On Monday, the Polygon (dex) based decentralized exchange Quickswap lost $220,000 in a flash loan exploit and after the attack the team clarified that the Quickswap Lend platform would be terminated.
Quickswap hacked for $220,000, Dex Project Sunsets lending platform
2022 has been quite a year for decentralized finance (defi) hacks as billions have been stolen due to errors, flash loans, faulty smart contracts and unverified lines of code. October 24, Quickswap Explain that the XYZ market loan market was compromised for $220,000.
“Quickswap Lend closes,” the team’s Twitter account noted Monday. “$220,000 was leveraged in a flash loan attack due to a vulnerability with Curve Oracle, which [Market XYZ] Was using. Only the XYZ market loan market was compromised. Quickswap contracts are not affected.
Quickswap also added that Qi Dao provided the seed funds for the XYZ market loan market and stressed that “no user funds were compromised”. The dex encourages users with funds deposited in the open markets of XYZ Market to withdraw them immediately as Quickswap Lend will be removed.
The recent Quickswap attack follows the Hacking mango markets and the recent Olympus DAO exploit. Olympus, like a number of recent challenge projects, recovered the funds after the exploit after negotiating with the hacker. Last week Bitcoin.com News reported on the Chainalysis study which shows hackers have earned more than $3 billion this year from 125 exploits.
Regarding the Quickswap exploit, blockchain auditing and security company Peckshield Explain that the vulnerability was discovered on October 11, 2022. “It’s a price manipulation issue”, Peckshield tweeted. “The Mimatic market uses Curvepooloracle for price feeding, which is manipulated to borrow funds from the market,” added blockchain security analysts at Peckshield.
Qi Dao, the provider of Market XYZ loan market seed funds, is the creator of the stablecoin Mimatic (MAI). Blockchain and Web3 security auditor, Chainsecurity, revealed the exploit in the blog post shared by Peckshield after the hack. Mimatic (MAI) slipped to a low of $0.9895 on Oct. 23, according to statistics from coingecko.com, but stablecoin MAI is currently trading hands for $0.993 per unit at the time of writing.
What do you think of the recent Quickswap exploit? Let us know what you think about this topic in the comments section below.
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