On Monday, the Polygon-based decentralized exchange (dex) Quickswap lost $220K in a flash loan exploit and following the attack, the team detailed the Quickswap Lend platform will be terminated.
Hacked QuickSwap, DeX Project Sunsets Lending Platform for $220K
2022 has been quite the year for decentralized finance (DeFi) hacks as billions have been stolen due to mistakes, flash loans, faulty smart contracts and unneeded lines of code. On October 24, Quickswap Explained That Market XYZ Lending Market was settled for $220,000.
“Quickswap Lend is closing,” the team’s Twitter account noted on Monday. “$220K was exploited in a flash loans attack due to a vulnerability with the Curve Oracle, which [Market XYZ] was using. Only the Market XYZ lending market was compromised. Quickswap’s contracts are unaffected.”
QuickSwap also said that Qi Dao provided seed funds for Markets XYZ Lending Market, stressing that “no user funds were compromised.” DexMarkets is encouraging users with funds deposited in XYZ’s open markets to withdraw immediately as the QuickSwap Lend will sunset.
The recent Quickswap attack follows the Mango Markets hack and the recent Olympus DAO exploit. Olympus, like a number of recent defi projects, got the funds back after the exploit took place after bargaining with the hacker. Last week, Bitcoin.com News reported on the Chainalysis study that shows crypto hackers have made off with over $3 billion this year from 125 exploits.
In relation to the Quickswap exploit, blockchain audit and security firm Peckshield Explained That vulnerability was discovered on October 11, 2022. “This is a price manipulation issue,” Peckshield tweeted, “Mimetic uses CurvePoolOracle for market price feeds, which are manipulated to borrow funds from the market,” said blockchain security analysts at PeckShield.
Qi Dao, the provider of the Market XYZ lending market’s seed funds, are the creators of the Mimatic (MAI) stablecoin. Blockchain security and Web3 auditor, Chainsecurity, disclosed the exploit in the blog post shared by Peckshield after the hack. Mimatic (MAI) did slide to a low of $0.9895 on October 23, according to coingecko.com statistics, but the MAI stablecoin is currently exchanging hands for $0.993 per unit at the time of writing.
