Ola Finance’s DeFi Lending Protocol Gets Exploited for $3.6 Million

An open-source, decentralised financial system called Ola Finance has been the victim of a re-entry assault that resulted in the loss of $3.6 million in cryptocurrency.
As Ola Finance summarised the attack and revealed that the stolen protocol value was around $4.67M in ETH, BTC, and FUSE pricing. There were 216,964 USDC, 507,216 BUSD, 200,000 fUSD, 550.45 WETH, 26.25 WBTC, and 1.24 million FUSE stolen by the hackers.

We will soon be publishing an official report detailing the exploit that occurred on the @voltfinance Lending Network and the plan for recourse.
Thank you to @peckshield for providing swift coverage and helping us analyze the root of the exploit.
Read Primer 🧵: https://t.co/UDU10C2YSa
— Ola.finance (@ola_finance) March 31, 2022

About the re-entrancy attack
PeckShield, a blockchain security startup, released a detailed analysis and diagnosis of the vulnerability.
In a re-entrancy attack, a threat actor exploited flaws in Ola Finance’s smart contracts to give a loan based on bogus collateral to the protocol’s decentralised lending platform.
According to the security company. Tornado Cash, an anonymous transfer mechanism, was used by the threat actor to withdraw cash.
Loans were withdrawn from Ola Finance’s decentralised lending platform when the cash from Tornado Cash was moved to the Fuse network, on which Ola Finance operates. 
Using the built-in callback methods of ERC677 and ERC777 tokens, the hack was made possible because of the incompatibility between the Compound fork and these tokens.
Axie Infinity’s Ronin sidechain was attacked for $625 million in a previous assault on decentralised finance (DeFi) systems, making this the latest in a series of attacks. 
After a number of high-profile hacks on DeFi systems, several experts have called for an enhanced examination of smart contract programming.
Hackers Have Their Eyes on DeFi
The $625 million Ronin network attack by Axie Infinity was just a few days before the Ola Finance hack. Ronin has been hacked to the tune of 173,600 ETH and 25.5 million USDC, making it one of DeFi’s biggest ever hacks.
Since the Ola Finance hack, reentrancy attacks have been utilised in several high-profile breaches. A reentry fault and a flash loan vulnerability were used to steal over $11 million from Agave and Hundred Finance on March 16, according to FXEmpire.
DeFi thefts are becoming more widespread, despite the fact that Ola Finance’s intrusion is less than those previously reported.
***

Avatar

Related Articles

Stay Connected

22,014FansLike
3,369FollowersFollow
0SubscribersSubscribe
- Advertisement -

Latest Articles

bitcoin
Bitcoin (BTC) $ 20,693.00
ethereum
Ethereum (ETH) $ 1,192.59
tether
Tether (USDT) $ 0.997103
usd-coin
USD Coin (USDC) $ 0.998146
bnb
BNB (BNB) $ 238.04
binance-usd
Binance USD (BUSD) $ 0.996153
xrp
XRP (XRP) $ 0.343204
cardano
Cardano (ADA) $ 0.483469
solana
Solana (SOL) $ 37.82
dogecoin
Dogecoin (DOGE) $ 0.069481
polkadot
Polkadot (DOT) $ 7.67
shiba-inu
Shiba Inu (SHIB) $ 0.000011
dai
Dai (DAI) $ 0.999702
tron
TRON (TRX) $ 0.066462
avalanche-2
Avalanche (AVAX) $ 19.80
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 20,668.00
leo-token
LEO Token (LEO) $ 5.73
staked-ether
Lido Staked Ether (STETH) $ 1,146.55
matic-network
Polygon (MATIC) $ 0.538484
litecoin
Litecoin (LTC) $ 54.55
ftx-token
FTX (FTT) $ 26.69
crypto-com-chain
Cronos (CRO) $ 0.124055
okb
OKB (OKB) $ 12.21
chainlink
Chainlink (LINK) $ 6.68
stellar
Stellar (XLM) $ 0.117784
near
NEAR Protocol (NEAR) $ 3.59
uniswap
Uniswap (UNI) $ 5.18
cosmos
Cosmos Hub (ATOM) $ 7.68
algorand
Algorand (ALGO) $ 0.322845
ethereum-classic
Ethereum Classic (ETC) $ 16.11
monero
Monero (XMR) $ 119.79
bitcoin-cash
Bitcoin Cash (BCH) $ 109.57
theta-fuel
Theta Fuel (TFUEL) $ 0.052581
chain-2
Chain (XCN) $ 0.086251
flow
Flow (FLOW) $ 1.75
vechain
VeChain (VET) $ 0.024448
apecoin
ApeCoin (APE) $ 5.26
hedera-hashgraph
Hedera (HBAR) $ 0.068460
the-sandbox
The Sandbox (SAND) $ 1.14
tezos
Tezos (XTZ) $ 1.60
decentraland
Decentraland (MANA) $ 0.940005
internet-computer
Internet Computer (ICP) $ 5.69
frax
Frax (FRAX) $ 0.990953
theta-token
Theta Network (THETA) $ 1.31
axie-infinity
Axie Infinity (AXS) $ 15.69
filecoin
Filecoin (FIL) $ 5.71
elrond-erd-2
Elrond (EGLD) $ 55.34
true-usd
TrueUSD (TUSD) $ 0.998358
bitcoin-sv
Bitcoin SV (BSV) $ 58.68
helium
Helium (HNT) $ 10.57