Good day everyone,
I hope you are all well and having excellent day, welcome to CryptoGod-1’s blog on all things crypto. With the great recent news that Publish0x is looking to move onto the Optimism Network, it seems fitting that big news has emerged of a DeFi exploit which cost Exactly Protocol around $12m.
Exactly Protocol Bridge Exploit
The Optimism-based decentralized crypto lender Exactly Protocol has suffered from a bridge exploit, costing the protocol as much as $12 million worth of ETH on Friday the 18th of August 2023. It was reported by the blockchain security firm De.Fi that the hacker made use of an exploiter contract on Ethereum. This allowed them to transfer deposits from the Protocol to Optimism before bridging the stolen funds back to Ethereum.
It is believed that around 7,160 ether (ETH) was stolen in the process, which is roughly worth around $12.04 million at current prices. After the exploit, the total value locked on the protocol fell sharply. It went from around $36 million to under $26 million, according to data on DeFi Llama. It has since dropped to around $10 million as funds are withdrawn and the value of the protocol is plummeting, representing a decline of around 70%. At the same time, the protocol's native governance token (EXA) has also fallen by more than 30%, with the trading prices at time of writing sitting around the $4.08 mark.
The team at Exactly Protocol were quick to release a statement on their Twitter Account, noting that they are actively investigating a security issue within the protocol. The protocol was temporarily paused to ensure the safety of funds, but users were still able to withdraw their assets.
With cross-chain bridges being relatively new technology they have emerged as one of the main targets for hackers of late. Reportedly over $2 billion has been lost in bridge-related hacks last year. The DeFi sector has been a main target for hacks, with Solana-based DEX Cypher Protocol hacked for around $1 million in crypto-assets earlier this month. Zunami Protocol also lost around $2 million in a price manipulation scam made possible by donating to the protocol. Hundred Finance, a lending and borrowing DeFi protocol on the Optimism Network was also hacked back on the 15th of April, where $7 million worth of crypto assets was taken.
Tough times for those in the DeFi space as hacks once again remain the main focus. With the market crashing, it is never nice to see funds lost and stolen like this.
I have recently done a writeup on the Optimism Network, which can be found here: $Op & Optimism Network
Have a great day.
Peace. CryptoGod-1.
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