Despite the rapid growth of the cryptocurrency world, security risks remain a major concern. This week saw several significant DeFi hacks, leading to millions of dollars in losses and shaking investor confidence. These incidents also exposed weaknesses in decentralized finance protocols.
Here’s a breakdown of the key breaches that occurred this week.
Bedrock, a multi-chain liquidity re-staking protocol, was struck by a vulnerability in its uniBTC pool. Hackers exploited a flaw in the smart contract that allowed uniBTC to be minted at the wrong 1:1 exchange rate with the platform’s native currency. This allowed the attackers to drain liquidity, resulting in a $2 million loss.
Bedrock has since confirmed that BTC and wBTC reserves are still intact and is now working with audit teams to investigate the hack and recover funds where possible.
Truflation, a decentralized inflation data provider, lost $5 million from its treasury multi-sig and personal wallets across multiple blockchains. The breach, first reported by on-chain investigator ZacXBT, occurred after hackers used malware to access the keys and wallets crucial to the platform.
Onyx Protocol also fell victim to hackers, losing $3.8 million. Attackers found a flaw in the Compound V2 code, allowing them to manipulate exchange rates and inflate rewards through self-liquidation.
Adding to the damage, a vulnerability in the NFTLiquidation contract was discovered, which worsened the situation by increasing the potential for losses. This incident highlighted the need for stronger security and smarter validation in DeFi contracts.
With over $10 million lost across these platforms, the security of decentralized finance is under the spotlight. These breaches serve as a stark reminder that DeFi platforms must strengthen their defenses to avoid further attacks and protect their users.
Stay updated with the latest DeFi hacks and security news through our weekly hack report!
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