team emphasized its commitment to addressing vulnerabilities before redeploying the WOOFi Swap contracts.
Focus on Security Measures: “We will collaborate with top security firms to ensure these vulnerabilities are detected earlier,” the team stated. They acknowledged that this incident was a first for them and expressed their determination to prevent similar occurrences in the future.
Market Impact and Recovery: Following the exploit, the price of each WOO token on various exchanges experienced an 18% drop, plummeting from $0.59 to $0.49. However, it has since rebounded to above $0.54, indicating initial market recovery.
⚠️Disclaimer
This content aims to enrich readers with information. Always conduct independent research and use discretionary funds before investing. All buying, selling, and crypto asset investment activities are the responsibility of the reader.
#woofi #arbirtum

Hey Crypto Enthusiasts! Binance is turning up the heat in the crypto world with an exclusive Web3 Wallet Airdrop, offering a whopping $100,000 in WOOFi (WOO) tokens. From January 23 to February 5, 2024, gear up for a thrilling journey of missions using Binance's Web3 Wallet to snag your share of the rewards.
How to Join the Fun:
Getting in on the action is a breeze – just hit that [Join Now] button on the activity page and tackle these missions using Binance's Web3 Wallet:
Swap any token to WOO with at least 100 WOO on Arbitrum in WOOFi - Score $20,000 in WOO tokensStake a sweet total of 100 WOO on Arbitrum in WOOFi - Bag $20,000 in WOO tokensDeposit at least 0.01 ETH into WOOFi’s vault on Arbitrum - Snatch up $20,000 in WOO tokensDrop at least 25 USDC into WOOFi Pro via Arbitrum - Pocket $20,000 in WOO tokensTrade at least $250 equivalent on WOOFi Pro - Win $20,000 in WOO tokens
Psst... each mission caps your rewards at $25 in WOO tokens, giving you the chance to max out at a cool $125 by acing all the missions.

Don't Miss Out on $100,000 in WOO Rewards!
Guides & Handy Stuff: Need a little guidance? Binance has got your back with these helpful materials:
What Is Binance Web3 Wallet and How Does It WorkBinance Research - WOO Network
The Nitty-Gritty: Before you jump in, make sure to give the terms and conditions a once-over. Your ticket to the rewards comes with a side of Binance's Prize Promotion Terms, Terms of Use, and Privacy Policy.
Exclusive Perks: Only users from eligible regions who hit [Join Now], complete KYC, and roll with an active Binance Web3 Wallet get a shot at the rewards. Newcomers? You're in luck – snag a 10% spot trading fee discount by registering for a Binance account.
Claiming Your Bounty: Binance will use the WOO/USDT spot trading pair's closing price on January 8, 2024, 23:59 UTC for reward distribution. Keep in mind, the actual reward value may sway with the market. Expect your token rewards to drop within two weeks post-Activity, and you can track the goodies in Binance Web3 Wallet.
Binance's Word is Law: Binance holds the cards – they can disqualify anyone playing dirty and tweak the rules on the fly. Keep an eye out for changes, and for the latest and greatest info, stick to the English version.
Ready to ride the Web3 wave? Dive into the $100,000 WOOFi Airdrop with Binance now. Your ticket to the future of decentralized finance awaits! 🚀

#Write2Earn #WOO #AirdropAlert #woofi #woofi @WOO Network