The overall worth of belongings locked on the decentralized change (DEX) WOOFi plunged by nearly 20% to $45 million after it confirmed it was exploited by way of a flashloan assault.
The hack
Earlier at present, WOOFi detailed the way it fell sufferer to a hacking episode inside 13 minutes.
The mission defined {that a} hacker diligently manipulated its Artificial Proactive Market Making (sPMM) algorithm by orchestrating a collection 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 belongings and dumped them on the platform.
This maneuver triggered an inaccurate valuation of the mission’s native token, WOO, plummeting its value 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 mentioned 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 had 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 mission has introduced a ten% bounty incentive for the hacker, ought to they function as a white hat.
In the meantime, the mission acknowledged that different WOOFi contracts, together with WOOFi Stake, Earn, and Professional, had been unaffected and stay totally useful.
As well as, WOOFi is actively soliciting additional particulars relating to the exploit, providing a bounty by means of Arkham Intelligence for people who furnish pertinent data.
“We aim to have WOOFi Swap fully functional again within the next two weeks. This is the first time an incident like this has happened to us, and we want to make sure it doesn’t happen again,” It added.
Following the incident, WOO is down 10% and trades at $0.5315 as of press time.
