[NEWS] DeFi faces another high-profile attack as Balancer loses $500K

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legendary

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Quote from: Doranile432 on June 30, 2020, 01:48:26 AM

Not on the use case itself, this is not DeFi at fault but the project team who aren't capable of using better security features on their project, please stop making DeFi looks bad, decentralized Finance is a new use case, how team member will handle it will be different from one another

I am not making defi look bad. It is doing this by itself. Read the news, hacked cryptocoins from Ethereum might be more in total compared to hacked cryptocoins from centralized exchanges.

In any case, news update. Balancer Labs will reimburse $500k to its users.

Balancer Labs tweeted Tuesday that all liquidity pools affected in the $500k hack would be fully reimbursed. The firm said a community vote was taken in the regard, with the majority in favor of the decision:

After thorough discussions with the community, the Balancer Labs team decided that it will fully reimburse all the liquidity providers who lost funds in the attack of yesterday. We will also pay out the highest bug bounty available for @Hex_Capital

Source https://cryptoslate.com/defi-platform-balancer-to-reimburse-500k-in-hack-losses-community-threatens-legal-action/

hd49728

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Quote from: leea-1334 on June 30, 2020, 05:22:42 AM

This makes me just super cautious about DeFi. I like the idea of smart contracts but I get the feeling the hackers are better at smart contracts than the platform devs for now, which is why they wait and wait until there are millions and then they activate the flaw. OR worse, insider devs who go rogue.

DeFi is a newest type of hype on technical side. Smart contracts, ICOs, IEOs, lending, staking, masternodes, cold staking. After years in crypto, I don't easily believe in anything that claims to bring changes or evolutions technically. Ideas can be creative and good but to make it goes into real life, and technology with wide addoption, it will take time and many challenges upfront.

Don't believe and make any all in investment with DeFi projects or companies that claim to bring DeFi technology.

leea-1334

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This makes me just super cautious about DeFi. I like the idea of smart contracts but I get the feeling the hackers are better at smart contracts than the platform devs for now, which is why they wait and wait until there are millions and then they activate the flaw. OR worse, insider devs who go rogue.

Jannyh

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This is really terrible, and not safe for business, any exchange be it a decentralised or centralised should be able to put up maximum security before they start operations,this isn't just a matter of Defi( decentralised Finance), hackers are every where,so top notch security should be watched out for.

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Compare rates on different exchanges & swap.

Quote from: Doranile432 on June 30, 2020, 01:48:26 AM

Not on the use case itself, this is not DeFi at fault but the project team who aren't capable of using better security features on their project, please stop making DeFi looks bad, decentralized Finance is a new use case, how team member will handle it will be different from one another

Serious businesses shouldn't be allowed by the DeFi community to handle alot of funds/responsibilities on their platform without proving that they are very safe, secure and decentralized.
They should be well decentralized and secure.
It's not a good idea to mix centralized and decentralized things on "Decentralized" Finance(DeFi). The centralized ones clearly need to have seperate platforms where they will be regulated in the "old way". They can always move over to Defi once they are well decentralized (maybe over 69% decentralized) and safe. And where regulation is supposed to be done decentrally and by network participants.
Things used by the public should to be fully decentralized (and safe) in my opinion.

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This is nothing new, either it's DeFi or not scams will always happen, some projects have weak security while others have strong security measures, the blames are on the team for their inexperience

Doranile432

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Not on the use case itself, this is not DeFi at fault but the project team who aren't capable of using better security features on their project, please stop making DeFi looks bad, decentralized Finance is a new use case, how team member will handle it will be different from one another

bbc.reporter

legendary

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Does anyone or a website have the data on the total of how much was stolen or hacked from centralized exchanges and the total of how much was stolen from Ethereum defi, dapps, dex and smart contracts?

Total Ethereum hack and theft might be more.

Image from kryptomoney.com

Balancer, a non-custodial portfolio manager and automated market maker, was drained of nearly half a million dollars from a sophisticated attacker that was able to exploit a bug in deflationary token pools. They were able to borrow $23 million through a flash loan on dYdX and convert to WETH which was continuously traded in the STA/STONK pool. By draining the balance of STA, its price relative to other tokens was extremely high allowing the attacker to swap for other assets at a much cheaper price.

Unlike the DForce attack that led to $25 million being returned, this attacker took steps to shield his identity and washed all his funds through Tornado Cash. This makes it unlikely that the funds will be returned and will leave Balancer in a deficit.

Source https://messari.io/article/defi-faces-another-high-profile-attack-as-balancer-loses-500k

Topic: [NEWS] DeFi faces another high-profile attack as Balancer loses $500K (Read 184 times)