Onyx Protocol Vulnerability Exposed $2.1M Drained in DeFi Attack!

Onyx Protocol Vulnerability Exposed: $2.1M Drained in DeFi Attack!

News, Defi news

In a shocking turn of events, the decentralized liquidity market, Onyx, has fallen prey to a cunning attacker in the latest decentralized finance (DeFi) exploit, resulting in a staggering loss of $2.1 million. This incident has sent ripples through the cryptocurrency community, raising concerns about the security of DeFi platforms.

The exploit targeted the oPEPE market on Onyx, where the attacker abused the protocol by depositing funds to borrow from other markets. Experts at PeckShield, a blockchain security firm, revealed that the attacker managed to exploit a known rounding issue within the popular CompoundV2 fork, leading to the significant loss.

According to PeckShield, the attacker utilized a flash loan of 4,000 ETH borrowed from Aave, which was swiftly swapped to PEPE. This strategic move allowed the attacker to manipulate the oPEPE smart contract on Onyx. Subsequently, the stolen assets, totaling 1,130 ETH, were discreetly transferred to Tornado Cash, a privacy-focused Ethereum mixer, making it challenging to trace the funds.

This incident sheds light on a vulnerability present in an old forked version of Compound V2, which Onyx had incorporated into its system. The same bug had been exploited earlier in the Hundred Finance hack, resulting in a staggering loss of $7 million to the protocol. It appears that the DeFi space is grappling with recurring challenges related to security, necessitating constant vigilance and innovative solutions from industry players.

The Onyx Protocol team, in collaboration with security experts, is actively investigating the exploit to identify the perpetrator and prevent future breaches. The DeFi community is urged to remain cautious and implement robust security measures to mitigate such risks in the future.

This incident serves as a stark reminder of the evolving nature of cybersecurity threats in the decentralized finance sector. As the industry continues to grow, it is imperative for projects and users alike to prioritize security, conduct thorough audits, and stay informed about the latest developments to safeguard their assets effectively.

Stay tuned for further updates as the investigation unfolds and the Onyx Protocol team works tirelessly to enhance the platform’s security measures, ensuring a safer environment for all users in the decentralized liquidity market landscape.

ETH, hack, Onyx