Safemoon Liquidity Pool Hacked, Loses $8.9 Million
The Safemoon Liquidity Pool has fallen victim to a hacker who managed to steal $8.9 million. According to reports, the unknown hacker used the recently-added Burn smart contract by the SFM cryptocurrency price, and this enabled users to sell it at a much more profitable rate.
Decentralized Finance (DeFi) liquidity pools use decentralized systems, such as smart contracts, to provide financial services without the intervention of traditional financial institutions, such as banks or exchanges. As DeFi has grown in popularity, hackers have started targeting these pools in an attempt to obtain tokens or other cryptocurrencies.
The hack of the Safemoon Liquidity Pool, which is a DeFi protocol, is not the first incident of its kind. In June, a similar incident occurred when a hacker exploited a vulnerability in the Compound Finance protocol, making off with nearly $100,000 worth of Dai cryptocurrency.
While DeFi offers several benefits, such as no need for intermediaries and more significant transparency, these systems are not impervious to attacks. To safeguard against potential security breaches, DeFi liquidity pools need to invest more in securing smart contracts and conducting regular security audits.
The investigation into the Safemoon Liquidity Pool hack is still ongoing.
Sources: https://twitter.com/safemoon, https://www.coindesk.com/comound-hack-exploit-defi-protocol