DENVER – Decentralized finance (DeFi) project bZx has suffered an attack in which a hacker successfully gamed multiple DeFi protocols to extract $350,000 from the platform, about 2 percent of the assets under management.
In response, the company took down its lending and trading protocol Fulcrum at 7:00 UTC. The company was presenting at ETHDenver during the hack. The hackers took advantage of the company's pricing oracle to trick the protocol into giving up the cash. bZx depended on only one oracle for pricing, according to sources.
The firm, which has yet to reappear at EthDenver, later confirmed in a tweet it will compensate lenders for potential losses.
The attack could be symptomatic of a continuing issue in DeFi, said Chainlink CEO Sergey Nazarov at the event: how to source price information.
The attack was even more notable because of its timing as the team had to deal with the hack during the ethereum community’s EthDenver hackathon, which largely focuses on DeFi. Read More...