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DeFi risks; Hackers drain $500k in LINK, wrapped ETH, and other alts from Balancer pools


Cryptocurrency / Cryptocurrency 15 Views comments

Hackers made away with $500k worth of Wrapped Ether, Chainlink, and Synthetix from Balancer pools early on Monday, after a deflationary token model was taken advantage of.

Balancer addressed the issue soon after, confirming the hack and stating the protocol was not compromised. All other tokens remain unaffected, and the exchange continues to function.

$500k stolen

Two balancer pools were affected on Monday morning after hackers used a vulnerability in the contract models of a token, Statera (STA), which runs on a “deflationary” model.

Balancer pools are a type of automated market makers (AMM), providing on-chain liquidity for multiple assets and keeping them balanced in certain proportions.

For the incident, hackers sent a complex transaction to Ethereum Mainnet which caused an attack on one of the Balancer Pools, as per a report by 1inch exchange, a DEX aggregator. Soon after, another transaction led to the draining of funds from another Balancer Pool.