- DeFi protocol Gamma Strategies lost about $3.4 million as a result of a hack.
- The team suspended deposits to avoid further losses.
- Representatives of the protocol contacted the hacker with a request to return the funds.
Gamma Strategies Decentralized Finance (DeFi) Protocol Exploited. To ensure safety, the team suspended user deposits but allowed withdrawals.
According to cybersecurity specialists PeckShieldAlert, the attacker managed to take possession of 1,500 ETH (about $3.4 million at the time of writing). Representatives of Gamma Strategies sent a message to the hacker asking him to return the funds.
Ivan PavlovskyyThe founder of the BlockSec agency, Yajin Zhou, pointed out a critical vulnerability in the protocol accounting mechanism, which could lead to the incident:
The main issue is with the settings we placed on (2) the price change threshold.
It was placed too high allowing for up 50-200% price change on certain LST and stablecoin vaults. This allowed the attacker to manipulate the price up to the price change threshold and mint a…
— Gamma (@GammaStrategies) January 4, 2024
Gamma Strategies said that the hack was caused by changes in the price threshold settings. According to the post, it was too high and allowed the cost to change by 50-200% in some pools. This allowed attackers to manipulate the price and obtain a disproportionately large number of tokens.
Let us recall that in November 2023, the trading company Kronos Research lost about $26 million as a result of hacking.. Another KyberSwap exchange reported a hack of more than $40 million. Against the backdrop of the exploit, the platform’s management announced staff reductions.