DeFi Lending Protocol Ola Finance Exploited for $3.6M

Table of Contents

[ad_1]

Key Insights:

DeFi lending protocol Ola Finance announced an exploit that allowed an attacker to steal $3.6 million.
The attacker took advantage of a reentrancy bug in Ola’s smart contracts.
This comes just a week after the exploit of Axie Infinity’s Ronin network.

It was no April Fool joke for Ola Finance when over $3.6 million were siphoned off the protocol in a recent exploit. DeFi protocols have been an easy target for hackers as more and more security breaches have surfaced over the last couple of years.

Another DeFi hack

On April 1, decentralized lending protocol Ola Finance revealed that it suffered an exploit that allowed hackers to grab $3.6 million worth of cryptocurrencies from the platform.

Ola Finance published a summary of the exploit, revealing that the value stolen from the protocol summed up to around $4.67M in ETH, BTC, and FUSE prices. The attackers managed to steal around 216,964 USDC, 507,216 BUSD, 200,000.00 fUSD, 550.45 WETH, 26.25 WBTC, and 1.24 million FUSE.

PeckShield, a blockchain security firm that worked with Ola to investigate the exploit, disclosed that the attacker took advantage of a ‘reentrancy’ bug in one of Ola’s smart contracts. The hack was made possible due to the incompatibility between Compound fork and ERC677/ERC777-based tokens, which have the built-in callback functions misused to allow reentrancy to drain the lending pool.

Ola’s DeFi protocol operates across various blockchains. In the recent attack hackers targeted its deployment on the Fuse network. Fuse is an Ethereum Virtual Machine-compatible blockchain with around $12.8 million in total value locked (TVL) before the attack.

Hackers Targeting DeFi

The Ola Finance hack comes only a few days after the $625 million exploit of Axie Infinity’s Ronin network. The Ronin hack is one of the largest in DeFi history, where a whopping 173,600 ETH and 25.5M USDC were drained from Ronin bridge just last week.

Furthermore, the reentrancy attack used for the Ola Finance hack isn’t the first one this year. On March 16, attacker siphoned over $11 million from Agave and Hundred Finance by introducing a reentrancy bug and using a flash loan exploit to siphon funds, as reported by FXEmpire.

Even though the Ola Finance hack is relatively smaller than the aforementioned attacks, it reminds us of the multimillion-dollar thefts that are now fairly common in DeFi.

This article was originally posted on FX Empire

More From FXEMPIRE:

[ad_2]

Source link

Tags: Amazon Business Credit Card, American Airlines Business Class, Att Business Login, Austin Business Journal, Best Bank For Small Business, Best Business Bank Accounts, Best Business Schools In Us, Best Business To Start, British Airways Business Class, Business Attire Men, Business Card Ideas, Business Casual Shoes For Women, Business Continuity Planning, Business Entity Search, Business Letter Template, Business Management Degree, Business Manager Facebook, Business Plan Outline, Business School Rankings, Colorado Business Search, Delaware Business Entity Search, Drop Shipping Business, Family Business Bet, Fox Business Live, Georgia Sos Business Search, Google Business Account, Harvest Small Business Finance, How To Build Business Credit, Is Saturday A Business Day, Is Sears Still In Business, Microsoft 365 Business, My Business Google, Name Generator Business, None Of Your Business, Ny Sos Business Search, Open A Business Bank Account, Pa Business Search, Plus Size Business Casual, Pnc Business Banking, Sos Business Search Ca, Sunbiz Business Search, Taking Care Of Business, The Business Of Being Born, Turbotax Home And Business 2020, Tx Sos Business Search, Venmo For Business, Verizon Business Plans, Virtual Address For Business, What Are Business Days, Women Business Casual