DeFi vulnerability leading to $6.7M exploit ‘not detected’ by auditors


Related articles

Decentralized U.S. greenback stablecoin protocol Raft claims that regardless of a number of safety audits, the agency nonetheless suffered a safety exploit resulting in the lack of $6.7 million final week.

In keeping with the venture’s Nov. 13 autopsy report, just a few days prior, a hacker borrowed 6,000 Coinbase-wrapped staked Ether (cbETH) on decentralized finance protocol Aave, transferred the sum to Raft, and minted 6.7 million Raft stablecoin, dubbed “R,” utilizing a wise contract glitch.

The unauthorized minted funds had been then swapped off the platform by means of liquidity swimming pools on decentralized exchanges Balancer and Uniswap, netting $3.6 million in proceeds. The R stablecoin depegged after the assault. 

In keeping with the report:

“The first root trigger was a precision calculation challenge when minting share tokens, which enabled the exploiter to acquire additional share tokens. The attacker leveraged the amplified index worth to extend the price of their shares.”

The sensible contracts exploited in the course of the incident had been audited by blockchain safety corporations Path of Bits and Hats Finance. “Sadly, the vulnerabilities that led to the incident weren’t detected in these audits,” Raft builders wrote.

The venture says that for the reason that Nov. 10 incident it has filed a police report and is at the moment working with centralized exchanges to trace down the circulate of the stolen funds. All Raft’s sensible contracts are at the moment suspended, although customers who minted R “retain the flexibility to repay their positions and retrieve their collateral.”

Decentralized stablecoins are minted utilizing customers’ crypto deposits as collateral. Final December, decentralized stablecoin HAY depegged in opposition to the U.S. greenback after a hacker took advantage of a smart contract glitch and minted 16 million HAY with out correct collateral. The HAY stablecoin has since re-pegged, partly, as a result of protocol requiring a collateralization ratio of 152% on the time of exploit as a part of threat administration. 

Associated: September becomes the biggest month for crypto exploits in 2023