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Avalanche-Based Zabu Finance Exploited in $3.2M Hack

source-logo  coindesk.com 13 September 2021 09:32, UTC

Zabu Finance, an Avalanche-based decentralized finance (DeFi) protocol, has been exploited for $3.2 million.

  • The protocol tweeted Saturday that its Spore Pool was possibly under an exploit, and confirmed the attack on Sunday.
  • The attacker used Zabu’s “Transfer Tax” mechanism to mint tokens, causing their value to slide to zero from about $0.0047.
  • Having removed 4.5 billion ZABU tokens, the attacker then dumped them on the Trader Joe’s and Avalanche Pangolin exchanges on the Avalanche network.
  • Zabu plans to take a snapshot of the situation immediately before the exploit to protect both users who lost money pre-hack and those who bought in afterwards.
  • The exploit totaling an estimated $3.2 million is probably the “first big exploit” on the Avalanche blockchain, according to DeFi analytics provider DeFiprime.

Read more: Can Avalanche Keep It Up? DeFi Users Rush In as Incentives Roll Out