DeFi Lending Protocol Hundred Finance Lost Over $7 Million
DeFi protocol becomes one of the prime targets of hackers. We see hacks and exploits in Decentralized Finance (DeFi) protocol on a consistent basis. Now DeFi lending protocol Hundred Finance was hacked in Optimism and lost almost $7.4 million.
According to blockchain security firm Peckshield's investigation, the attacker contributed 200 WBTC to manipulate the exchange rate of the protocol’s derivative hWBTC. Then the attacker drained Hundred Finance's pool which causes this huge loss.
Hundred Finance suggested not to speculate about how the hacker was able to exploit and hack the protocol. They are doing more investigation and working with security teams. After a hack, the DeFi team usually tried to reach out to the hackers and convince them to make an agreement so that the stolen funds can be recovered.
DeFi lending protocol Hundred Finance teams are doing the same thing. They sent a message to the hacker and hope the hacker would reach out to them to make an agreement to return the fund.
Looks like it has not made any progress. They made another announcement on Twitter offering $500k rewards so that they get valuable information against hackers and wish the hackers would get arrested and stolen funds would be recovered.
There is a huge upside in Decentralized Finance (DeFi) and at the same consistent hacks and exploitation of DeFi protocol reveal its vulnerability. You cannot overlook the downside of DeFi when you interact with the protocol. Using centralized crypto exchange is risky that causes people to lose money when they trust those exchanges. You also bear the risk of DeFi protocol.
Hope Hundred Finance recovers from this hack since it is not the first time they went through this. Due to a reentrancy attack, Hundred Finance lost $6.5 million worth of ETH last year. More awareness of what’s going on in the crypto industry will help you to take action and make the necessary adjustment to protect your crypto assets.
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