Onyx suffer Breachs As Attacker Swaps ETH for PEPE , Precision Loss Of over &2M
Decentralized finance (DeFi) protocol Onyx recently experienced a significant security breach that resulted in the misappropriation of about $2.1 million.
According to The Block, citing blockchain security firm BlockSec, the breach was due to a specific flaw within Onyx's system, termed as "precision loss."
"The attacker took out a flash loan of a substantial amount of ETH, swapped it for PEPE, and donated it to a specific pool to manipulate the exchange rate.
Subsequently, due to the so-called precision loss, the attacker was able to withdraw more of the underlying asset by burning fewer shares," Matthew Jiang, BlockSec's Director of Security Services, said
Join the conversation at Benzinga's Future of Digital Assets conference on Nov 14. The event promises to address key concerns, trends, and solutions in the rapidly evolving digital asset landscape.
Investigations reveal that the vulnerability stemmed from an older forked rendition of Compound V2, a component deeply integrated into Onyx's foundational structure.
The latest on-chain data indicates that the attacker transferred a sum of 700 Ether
(valued at approximately $1.25 million) to Tornado Cash, a cryptocurrency mixing service.
Onyx suffer Breachs As Attacker Swaps ETH for PEPE , Precision Loss Of over &2M
Decentralized finance (DeFi) protocol Onyx recently experienced a significant security breach that resulted in the misappropriation of about $2.1 million. According to The Block, citing blockchain security firm BlockSec, the breach was due to a specific flaw within Onyx's system, termed as "precision loss."
"The attacker took out a flash loan of a substantial amount of ETH, swapped it for PEPE, and donated it to a specific pool to manipulate the exchange rate.
Subsequently, due to the so-called precision loss, the attacker was able to withdraw more of the underlying asset by burning fewer shares," Matthew Jiang, BlockSec's Director of Security Services, said
Join the conversation at Benzinga's Future of Digital Assets conference on Nov 14. The event promises to address key concerns, trends, and solutions in the rapidly evolving digital asset landscape.
Investigations reveal that the vulnerability stemmed from an older forked rendition of Compound V2, a component deeply integrated into Onyx's foundational structure.
The latest on-chain data indicates that the attacker transferred a sum of 700 Ether (valued at approximately $1.25 million) to Tornado Cash, a cryptocurrency mixing service.