Decentralized Perpetual Market Grade Finance Hacked for $1.1M
Other attacks have hit the DeFi market, with the decentralized market based on BNB Chain and non-custodial perpetual Level Finance being the latest victims. On May 2, the team stated on Twitter that the exploit had targeted its smart contracts to drain funds.
Attackers specifically targeted Referral Controller Contracts, spending 214,000 LVL tokens. The tokens are then exchanged for BNB tokens. Other smart contracts are unaffected as they are not affected by this attack.
The researchers also offered some solace in reporting that the DAO’s liquidity pool and treasury were left untouched. At 12 hours, it also installs patches fairly quickly. The team also claims they will provide a post-mortem of the attack later, which will provide some insight into what happened. DeFi attacks continue to plague the industry, and in certain cases, audits are not enough to prevent them.
The financial rate is a permanent, decentralized, non-custodial market. The platform, which is built on top of the BNB Chain, now has a TVL of $32.5 million. It had a TVL of around $41 million prior to the attack.
Level Finance claims among other things to offer programmable liquidity pools, efficient capital hedging and risk management. The network’s utility token, the LVL token, incentivizes adoption across the ecosystem.
The number of hackers in 2023 is increasing, with additional attacks occurring in recent weeks. It’s still not quite as bad as it was in 2022, but things could change with one big hack. In February, for example, hackers stole $20 million, which pales in comparison to 2022.
Euler Finance and Sentiment are two of the most high-profile hacks of the year. The first had taken $197 million, while the second had stolen $1 million. Surprisingly, in both cases, the team negotiated with the hackers to return most of the funds.