#DeFi security startup Quantstamp has recently released a report highlighting alarming security incidents in the growing world of decentralized finance (DeFi). Malicious actors are employing sophisticated methods to threaten and exploit DeFi protocols.
Nearly $39 Million Lost
Quantstamp revealed that malicious actors managed to drain approximately $38.9 million from DeFi through various attacks. These incidents involved the use of smart contracts, key compromises, and fraud.
Radiant Capital: The First Target
The first significant target was the Radiant Capital protocol, which facilitates cross-chain lending. Attackers caused a loss of 1,900 #ETH (approximately $4.5 million) by exploiting a time window and a known rounding issue in the Compound/Aave code. This incident raised concerns about the security of DeFi platforms and their users.
Gamma Protocol: Another Victim
A devastating attack followed on the Gamma Protocol, a liquidity control protocol, which suffered a loss of approximately $6.18 million. Exploiting vulnerabilities in the price movement threshold configuration allowed attackers to manipulate prices and generate a large number of LP tokens.
Wise Lending and Socket Protocol
Wise Lending, another prominent player, fell victim to a flash loan attack, resulting in a loss of at least $460,000. The Socket Protocol, an interoperability protocol, was also targeted, with attackers exploiting vulnerabilities in a new module to steal approximately $3.3 million from users.
Goledo Finance: A Loss of 7.9 Million CFX
Goledo Finance, a lending protocol within the Conflux ecosystem, was also subjected to an attack, resulting in a loss of 7.9 million CFX (approximately $1.7 million). This incident underscores the serious threat that malicious actors pose to DeFi platforms.
Persistent Threat to DeFi
In conclusion, this series of attacks, including recurring flash loan attacks, underscores the persistent threat that DeFi platforms must contend with. Thorough security measures need to be implemented, and vulnerabilities monitored to minimize losses and safeguard users in this dynamic ecosystem.
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