On September 12th the company DeFiPrime note that the DeFi Zabu Finance log was hacked by hackers and up to $ 3.2 million in funds was stolen. This is the first major attack on the Avalanche ecosystem.
Immediately afterwards, Zabu Finance got up confirm about the attack, saying the funds were stolen from his SPORE pool:
“Team Zabu has not sold a single ZUBA (Zabu Finance native token). We are under attack, possibly from the spore pool. We investigate. I hope the community can help us. “
Zabu Finance added that the hacker took advantage of the protocol’s “transfer tax” mechanism to mint large amounts of ZUBA, causing the price to drop. The attacker manipulated a loophole in the contract that is used by yield farms to distribute rewards. Security company PeckShield to say “The same mistake has happened many times before”.
Fixed zabu after the hack
Describing itself as a full DeFi station on Avalanche, Zabu Finance explains that the attacker interacted with the contract to remove 4.5 billion ZABU tokens in order to accumulate liquidity provider tokens in farms Profit farming on the decentralized exchange (DEX ) Pangolin and Trader Joe. They were then sold when the hacker fled with the loot.
Zabu is zeroing the reward so users can withdraw funds after discovering that Zabu farms have been hacked. The research team is currently planning to take screenshots from before the hack, but are also looking for a solution to help those who bought after the hack.
The foundation will distribute ZABU v2 to affected people and resume agriculture after the hack as v2 for Zabu v1 Staking Pool.
“This way, people who lost their money before the hack get their ZABU distributed and continue to support the protocol if they want. Buyers who have been hacked can also participate in Farm V2 by staking what they bought in the Zabu V1 staking pool. “
ZABU price is falling
The removal of too much ZABU caused the price to drop near zero, with ZABU trading at around $ 0.004 on Sunday (September 12). After the hack, the price currently fell to $ 0.0002.
ZABU price table | Source: CoinGecko
Zabu Finance is the latest in a long list of DeFi protocols to be attacked in 2021 data DeFiYields REKT, $ 1.6 billion has been lost to hacks, scams and rug pulls in the last 5 years.
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According to BeinCrypto