Midas Capital Publishes Post Mortem On $660,000 Hack
Earlier this week, Midas Capital, a DeFi lender, suffered an attack and lost over $660,000. However, the team has published a post-mortem highlighting how the attack occurred.
Following the attack, the DeFi platform paused operations on the Jarvis Polygon pool. The hacker reportedly attacked the pool.
More About The Midas Capital Attack
According to the team behind the platform, the attacker used a new collateral token to conduct a suspicious transaction. They further explained that Midas added the token, wMATIC-stMATIC Curve LP, a few days ago, with a total supply of $250,000.
The Midas Capital and Jarvis Network team previously discussed introducing more collateral options and implementing supply caps to stop large borrows. Unfortunately, this did not stop the attacker, who used the famous flash loan technique for the exploit.
The hacker inflated the LP (liquidity pool)’s token price and then borrowed against it. According to reports, the DeFi platform lost about $660,000 of assets.
The Midas team have attempted to recover the stolen funds by reaching out to the attacker. They even offered a huge bounty should the hacker decide to return the stolen assets.
The team has not released any information on whether the hacker responded to their message. Meanwhile, the team is exploring alternative measures to address the damages, such as implementing internal procedures to prevent similar incidents in the future.
Also, they stated that setting limits on newly added collateral or implementing a cool-down period could reduce the platform’s vulnerability to the attack.
DeFi Exploits Continue In 2023
Meanwhile, the team announced they would exercise caution when adding new collateral and create a risk assessment protocol. Additionally, they intend to implement additional checks and balances to enhance security.
Even though DeFi exploits were numerous in 2022, the momentum has not reduced in 2023, given the number of exploits a few weeks into the year. A recent report by security platform, ImmuneFi stated that the DeFi and crypto sector lost over $3.9 billion to hackers last year.
The on-chain security data platform added that there were over 168 attacks in 2022. Unfortunately, attack victims only recovered about 5.2% ($204 million) of the total stolen amount.
Besides, several white hat hackers helped several platforms to recover lost funds last year. Some even warned DeFi platforms before attacks occurred.
According to reports, white-hat hackers saved crypto platforms nearly $20 billion last year. The US FBI even chimed in other numerous attacks advising DeFi platforms to run routine checks on their smart contracts.
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