Raft, a decentralized finance platform, recently experienced a security breach despite undergoing multiple security audits. The breach resulted in a loss of $6.7 million worth of funds. The hacker exploited a smart contract glitch to mint 6.7 million R tokens by borrowing 6,000 Coinbase-wrapped staked Ether (cbETH) on Aave. The primary cause of the exploit was identified as a precision calculation issue during the minting of share tokens, which allowed the attacker to obtain extra share tokens. The unauthorized funds were moved off the platform through liquidity pools on decentralized exchanges Balancer and Uniswap, resulting in proceeds of $3.6 million. As a result of the attack, the R stablecoin experienced a depegging, initially dropping by 50% but later rebounding to around 70 cents. Despite undergoing audits by blockchain security firms, the vulnerabilities leading to the incident were not detected. The attacker sent most of the stolen assets to a burn address, effectively destroying them, and was left with only 7 ETH. Raft has taken immediate steps, including filing a police report and suspending all smart contracts. Users who minted R still have the ability to repay their positions and retrieve their collateral. Raft now faces the challenge of recovering from the financial loss and restoring trust within its user base.
This News Article was automatically generated by Bob the Bot (AI)
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Global |
| Countries | |
| Sentiment | negative |
| Relevance Score | 1 |
| People | None |
| Companies | Balancer, Coinbase, Aave, Uniswap, Trail of Bits, Raft, Hats Finance |
| Currencies | r/CryptoCurrency Moons, Ethereum |
| Securities | None |
