DeFi Ecosystem Hack: Litecoin Founder Points to Loopholes After Smart Contracts Fund Theft

Consequently, the company stalled its lending and trading protocol Fulcrum. Coincidentally, bZx was making a presentation at ETHDenver when the exploitation happened. The cyberpunks leveraged on the bZx’s pricing oracle as it only uses a single one, to spoof the protocol into surrendering the said funds.

The attack which brought to light the vulnerability of the DeFi Ecosystem is even more significant because of its timing as the bZx team had to manage the attack during the Ethereum community’s ETHDenver hackathon, a DeFi centered event.

DeFi alludes to an expanding network of decentralized financial apps. These render a broad spectrum of services like those seen in traditional markets. They are likewise created on public Blockchain networks.

Ethereum likewise has not been left out of the exploitation hacks since its inception. In 2016, $50 million in funds were swiped during the DAO incidence.

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