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The DeFi platform Indexed Finance suffered an incident that allegedly caused it to lose at least $16 million in funds.
It is still too early to speak of a hacker attack, but it appears that at least two pools have been emptied.
Attack on Indexed Finance
The platform announced via Twitter that it was aware of an incident that allegedly affected pools DEFI5 and CC10.
We're aware of an incident that has just taken place within the DEFI5 and CC10 pools.
Looking into it.
— Indexed Finance (@ndxfi) October 14, 2021
The platform has currently blocked other pools that are safe.
The founder of the platform, Dillon Kellar announced that he understands what happened, and an analysis will follow.
For both of the emptied pools, he has posted transactions on Etherscan that suggest the token theft was massive.
Alright I found where this broke.
The pools controlled by the Sigma committee (DEGEN, NFTP, FFF) have been frozen and are not vulnerable to this exploit, but will require a proxy upgrade.
Post-mortem coming soon.
— Dillon Kellar (@d1ll0nk) October 14, 2021
According to the bot on Discord, the two pools that are now inaccessible are left with $288,000 and $2 million in TVL, respectively. The other pools have much higher amounts, which suggests that the hack is localized.
The community is certain: it was a hacker attack
On Discord, Indexed Finance users admit that the platform was the victim of a hacking attack and it is assumed that at least 16 million dollars have disappeared.
The hope of those who have realized that they have lost everything is that this hack is a repeat of what happened to Poly Network. In that case, the hacker first emptied the platform and then returned the funds: all he wanted was to demonstrate that there was a vulnerability. But some are rather pessimistic.
The price of the NDX token drops
As soon as the news spread, the price of the Indexed Finance Governance Token, (NDX) plummeted. It is currently down 22%. The token is at position 3,411 on CoinMarketCap, it was worth $3.5 but is currently at $2.5.
It is still unclear whether the incident is a tombstone for the DeFi project or whether there will be a way to recover the funds or possibly compensate users and restart.
The platform has only been able to warn users not to buy DEFI5, CC10 and FFF, as they are completely out of sync. But the cause of the incident has been identified and will soon be disclosed. The message concludes:
“Our apologies to all affected”.
In case there's any doubt – don't go buying the dip on DEFI5, CC10 or FFF (which contains those two) right now: their asset weightings are completely out of sync.
Root cause identified, post mortem coming soon.
Our apologies to all affected.
— Indexed Finance (@ndxfi) October 14, 2021