- WOOFi launched a autopsy report confirming an $8.75 million misuse of its Arbitrum lending market.
- The decentralized alternate supplied a ten% whitehat reward to the attacker.
Decentralized alternate WOOFi suffered an $8.75 million hack that focused its credit score market on Arbitrum, in line with a report launched by the platform on Wednesday.
In a postmortem, the WOOFi crew famous that an attacker manipulated its Artificial Proactive Market Making (sPMM) algorithm.
Following the suspension of the rigged contracts, an investigation into the assault revealed that the hacker had carried out a sequence of credit score blitz assaults that started on March 5 round 15:49 UTC.
“The exploit consisted of a sequence of flash loans that used low liquidity to govern the value of WOO to be able to repay the flash loans at a cheaper price,” the crew famous.
Throughout the assault, the exploiter borrowed roughly 7.7 million WOO tokens in addition to different cryptocurrencies. They then offered these tokens to WOOFi, inflicting sPMM to incorrectly alter the WOO token worth to nearly zero.
With the anomalous costs, the attacker proceeded to rapidly alternate 10 million WOO 3 times.
Whereas numerous blockchain safety platforms, together with PeckShield, Chainalysis, Hypernative, and Wintermute, rapidly took benefit of the exploit, the attacker has already made $8.75 million in revenue.
WOOFi gives 10% whitehat bounty
WOOFi is providing a ten% whitehat reward to the attacker as efforts to recuperate the funds proceed. The platform additionally launched a bounty on Arkham Intelligence.
In the meantime, the alternate says its WOOFi Professional, Stake and Earn providers haven’t been affected and stay “totally purposeful”.
The WOOFi crew posted on X:
3/ We’ve already began an effort to acquire these funds, with a ten% whitehat reward offered to the exploiter. As well as, a reward was introduced @ArkhamIntel for anybody who can present further info. https://t.co/oSG0CQa4oP
— WOOFi (@_WOOFi) March 5, 2024
The worth of WOO plummeted after the assault, from round $0.59 to a low of $0.48. The worth of the token has modified to $0.52 on the time of writing.
