In recent news, Conic Finance, a decentralized finance (DeFi) construct, has suffered significant losses after two separate hacking incidents. The violation cost Conic Finance a whopping sum of over $3.2 million in Ether (ETH), a popular cryptocurrency.
Initially, the Conic Finance workforce labelled the first ordeal as a “re-entrancy attack”. The ordeal exploited a security loophole in Curve V2 pools, gifting the hacker some 1,700 ETH tokens. Swiftly managing the disaster, the team ensured that the exploit “cannot be done again” for the same Omnipool. They affirmed the community that none of the other Conic Omnipools were impacted by this issue.
But the secure feeling didn’t last long. Shortly after, Conic Finance suffered another exploit, leading to the drainage of approximately $300,000 worth of tokens from the crvUSD Omnipool. Responding quickly, the team executed maximum security measures and put a temporary halt to all Omnipools, further preventing any other loss.
It’s worth noting that this second attack was independent of the first ETH Omnipool exploit. Following these unsettling sequence of events, the team acknowledged that the past couple of days were ‘exceptionally testing’ for them.
Consequently, in their post-attack update, they implied that a part of both attack blunders were befallen due to their indirect association with Curve, a decentralized exchange (DEX) for stablecoins. They stated interaction with “imbalanced Curve pools” stirred up the vulnerability, which ended up being exploited by the hackers.
On the brighter side, Curve’s team received appreciation for their ‘astonishing assistance and support’ during this crisis. Remarkably, despite these unexpected setbacks, Conic Finance expressed its determination to recuperate the misappropriated funds and revitalizing their security infrastructure.
Meanwhile, the CNC token, the protocol’s token, took a sharp dive by 45% over the past week as per data from CoinGecko. The CNC token stands listed only on MEXC and CoinEx, and a few decentralized exchanges, being relatively new to the DeFi sphere.
Despite these promising resolutions, the episode only reasserts the need for enhanced security architecture to sustain the main idea of decentralization. The world quickly grasped the many capabilities of blockchain and cryptocurrency, but the recent hits remind us that it’s equally crucial to retain a healthy dose of scepticism around security and safety.
Source: Cryptonews
