Credit: Original article published by Crypto Briefing Blog.

Less than two weeks after re-deploying on mainnet, bZx has been exploited for $8.1 million of LINK, ETH, and stablecoins. The incident caused the BZRX token to fall over 30%, as the value of the token secures protocol deficits.

How Many Times Is Too Many?

Earlier this year, the team behind bZx paused the protocol after two consecutive hacks caused a mass outflow of capital. Promising to come back stronger, bZx built a new iteration of the product over six months. The protocol was finally deployed again on Sept. 2.

It’s been less than two weeks, and bZx has been attacked once again.

This time, however, the loss is exceptionally higher than before. Given prevailing prices at the time of the hacks, bZx had been previously exploited for $330,000 and $640,000, respectively.

The latest hack saw $8.1 million of customer funds lost.

bZx’s iToken’s were deployed with a bug that allowed users to increase their balances artificially. The platform’s sustained losses were as follows:

  • 219,199.66 LINK ($2.61 million)
  • 4,502.70 ETH ($1.65 million)
  • 1,756,351.27 USDT
  • 1,412,048.48 USDC
  • 667,988.62 DAI

The insurance fund will bear the liability for these losses. Since the BZRX token derives a portion of its value from the insurance fund, its price tanked 31% yesterday.

BZRX is down 74% since peaking on Aug. 31.

Source: TradingView

Even after writing new code, employing fresh audits, and coming back to mainnet, bZx cannot seem to catch a break – and neither can their investors.

In a blog post dissecting the incident, bZx attributed the multiple hacks to the protocol being “the most powerful, fully functioned lending protocol in the space, and this means that there is a lot of code to cover.”

Smart contracts are challenging, but suffering three exploits in seven months is absurd.

The fate of bZx is now solely in the hands of the DeFi community. Whether users will return to the protocol remains to be seen.

This article is strictly for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. CryptosOnline.com does not provide investment, tax, legal, business or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any loss or damage caused or alleged to be caused by, or in connection with, the use of or reliance on any content, goods, services or opinions mentioned in this article.

Categories:

Tags:

Comments are closed

Translate

Visit Our Other Websites

EdgyBranding.com - Premium Domain Names.

Dexize.com - Ultra-Priviate DEX.

ClassicAutomobile.org - Classic Automobile News.