The two DeFi platforms were subject to a well-known exploit, allowing hackers to snatch large amounts of crypto.
Following the attack, both protocols have suffered a price drop in their native tokens. While Hundred Finance’s token HND did not suffer any major drop-offs, Agave’s AGVE token went down by approximately 5.5% over the past 24 hours.
The exploit was initially reported by Agave itself, and the platform had paused any operations involving crypto transactions.
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Agave is currently investigating an exploit on the agave finance protocol. We will update you as soon as we know more.
— Agave (@Agave_lending) March 15, 2022
Based on several sources, the hackers took off with somewhere around $11 million in crypto that includes wrapped Bitcoin (wBTC), USD Coin (USDC), Gnosis (GNO), XDAI(wxDAI), and Chainlink (LINK).
However, shortly after notifying the exploit on social media, another DeFi protocol Hundred Finance informed users on Twitter that it has suffered from an attack on the Gnosis chain as well.
Unfortunately Hundred and Agave have both been exploited on Gnosis chain today. Gnosis team is aware, investigation is ongoing.
All the Hundred markets on all chains paused for now.
These are the two transactions:
— Hundred Finance (@HundredFinance) March 15, 2022
According to the Senior Engineer of the Original Protocol Daniel Von Fange, the exploit was a result of a reentrancy hack that allowed the hacker to abuse the code by sending out false transfers with XDAI tokens.
Agave (AAVE clone) and Hundred Finance (Compound Clone) attacked on Gnosis chain. The XDAI token allowed the attacker to run code after a transfer (callAfterTransfer), and this was used attack reentrancy in each protocol. pic.twitter.com/5A01RXsKWY
— Daniel Von Fange (@danielvf) March 15, 2022
To rub more salt into the wound, DanceFloor DeFi developer Shegen explained the hack in a lot more detail, but, most importantly, stated that the stolen crypto assets were practically unretrievable. With that being said, there have been talks of reimbursement by the teams behind the protocols.
First.. Are funds safu?
No. they are pretty much gone forever, but there is still hope!
The founder of Gnosis replied to me earlier that he would support a measure from the DAO. Others are saying they would support it toohttps://t.co/UFcloWU5TG
— Shegen (@shegenerates) March 15, 2022
The exploit came right after yesterday’s announcement that yet another DeFi protocol Deus Finance was subject to a hack, losing $3 million in the process.