Cryptocurrencies

Pickle Finance protocol lost $ 20 million in hack – Cryptocurrencies

A new attack in DeFi: unfortunately it no longer surprises anyone in the cryptosphere. Pickle Finance loses approximately $ 20 million as a result of an attack. The hackers didn’t use the classic flash loan recipe this time around.


A siphon in the DeFi

DeFi is the victim of a new attack: hackers have targeted the yield farming protocol, Pickle Finance.

The attack was detected by specialists ETH who shared their suspicions on Twitter.

The hack was not executed through a flash loan, unlike the wave of attacks during the month of November 2020.

Pickle Finance works like a robo-advisor that swaps investors’ funds between different DeFi protocols to maximize their return on investment.

Pickle would have deployed a new strategy to maximize returns on the DAI ; on November 21, 2020, the liquidity pool cDAI was reportedly siphoned off for close to $ 20 million.

Pickles and Gars

The co-founder of DeFi Italy, Emilio Bonnassi, who describes himself as a white hat hacker, explained on Twitter that the attack was carried out through the creation of an evil jar, smart contracts that have the same interface as the original protocol jars.

The hacker then proceeded to an exchange between the 2 jars and was able to withdraw the 20 million dollars of deposits.

The Total Value Locked of Pickle Finance currently hovers around $ 75 million, while the protocol’s native token has lost 50% of its value.

After the attack on Harvest Finance, Pickle seemed well positioned to become one of the most important players in yield finance protocols.

Harvest Finance had moved all his DAI and his USD Coins (USDC) to more secure pools until the modus operandi of the attack is determined.

Pub

Cryptoassets are highly volatile unregulated investment products. No EU investor protection. Your capital is at risk.

Hackers have proven that they have a creative mind and that there are many routes they can take to get to and open the vault. DeFi protocols would therefore present several loopholes that facilitate the work of hackers. DeFi may have the potential to make Bitcoin (BTC) out of date in 5 years in terms of “TVL vs Bitcoin price”, but the industry would already need to be able to secure their funds to survive by then. Bitcoin continues its road to new ATHs, with a few rallies but without the explosive prowess of DeFi during the summer of 2020.

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