The Zunami Protocol, a decentralized finance protocol, has confirmed that its stablecoin pools have been attacked. According to blockchain security firm PeckShield, the protocol suffered an estimated loss of over $2.1 million from a price manipulation attack on its “zStables” stablecoin pools. The attack was detected on August 13th and confirmed by Zunami shortly after. While the collateral in the pools remains secure, the issue is currently under investigation. It is believed that a flash loan price manipulation attack has taken place, impacting Zunami UZD and Zunami ETH pools. As more information becomes available, this developing story will be updated.
Zunami Protocol confirms stablecoin pools attacked, $2.1M loss estimated
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Introduction
Zunami Protocol, a decentralized finance protocol, has recently confirmed that its “zStables” stablecoin pools have been targeted in an attack. The protocol suffered an estimated loss of $2.1 million due to a price manipulation issue. The attack was detected by blockchain security firm PeckShield, and it is currently under investigation by Zunami.
Attack on zStables stablecoin pools
The attack on Zunami’s stablecoin pools, known as zStables, has raised concerns within the decentralized finance (DeFi) community. The specific details of the attack are still being investigated, but it is believed to be a flash loan price manipulation attack. This type of attack involves using a flash loan, a temporary loan that is instantly borrowed and repaid within one transaction, to manipulate the price of an asset in order to exploit vulnerabilities in a smart contract.
Estimation of $2.1M loss
Blockchain security firm PeckShield has estimated that Zunami Protocol suffered a loss of over $2.1 million as a result of the attack on its zStables stablecoin pools. The loss was attributed to the price manipulation issue, which allowed the attacker to incorrectly calculate the price and exploit the vulnerability. Another blockchain security firm, Ironblocks, arrived at a similar figure, further confirming the severity of the attack.
Exploit detected by PeckShield
PeckShield, a renowned blockchain security firm, was the first to detect the exploit on Zunami Protocol’s stablecoin pools. On August 13, at 10:47 UTC, PeckShield identified the price manipulation attack on Curve, a popular decentralized exchange. The exploit was later confirmed by Zunami Protocol, around 20 minutes after being detected by PeckShield. The swift response by both PeckShield and Zunami Protocol demonstrates the importance of proactive security measures in the DeFi space.
Confirmation from Zunami Protocol
Zunami Protocol has officially acknowledged the attack on its zStables stablecoin pools. In a statement, the protocol assured users that their collateral in the pools remains secure despite the attack. Zunami Protocol also emphasized that it is actively investigating the issue to gather more information and prevent further attacks. The protocol’s transparent communication and commitment to securing user funds are commendable in the face of this security breach.
Investigation into the issue
Following the attack, Zunami Protocol has initiated a thorough investigation to determine the extent of the damage and identify the perpetrator(s) behind the attack. The protocol aims to understand the vulnerabilities in its system that allowed the attack to occur and implement necessary security enhancements to prevent similar incidents in the future. The investigation will involve analyzing transaction data, reviewing smart contracts, and collaborating with blockchain security experts.
Flash loan price manipulation attack
The attack on Zunami Protocol’s stablecoin pools is believed to be a flash loan price manipulation attack. This type of attack exploits the unique capabilities of flash loans to manipulate the price of an asset, allowing the attacker to take advantage of vulnerabilities in the smart contract code. Flash loans are temporary loans that are instantly borrowed and repaid within a single transaction, making them an attractive tool for sophisticated attackers.
Impact on Zunami UZD and Zunami ETH pools
Zunami Protocol’s stablecoin pools, specifically the Zunami UZD and Zunami ETH pools, have been directly impacted by the attack. The attackers exploited the price manipulation vulnerability in these pools, leading to the estimated loss of $2.1 million. Zunami Protocol is working diligently to assess the extent of the damage and mitigate any further risks to its users. It is crucial for affected users to stay informed about the ongoing investigation and take necessary precautions to safeguard their funds.
Zunami’s role as a decentralized revenue aggregator protocol
Zunami Protocol is a decentralized revenue aggregator protocol that offers users the ability to stake stablecoins for yield. By pooling funds together, Zunami Protocol enables users to earn passive income on their stablecoin holdings. It leverages the power of decentralized finance to optimize returns and provide users with attractive yield opportunities. The recent attack on Zunami’s stablecoin pools highlights the inherent risks in the DeFi space and the importance of robust security measures.
Ongoing updates
As this is a developing story, further updates will be provided as more information becomes available. Zunami Protocol is actively working to resolve the issue and protect its users’ funds. Users are advised to stay updated through official announcements from Zunami Protocol and exercise caution when interacting with the protocol during this time. The incident serves as a reminder of the need for continuous improvement and vigilance in the fast-paced world of decentralized finance.
