DeFi protocol bZx was attacked for a third time, with a loss of 8 million USD

 218 total views


2021-03-22 12:02:41

The decentralized financial lending protocol bZx has currently lost nearly $ 10 million in hacks this year.

bZx, a decentralized financial lending protocol, was hacked for the third time this year, resulting in losses of more than $ 8 million in user deposits. This is defined as 30% of the total value locked in the bZx protocol.

Decentralized finance, or DeFi, continues to outperform the crypto market. Efforts to create decentralized financial instruments separate from traditional centralized institutions have been and are booming in the crypto industry – but DeFi is not without problems. The most recent bZx hack is just another name in a series of growing problems facing the DeFi sector.

“There are a lot of extraordinary innovations in DeFi, however, there are also many products that have not been risky tested. Users and investors must be careful before committing to the fund, ”said Charles Storry, co-founder of PhutureDAO.

When news of the hack came out, the bZx development team advised the client above Twitter that everything is secured and there is no need to close the loans.

However, an engineer is believed to have discovered bZx’s security vulnerability several hours before the attack occurred.

Marc Thalen, chief engineer at Bitcoin.com, declare informed the bZx development team that users could clone “i tokens” on the protocol, causing risk losses of up to $ 20 million. “At the moment, no founders are answering,” Thalen said in a tweet.

What impact did this have for DeFi?

DeFi is still an experimental innovation in cryptocurrency. That fact may keep future investors patient as the market continues to evolve, but repetitive hacks can turn the crypto community away.

Storry added that bZx “has repeatedly failed to ensure the safety of users money. How many more opportunities will the community and investors have to give bZx? “

In contrast, Aave’s founder, Stani Kulechov, used Twitter in favor of bZx. “The recent bZx incident shows that vandalism is easier than building. They had a lot of official checks and verifications and it took considerable time before going back to main-net, but all those efforts are still unsafe, ”he said. Kulechov said.

According to Decrypt



#DeFi #protocol #bZx #attacked #time #loss #million #USD

Related Posts

Leave a Reply

Your email address will not be published.

Close Bitnami banner
Bitnami