DeFi
Optimism-Based DeFi Protocol Loses $20M in Major Attack
Mushumir’s ass
Sonne Finance promises transparency and recovery efforts in the face of fallout
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Sonne Finance, a pioneering decentralized finance (DeFi) protocol running on the Optimism mainnet, has fallen victim to a devastating feat, resulting in a loss of over $20 million. The attack, believed to have been orchestrated by a time-limited contractual breach, sent shockwaves through the booming DeFi landscape.
According to information from PeckShield, a blockchain security company, Sonne Finance was the target of what appears to be a carefully orchestrated attack, exploiting vulnerabilities in the protocol’s smart contract infrastructure. The exploit, which involved a known donation attack technique commonly associated with Compound v2 forks, occurred despite the platform’s proactive measures to strengthen security.
Optimistic markets suspended
Sonne Finance, known as the first platform to launch a lending protocol on Optimism, quickly responded to the breach with an official blog post. In the statement, the team expressed its deep regret over the incident and detailed the sequence of events leading to the exploit. The attackers exploited a two-day lock feature, strategically executing trades to manipulate market creation and collateralization factors within the protocol.
Despite efforts to detect and mitigate To hack The Sonne Finance team quickly recognized the loss of funds and opened an urgent investigation into the identity of the perpetrators. The team particularly highlighted the vigilant efforts of Seal contributors, whose quick action saved approximately $6.5 million by injecting VELO tokens into affected markets.
The exploit, detected by the Sonne Finance team approximately 25 minutes after its occurrence, triggered the immediate suspension of all Optimism markets operated by the protocol. Additionally, the team pledged to offer a bounty to the exploiters and to refrain from legal action if the misappropriated funds were returned.
In order to contain further damage and protect user assets, Sonne Finance promptly suspended all market activities and engaged in dialogue with relevant stakeholders to explore avenues for recovering funds. The team reiterated its commitment to transparency and accountability, pledging to work with external parties to comprehensively address the consequences of the attack.
About the Author
Mushumir’s ass
With over three years of immersive experience in the crypto industry, Mushumir is a seasoned crypto writer dedicated to unraveling the complexities of blockchain technology and decentralized finance. From analyzing the latest innovations in blockchain to demystifying trading strategies, he brings a unique blend of technical knowledge and infectious flair to the crypto space. Having written countless articles, analyzes and market reports, Mushumir has developed a distinctive voice that resonates with seasoned investors and newcomers to crypto alike.