- The incident was reported by blockchain security firm PeckShield.
- Users should remove access to keep their funds and activities secure.
On August 9, PeckShield, a blockchain security company, announced new vulnerabilities affecting DeFi initiatives. The company claims that a reentrancy assault affected Aave’s Earning Farm, leading to the loss of at least $287,000 in Ether.
A reentrancy attack occurs when an attacker repeatedly submits and withdraws a money request in an attempt to trick the system into giving the attacker more money than it really possesses.
Similarly, cybercriminals use this technique to their advantage by repeatedly calling functions that interact with contracts. Before the initial function call is done in order to get unauthorized access to resources.
Rising DeFi Attacks
Users should remove access to keep their funds and activities secure. Also, by taking this measure, one may be certain that their accounts are safe from additional intrusion or harmful activity.
It’s not apparent whether this assault has anything to do with the exploits that have been found in Curve Finance’s pool. On July 30th, reentrancy attacks drained nearly $61 million from the DeFi protocol’s stable pools. Earning Farm blockchain contracts were reviewed by security company Slowmist, as claimed on its website.
Moreover, attacks on the protocol are nothing new. Earning Farm had 750 ETH stolen from their system in two separate flash loan incidents in October 2022. In flash loan attacks, the hacker borrows a significant quantity of crypto in a single transaction, alters its value over a series of transactions. And then pays back the loan, all inside the same transaction. These assaults make money off of pricing discrepancies and short-term inefficiencies in the protocol.
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