Last Saturday, Hundred Finance, a decentralized finance protocol based on the Binance Smart Chain blockchain, fell victim to a cyber attack that caused it to lose $7 million. The analytical platform, Peckshield, revealed that the attacker donated 200 Wrapped Bitcoin (WBTC) to inflate the price of HWBTC exchange rate, which led to the devastation of the platform’s landing pools with even a tiny amount of 2 Wei.
The representatives of the Peckshield platform explained the incident on Twitter, saying, “The main reason is that the attacker donated 200 WBTC to inflate the HWBTC exchange rate, so even a tiny amount (2 Wei) can devastate current landing pools.”
After the attack, Hundred Finance posted confirmation of the incident via its social media accounts. The problem reportedly arose from the platform’s solution to scaling OptimLayer2.
Following the announcement of the attack, the Hundred Finance team proposed negotiation with the hacker or reaching out to the world. The team also announced negotiations with the teams of data protection specialists.
The Hundred Finance protocol is designed to create and launch cryptocurrency landing pools, which are investment tools that allow users to earn interest on their cryptocurrencies while providing them as a loan to other users. The protocol provides automatic distribution of interest rates and controls risks using risk management algorithms. It also supports tokenization of borrowed assets and allows users to earn these tokens in the internal decentralized exchange.
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