DeFi Protocol Pickle Finance Token Loses Almost Half Its Value After $19.7M Hack

DeFi Protocol Catch 22 situation Finance Token Loses Almost Half Its Mark After $19.7M Hack

Standard decentralized finance protocol Catch 22 situation Finance become once hacked on Saturday, draining $19.7 million in DAI, a decentralized stablecoin pegged to the U.S. buck, from a Catch 22 situation pockets.

  • “There are reports that our DAI PickleJar strategy has been exploited. We’re actively taking a see into this matter and would maybe well also honest calm present additional updates,” the Catch 22 situation Finance crew announced on their professional Twitter memoir.
  • The mark of Catch 22 situation’s native token (PICKLE) fell 50.12% to $10.17 on the info, in accordance to Messari data. It has since rebounded to spherical $12.60.  

Catch 22 situation came on the scene Sept. 11 as idea to be one of many meals-themed DeFi projects. The fully automatic machine rewards customers with curiosity funds and token disbursements in PICKLE, ether and stablecoin pairings for offering liquidity to several stablecoin swimming pools. 

  • The mission tried to bring mark balance to the four top stablecoins, DAI, USDC, USDT and sUSD, which will most definitely be usually knocked off their buck peg. 
  • Catch 22 situation’s pJars, a connected to’s vaults, chanced on and accomplished arbitrage opportunities between stablecoin deposits on several protocols, nominally to push these stablecoins in direction of their peg, but additionally to reward Catch 22 situation customers.

On Friday, the crew launched the cDAI jar, a “contemporary strategy” aimed at maximizing returns from DAI deposited on the decentralized lending protocol Compound. The Catch 22 situation crew, and a community of “white hat hackers” beget traced the 19,759,355 DAI weekend exploit to this orderly contract, in accordance to a weblog post.

  • “This become once a in actual fact advanced attack and eager many ingredients of the Catch 22 situation protocol. As of real now, it doesn’t seem that any different funds are at likelihood,” they acknowledged. “Whereas we work on the repair to comprehend the attack vector, the white hat community has made up our minds that we would maybe well also honest calm not publish any info of the true attack but.”
  • A repair become once estimated by Sunday at 15: 00 UTC.

“We’re encouraging all LPs to withdraw their funds from the Jars till the factors were resolved,” the Catch 22 situation crew tweeted.

Leave a comment