Hackers exploit Onyx Protocol for $2.1m
On Oct. 27, Onyx Protocol, a decentralized peer-to-peer lending platform, experienced a significant security breach, resulting in a loss of approximately $2.1 million due to an exploit in a low-liquidity market. The incident has raised concerns regarding the vulnerabilities present in decentralized finance (DeFi) platforms, particularly when it involves markets with low liquidity. The @OnyxProtocol hack leads to ~$2.1M loss by exploit ing a known rounding issue behind the popular CompoundV2 fork. Basically, the exploit ed oPEPE market was deployed 5 days ago without any liquidity. This empty market was abused with donation to borrow funds from other… https://t.co/ijkXbOyYr2 pic.twitter.com/fbHdZhTz0E — PeckShield Inc. (@peckshield) November 1, 2023 The attacker targeted a known bug—a rounding issue in the CompoundV2 fork, a popular framework in the DeFi space. This vulnerability went unnoticed by Onyx Protocol until blockchain investigator PeckShield identified and reported...