Wednesday, October 5, 2022

Polygon’s Qi Dao Suffers Protocol Breach that Moved $13M

Qi Dao, polygon’s native stablecoin protocol, experienced an exploit on its Superfluid vesting contract resulting in a 65% crash in the market value of the governance token QI, this was reported in a tweet by the polygon giant. QI’s worth fell from $1.24 to $0.18.

Qi Dao in a tweet early this week ascertained the exploit on the contract although he reassured the safety and security of customers’ funds noting that  funds from Qi Dao were not affected. 

Superfluid also affirmed the exploitation on QiDAO and affirmed that they’re scrutinizing the exploit as of now and will subsequently give updates regarding it. The protocol permits customers to switch their investments on-chain in a regular progression In real-time from one bitcoin purse to another.

Hackers behind the exploit successfully made away with investments like $20 million worth of tokens, along with 24 WETH, 526,000 USDC, 44SDT, 1.5 million MOCA, 23,000 STACK, and roughly 40,000 sdam3CRV, leaving the customers’ account unaffected. Though investigations are yet to be concluded, evidence indicates that the stolen funds are owned by some of the pioneers of the project including team vested tokens.

Analysis from SlowMist – a blockchain security company that ran a check using the remnant of each stolen token confirmed that the hackers made away with cryptocurrencies worth about $13 million.

Those behind the theft resulted in ditching looted Qi Dao on QuickSwap decentralized exchange (DEX) with high slippage, ushering to a 65% decrease in the price of the token. Members in the polygon took advantage of the decrease and purchased the dip, which enabled the token to rise to $0.6 after it had dropped below $0.18. The hack was possible due to susceptibility in Superfluid’s platform, though Qi Dao wasn’t affected.

In response to the exploitation, Qi Dao temporarily discontinued its bridge and aimed to fix the situation rapidly. The exploitation happened within 24 hours of Polygons’ $450 million fundraise, though, the society expressed tremendous backing in the local stablecoin protocol and emphasized that it was because of the third-party exposure instead of an issue with stablecoin protocol.

Cyber attacks and hacks have become commonplace in the crypto space, many of which have been reported by cryptomarketsbeat. Recently, North Korean Digital Currency was the latest victim as hackers stole $400Million(£291M) in digital assets to support the country’s missile program from March 2020 to the Middle of 2021 as contained in a report given to the media by the United Nations (UN).

Joyce Onose
A Blockchain enthusiast and growing writer in the space with an understanding of the importance in creating quality content for readers in the industry. Also, keen on using her skills in improving Blockchain journalism.

Related Articles

1 COMMENT

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

0FansLike
0FollowersFollow
2,042FollowersFollow

Latest Articles

%d bloggers like this: