DeFi Hack Steals $3.2M in ETH from Curve Finance Platform
• Conic Finance, a liquidity pool balancing platform for the decentralized finance (DeFi) protocol Curve, has been hacked and $3.26 million in Ether (ETH) was stolen.
• The root cause of the exploit was identified as the new CurveLPOracleV2 contract.
• According to De.Fi report, over $204 million was lost from DeFi hacks and scams in Q2 of 2023 alone.
Conic Finance Exploit
On July 21st, Conic Finance, a liquidity pool balancing platform for the decentralized finance (DeFi) protocol Curve, suffered an exploit on the Ethereum omnipool resulting in $3.26 million worth of ETH stolen. Web3 risk-alert source Beosin Alert reported that nearly the entire amount of cryptocurrency was sent to a new Ethereum address in just one transaction.
Root Cause Identified
Peckshield provided initial analysis which identified that the root cause came from the new CurveLPOracleV2 contract. Conic Finance quickly confirmed this news on Twitter and disabled ETH Omnipool deposits on their front end following with Conic’s response to the issue being identified.
Previous DeFi Incidents
The latest incident is not unfamiliar to the industry as Web3 portfolio app De.Fi reported that over $204 million were lost from DeFi hacks and scams in Q2 of 2023 alone – a lower figure than what was lost from January till March where over $320 million were lost according to CertiK’s report.
Security Measures & Updates
To prevent similar incidents from happening again, it is important for users to take measures such as using hardware wallets with multi-signature authentication or participating in yield farming activities only through well established protocols with secure smart contracts after conducting thorough research into them before investing any funds into them . Furthermore, it is recommended to keep up with security updates regularly and use caution when interacting with unknown contracts especially those involving flashloans .
Hacks on decentralized financial projects are unfortunately becoming more frequent due to their popularity amongst users seeking higher yields than traditional financial systems can offer; however there are ways to minimize risks by taking precautionary steps such as using secure wallets and staying up-to-date on security updates .