Imagine experiencing a breach of security that results in the loss of $12 million worth of cryptocurrency. That’s exactly what happened to DeFi lender Exactly Protocol. The protocol fell victim to a bridge exploit, where a hacker used an exploiter contract on Ethereum to transfer deposits to Optimism before ultimately stealing funds back to Ethereum. This incident highlights the ongoing concern of cross-chain bridge exploits in the crypto industry, which saw over $2 billion lost to similar hacks last year. The protocol is actively investigating the security issue and has temporarily paused its operations to ensure user safety. This unfortunate event coincides with a broader downturn in the cryptocurrency market, adding to the challenges faced by the industry.
DeFi Lender Exactly Protocol Exploited For $12 Million
Overview of the Exploit
Today, we bring you news of a major exploit in the decentralized crypto lender Exactly Protocol, which resulted in the loss of $12 million worth of ETH. Security firm De.Fi reported that the hacker used an exploiter contract on Ethereum to transfer deposits to Optimism before bridging the stolen funds back to Ethereum.
Loss of $12 Million Worth of ETH
The hacker’s exploiter contract on Ethereum allowed them to steal as much as $12 million worth of ETH from the Exactly Protocol. This substantial loss has raised concerns about the security of DeFi platforms and the need for stricter measures to protect user funds.
Nosdive in Total Value Locked (TVL)
Following the bridge exploit, the total value locked (TVL) on the Exactly Protocol took a nosedive. According to data from DeFi Llama, the TVL plummeted from $36 million to under $26 million. This significant drop in value underscores the impact of the exploit on the protocol and its users.
Fall in the Native Governance Token (EXA)
As a result of the bridge exploit, the native governance token of the Exactly Protocol, EXA, experienced a sharp decline in value. The token fell by more than 15% and is currently trading at $4.91. This decrease in value reflects the negative sentiment surrounding the protocol and the loss of user funds.
Cross-Chain Bridges as a Popular Target for Hackers
Cross-chain bridges have emerged as a popular target for hackers due to their relatively new technology and potential vulnerabilities. According to Chainalysis, over $2 billion was lost to bridge-related hacks last year alone. This highlights the need for increased security measures and audits for projects utilizing cross-chain bridges.
Protocol’s Response and Investigation
The Exactly Protocol has acknowledged the hack and launched an active investigation into the security issue. In a tweet, they stated that they are temporarily pausing the protocol to ensure user safety. The protocol’s team is actively working on resolving the issue and will provide more details as soon as possible. This swift response demonstrates the protocol’s commitment to protecting user funds and addressing security vulnerabilities.
Coordination with Overall Downturn in Crypto Market
The exploit on the Exactly Protocol occurred during an ongoing downturn in the broader cryptocurrency market. Many altcoins, including XRP, LTC, and BCH, experienced double-digit declines in value. The leading cryptocurrency, Bitcoin, also slumped to as low as $25,200 before making a slight recovery. This overall market downturn further adds to the challenges faced by the Exactly Protocol and its users.
Double-Digit Declines in Altcoins
In addition to the exploit on the Exactly Protocol, many altcoins experienced significant declines in value. XRP, LTC, and BCH all suffered double-digit decreases as a result of the market downturn. These declines highlight the volatility and risk associated with investing in altcoins, especially during turbulent market conditions.
Bitcoin Slump and Market Bloodbath
The market downturn also affected the leading cryptocurrency, Bitcoin. Bitcoin slumped to as low as $25,200 before recovering slightly. This decrease in value led to the liquidation of nearly $1 billion worth of positions within a span of 24 hours. The market bloodbath further emphasizes the need for caution and risk management in the cryptocurrency market.
The Ongoing Concern of Cross Bridge Exploits
The exploit on the Exactly Protocol is just one example of the increasing frequency of cross bridge exploits in the crypto industry. Previous hacks, such as the one on the Hundred Finance Protocol, have also highlighted the vulnerability of cross-chain bridges. These incidents emphasize the urgent need for stricter security measures and audits to protect user funds and prevent further exploits.
In conclusion, the exploit on the Exactly Protocol resulting in a loss of $12 million worth of ETH highlights the importance of security in the DeFi space. Cross-chain bridges remain a popular target for hackers, and the ongoing market downturn further complicates the situation. The protocol’s swift response and investigation are commendable, but they serve as a reminder of the need for increased diligence and caution in the cryptocurrency market.