The whole worth of property locked on the decentralized trade (DEX) WOOFi plunged by almost 20% to $45 million after it confirmed it was exploited by way of a flashloan assault.
The hack
Earlier right this moment, WOOFi detailed the way it fell sufferer to a hacking episode inside 13 minutes.
The undertaking defined {that a} hacker diligently manipulated its Artificial Proactive Market Making (sPMM) algorithm by orchestrating a sequence of flash loans.
Leveraging the platform’s low liquidity, the hacker considerably disrupted the value of the WOO token by borrowing roughly 7.7 million WOO tokens alongside different property and dumped them on the platform.
This maneuver triggered an faulty valuation of the undertaking’s native token, WOO, plummeting its worth virtually to zero.
Exploiting this pricing anomaly, the attacker swiftly exchanged 10 million WOO tokens at minimal prices and repeated this course of thrice to accrue substantial illicit income of $8.75 million.
WOOFi stated its transaction monitoring system, alongside different vigilant safety groups inside the crypto group, promptly detected this anomaly. Consequently, the platform’s Swap’s sensible contracts have been swiftly suspended to mitigate additional losses and instigate a complete investigation.
Restoration efforts
WOOFi has disclosed ongoing efforts to reclaim the stolen funds from the hacker. The undertaking has introduced a ten% bounty incentive for the hacker, ought to they function as a white hat.
In the meantime, the undertaking acknowledged that different WOOFi contracts, together with WOOFi Stake, Earn, and Professional, have been unaffected and stay absolutely useful.
As well as, WOOFi is actively soliciting additional particulars concerning the exploit, providing a bounty via Arkham Intelligence for people who furnish pertinent info.
“We purpose to have WOOFi Swap absolutely useful once more inside the subsequent two weeks. That is the primary time an incident like this has occurred to us, and we wish to be certain it doesn’t occur once more,” It added.
Following the incident, WOO is down 10% and trades at $0.5315 as of press time.
