fbpx
4.6 C
London
Friday, January 27, 2023

Raydium Releases Details About $2 Million Hack And Proposes Compensation

The Solana DeFi protocol Raydium said early on Friday that a hacker had gained control of the company’s “owner authority” and utilized that privilege to start emptying Raydium’s liquidity pools. Without the need for middlemen, users may trade, borrow, and lend crypto assets to one another using DeFi technologies. By enabling users to contribute assets to a pool, frequently in return for token incentives, automated market makers like Raydium do this. 

Solana has now had a big hack of one of its largest DeFi protocols, further causing the network to struggle to recover from the crippling harm caused by the shocking fall of one of its most important supporters, disgraced FTX founder Sam Bankman-Fried.

Raydium Hacked For Over $2 Million 

- Advertisement -

According to research from blockchain analytics company Nansen, a hacker stole almost $2.2 million worth of digital assets from such a pool on Raydium in just a few hours, including $1.6 million worth of SOL. One of Solana’s most important decentralized financial protocols, it is regarded as the foundation of the Solana DeFi ecosystem. Many in the Raydium community suggested abandoning the protocol entirely because it was open to such a top-down form of attack.

According to a team forum post, the hacker was able to escape with more than $2 million in cryptocurrency loot by taking advantage of a flaw in the DEX’s smart contracts that allowed administrators to withdraw entire liquidity pools despite existing safeguards being intended to prevent such behavior.

To recompense victims who lost Raydium tokens, commonly known as RAY, the team will utilize its unlocked tokens. However, the developer lacks the stablecoin and other non-RAY tokens necessary to compensate victims, therefore it is requesting a vote from RAY holders to utilize the DAO treasury to purchase the necessary tokens and recompense people harmed by the exploit.

- Advertisement -

Follow Us

16,985FansLike
4,865FollowersFollow
1,643FollowersFollow

Latest news