- The hack caused a loss of 4,000 Ether, at the time equivalent to almost $7.5 million.
- Jimbos Protocol was only released less than 20 days ago.
Jimbos protocol is the latest decentralized finance (DeFi) system to be hacked, resulting in a substantial loss of funds in the cryptocurrency market.
Jimbos protocol, the Arbitrum system’s liquidity mechanism, was hacked on May 28 morning, according to blockchain security company PeckShield. The hack caused a loss of 4,000 Ether, at the time equivalent to almost $7.5 million.
In this case, the attacker took advantage of lax oversight over the conversion of liquid assets. Because the protocol’s liquidity is staked in a price range that doesn’t have to be equal, it provides a security vulnerability through which malicious actors might manipulate swap orders.
Underlying JIMBO Token Falls 40%
Jimbos Protocol was only released less than 20 days ago, but it promised a new way of testing that would solve the problems of liquidity and variable token values. Unfortunately, the protocol’s mechanism was underdeveloped, which left it vulnerable to logical attacks. This has resulted in a 40% drop in the value of the underlying token, Jimbo (JIMBO).
PeckShield discovered that the hackers stole 4,090 ETH from the Arbitrum network. As a result, they moved over 4,048 ETH from the Ethereum network via the Stargate bridge and the Celer Network. Attacks against DeFi protocols are not unprecedented. The number of assaults has decreased compared to past years, yet the community is still vulnerable to several vulnerabilities.
The DeFi ecosystem has constant difficulty in protecting against possible vulnerabilities and unauthorized access, despite attempts to improve security measures. The recent flash loan assault on the 0VIX protocol, which caused approximately $2 million in damages, is a prime example.
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