Poof...$6.4M gone 🔮
And for their next act… your funds will disappear!
Abracadabra Finance, the DeFi protocol behind the MIM stablecoin, known as Magic Internet Money, suffered a serious security incident yesterday.
Blockchain security firms Peckshield and Blocksec reported that the protocol may have lost $6.4M from its smart contract, leaving just over $29M worth of assets on the platform.
According to Blocksec, the attackers took advantage of a rounding issue in the protocol's smart contract, allowing them to borrow large amounts of MIM without needing the necessary amount of collateral.
The attack caused the price of MIM to depeg to $0.84 before rebounding back to $0.98 after the team announced that it would be using its DAO treasury to repurchase MIM from the market and burn it.
However, the protocols' governance token, SPELL, has continued to plunge since the incident, falling by 9.3% from $0.00053 yesterday to $0.00049 as of the time of writing.
In their latest security update on X, the Abracadabra team has highlighted in their initial findings that no user funds are at risk, and the issue has been fully mitigated.
The team has also sent an on-chain message to the hacker, offering them a chance to return the funds in exchange for a bug bounty.
Editor's Take:
This isn't the first time that MIM has depegged, given Abracadabra's tumultuous history during the collapse of Luna and FTX. Besides that, the founder of Abracadabra, Daniele Sesta, has been involved in plenty of projects that have since fallen from grace, such as Wonderland and Solidly, so this is a regular reminder to degens out there to DYOR and perform due diligence before aping (or at least leaving funds in a dApp for an extended period of time).
0 Komentar untuk "🦎🚀 Are you ready for the JUP airdrop? 🪐"