A recent report about the BonqDao exploit revealed that all the damages caused by the problems were limited because of the liquidity problems in the market. The this problem favoured an attacker as it mint a lot of tokens. This ultimately resulted in a number of circulation of tokens.
The BonqDao exploit happened on 13th February, 2021. It happened when an offender exploited a glitch in the smart contract of BongDao. This attacker minted a large amount of token which resulted in a number of tokens in the circulation. This caused a huge drop in the token value on the BonqDao platform.
The BonqDao team was quick to respond to the glitch, and it managed to reverse the effects of the exploit. The team of the firm also released a new update to their smart contracts aiming to prevent the exploits from being used in the future.
BonqDAO Release Statement
The BonqDao team revealed that the damage done by the glitch was limited due tobecause of the lack of liquidity. When the glitch was used, there were only some tokens in the circulation. This evidently meant that the attacker could not take advantage of the extra tokens in the circulation and gains from the reduction in prices of the tokens.
The purpose of this report is to serve as a reminder that, despite a tiny market, it is still crucial to make sure that the code is safe and that the team is ready to act fast in the event of any security problems. It serves as a reminder of how crucial it is for a market to have adequate liquidity since it can reduce the harm that an exploit can do.
Overall, the Bonq Dao team responded quickly to the glitch and reverse its effects. However, the lacking of liquidity in the market sent clear indication that the damages were limited.