By Shelly Melancon (Switzerland)
Decentralized Finance protocol, Bondly Finance is the latest victim of an exploit that saw the hackers cart away with some of its native token, $BONDLY. According to reports, about 373 million of $BONDLY were stolen. If the stolen tokens were converted to stablecoins, it would be equivalent to $22 million. However, the protocol was yet to release more details about the hack as of the time this report was written.
Bondly Finance updated users on its official Twitter page about the attack, where it advised users to stop trading the native token as it had been compromised. It assured users of the continuity of its operations. Although Bondly Finance did not say anything about the hackers as it claimed they were unidentified, another DeFi-based account released posted the hackers’ address an hour before Bondly issued the warning.
The DeFi protocol was founded by Brandon Smith in 2020 and is built on the Polkadot ($DOT) blockchain. Bondly Finance aims to provide a range of DeFi products including non-fungible tokens to crypto enthusiasts and digital art collectors. It allows users to carry out staking activities as well using the $BONDLY native token. Users can also swap tokens with the protocol’s BondSwap product, and perform activities such as yield farming using its BondDex product.
DeFi Space Suffers Series of Attacks and Exploits
This is the umpteenth time that an attack like this is occurring on the decentralized finance space. As there is no central authority overseeing activities in space, it is very easy for exploits like this to occur. Rugpulls and flash loan attacks are also common occurrences. Last week, Tokenhell reported that the multichain DeFi protocol, ChainSwap, lost about $8 million in its $ASAP native token and other tokens trading on the platform. ChainSwap suffered a hack, leading to the discontinuance of $ASAP token trading.
The multichain protocol told users that new $ASAP tokens will be minted and distributed to holders and investors on the DEX including those on centralized exchanges. Other tokens affected by the exploits were Wilder Worlds ($WILD), Antimatter ($MATTER), Optionroom ($ROOM). Holders of these tokens were assured of compensation as well.
In a related development, Impossible Finance (IF) faced a flash loan attack earlier in July and hackers were able to steal 230ETH equivalent to $500,000 at the time. IF is a multichain incubator for DeFi activities. Similar attacks have also taken place on BurgerSwap, PancakeBunny, BeltFinance within this year.
For exploits and hacks like the above, hackers take advantage of vulnerabilities in the smart contracts. In view of these vulnerabilities, DeFi protocols have been advised to work with smart contract audit firms like Certik in order to ensure their protocols are devoid of bugs.
Price of $BONDLY Token Crumbles by 60%
As exploits of this nature occur on protocols, the prices of their native tokens usually crumble. BondlyFinance’s $BONDLY token declined by 60% following the attack. Before the exploit, it was trading at a daily high of $0.063, then dipped to $0.023 after the attack.
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