Exploits Abound

Market Meditations | May 2, 2022

The deluge of bad news continued to soak the DeFi world over the weekend. Announcements spread across Twitter Saturday, drawing attention to the latest attack.

  • Rari Capital, a DeFi protocol running on Ethereum offering lending, borrowing and yield farming for decentralized finance, lost $80 million to an exploit Saturday, bringing its TVL down to $315 million according to DeFi Llama.
  • Rari Capital announced Saturday that borrowing had been globally paused due to an exploit affecting various Fuse pools.
  • Peckshield referenced a bug common to “all Compound forks in EVM-compliant chains” as potentially responsible for the theft.
  • This isn’t the first time Rari has experienced attack by exploit. In May last year, an $11 million exploit was executed, causing the protocol’s token to plummet in price.
  • Fei Protocol, a stablecoin protocol which merged with Rari in December, offered the attacker a $10 million “bounty and no questions asked” in exchange for returning the remaining users’ funds.

We might sound like a broken record when we talk about the importance of due diligence, but hacks and exploits seem to be breaking records left and right. Whenever assessing an investment opportunities, it’s never safe to assume a project is secure.

We read security compromises all the time, but for every headline, countless horror stories affect users every day. Minimise your chances of becoming a cautionary tale by checking your security habits here.