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Team Finance exploited for $14.5M during protocol migration despite contract audit

diffrint by diffrint
October 27, 2022
in Blockchain
0
Team Finance exploited for $14.5M during protocol migration despite contract audit

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On Oct. 27, decentralized finance (DeFi) lockup protocol Workforce Finance said that over $14.5 million value of tokens have been exploited by the Uniswap v2 to v3 migration perform on its platform. As told by blockchain safety agency PeckShield, the hacker transferred liquidity from Uniswap v2 property on Workforce Finance to an attacker-controlled v3 pair with skewed pricing. By locking tokens to the contract, the attacker bypassed current validation mechanisms and pocketed the large leftovers as a refund for revenue. 

Uniswap v3 was designed with higher effectivity for liquidity suppliers (LP) than v2 on its decentralized change. Nevertheless, v2 sensible contracts are nonetheless operational, and customers should work together with a migration sensible contract emigrate their LP property from v2 to v3. PeckShield estimated that the preliminary assault vector required for this interplay value simply 1.76 Ether (ETH).

Drained property embrace USD Coin (USDC), CAW, TSUKA and KNDA tokens, because the liquidity swimming pools have been “moved” to Uniswap v3. On the decentralized change, a few of the affected tokens, comparable to CAW, suffered steep value declines because of the exploit and subsequent liquidity crunch. 

Workforce Finance stated that the sensible contract had been beforehand audited and urged the hacker to “get involved with us for a bounty cost.” Because of this, builders have quickly paused all exercise on the protocol and declare that each one funds on the platform are usually not vulnerable to an extra exploit. Based in 2020, Workforce Finance and its mum or dad agency, TrustSwap, present token liquidity locking and vesting providers for venture executives. The protocol claims to have $3 billion secured throughout 12 blockchains.