A small decentralized autonomous group (DAO) has suffered a relatively sizeable good contract exploit, resulting in an estimated $120 million being stolen from its protocol.
BonqDAO instructed its Twitter followers on Feb. 1 that its Bonq protocol was uncovered to an oracle hack that allowed the exploiter to govern the worth of the AllianceBlock (ALBT) token.
Bonq protocol was uncovered to an oracle hack, the place exploiter elevated the ALBT worth and minted giant quantities of BEUR. The BEUR was then swapped for different tokens on Uniswap. Then, the worth was decreased to nearly zero, which triggered the liquidation of ALBT troves.
— BonqDAO (@BonqDAO) February 1, 2023
An impartial evaluation from blockchain safety agency PeckShield has estimated the loss from the Bonq hack to be round $120 million, comprising $108 million from 98.65 million BEUR tokens and $11 million from 113.eight million wrapped-ALBT (wALBT) tokens.
Whereas the exploit took impact over a number of transactions, the biggest was $82.19 million at 6:32 pm UTC time on Feb. 1, in response to multichain portfolio tracker DeBank.
Many of the high-scale transactions came about on the Polygon community.
The way it occurred
PeckShield defined that the exploiter was in a position to change the updatePrice operate of the oracle in one among BonqDAO’s good contracts, which meant that they have been in a position to manipulate the worth of the wALBT token.
The @BonqDAO is exploited and its worth oracle is manipulated to extend the #WALBT worth. Right here is the instance hack tx: https://t.co/YPxXMr2nkf pic.twitter.com/XrzExHY6m1
— PeckShield Inc. (@peckshield) February 1, 2023
This triggered the exploitation of the wALBT and BEUR. The hacker then swapped about $500,000 value of BEUR for USDC on Uniswap earlier than burning all 113.eight million wALBT to unlock ALBT.
On-chain safety observer “Spreek” — who was one of many first to identify the exploit — instructed his 18,800 Twitter followers that the exploiter later dumped extra BEUR and ALBT tokens for $500,000 in USDC and 144 ETH ($236,000).
PeckShield and others famous that the worth of the BEUR and ALBT tokens went down significantly in a brief time period:
The actor then walks away by withdrawing the illicit positive aspects with 113.8M #WALBT and 98M #BEUR (valued >$10M). A few of these tokens are then dumped, leading to main drop! #WALBT dropped by >50% and #BEUR dropped by 34% pic.twitter.com/HEYxrcaB5Y
— PeckShield Inc. (@peckshield) February 1, 2023
In a observe up tweet, BonqDAO mentioned it has paused the protocol and is engaged on a restoration answer.
“Different troves stay unaffected. Bonq protocol has been paused. We’re engaged on an answer that may permit customers to withdraw all remaining collateral with out repaying BEUR within the troves. It will likely be launched tomorrow morning CET,” it mentioned.
AllianceBlock — the token issuers of ALBT — additionally shared the information on Feb. 1, explaining to its 51,300 Twitter followers that an exploiter managed to realize entry to 113.eight million ALBT tokens.
The workforce is within the strategy of eradicating all liquidity on Bonq and has halted alternate buying and selling, it mentioned, including that no good contracts have been exploited on AllianceBlock.
ANNOUNCEMENT
There was a current incident involving a number of ALBT Troves on Bonq, with the attacker getting access to round 110M ALBT.
The incident is remoted to those Troves. None of our good contracts was breached or compromised. pic.twitter.com/puntkIPK3G
— AllianceBlock (@allianceblock) February 1, 2023
The announcement from AllianceBlock additionally added that they’d mint new ALBT tokens to these impacted by the exploit up till the time of the announcement.
Associated: Tribe DAO votes in favor of repaying victims of $80M Rari hack
BonqDAO is a decentralized autonomous group that goals to supply self-sovereign monetary companies to people and companies interest-free with out giving up possession of their property.
AllianceBlock is a decentralized infrastructure platform that connects conventional monetary establishments to Web3 purposes.
https://cointelegraph.com/information/bonqdao-protocol-suffers-120m-loss-after-oracle-hack