DeFi Hack: Vee Finance Losses $35 Million To Hackers Following Mainnet Launch

0 4

One of the major threats to businesses online, not only the crypto industry, is cybercriminals’ attacks. Even though the existing networks are supposed to be safe and secure, attackers often find loopholes to exploit them in the bid to steal investors’ funds. This is not new in the online world. There have been occasions when hackers even forced companies to shut down.

The decentralized finance sector has seen a lot of growth in recent times, but the growing exploitation cases are becoming alarming. Many protocols have suffered such attacks amounting to losses to the tune of millions of dollars. The latest to record such an exploit is Vee Finance based on the Avalanche Blockchain.

Hackers stole $35 million from this protocol a few days after its mainnet went live on the host network. Before reporting this incident, Vee Finance stopped all its transactions on September 20, 2021. The team suspected questionable activities in the network and had to stop rendering services to users.

Vee Finance Lost Money In BTC And ETH

The two cryptos that hackers stole are BTC and ETH. The total number of BTC was 214, while ETH was 8,804. Checking the value of both at press time, the amount was above $35M. According to what the team revealed, the hackers targeted a particular address through the trade contract address of the protocol.

Related Reading | Will Fear And Greed Keep Bitcoin Buyers From The Halloween Effect?

As soon as the Vee Finance team discovered this exploit, they stopped rendering the contract and also stopped all borrowing and depositing functions on the platform.

However, the team hasn’t said much about the reason and how the hackers got access to the address. All we could gather is that they’re fixing the issue and attempting to facilitate a possible funds recovery from the criminals.

In its statement, Vee Finance assured users that its goal is to protect their interests, and that’s what the team will focus on achieving.

Vee Finance To Alleviate Mining Operations

The recently exploited protocol is amongst the emerging DeFi projects that aim to improve the mining features of the sector.

Vee Finance wants to boost processes such as leverage mining, liquidity mining, and transaction mining. September 14 was the day it went live on the Avalanche network. It also launched its liquidity mining feature the same day.

Like many other DeFi protocols, Vee Finance also relies on Chainlink price feeds to get real-time value for digital assets on-chain. This is part of the benefits of using blockchain oracle solutions. Five days following the launch, the protocol garnered a total of $300 million in TVL (Total Valued Locked).

Unfortunately, a few days later, the protocol lost $35 million to hackers. In recent times though, many other protocols on the Avalanche blockchain have recorded such losses.

Related Reading | Mid-Cap Altcoins Hold Onto Highs Better Than Bitcoin And Ethereum

Some of them include Zabu Finance, which lost $3.2 million to hackers, crashing its value to zero. But the Avalanche Blockchain has been growing recently, and even the native token, AVAX, is also rising in value.

Vee Finance

Vee Finance

The AVAX Token is rising by 10% as per the chart | Source: AVAXUSD on TradingView
Featured image from PYMNTS, charts from TradingView.com
Leave A Reply

Your email address will not be published.

bitcoin
Bitcoin (BTC) $ 62,000.00
ethereum
Ethereum (ETH) $ 3,859.29
binance-coin
Binance Coin (BNB) $ 478.06
cardano
Cardano (ADA) $ 2.21
tether
Tether (USDT) $ 1.00
xrp
XRP (XRP) $ 1.14
solana
Solana (SOL) $ 158.56
polkadot
Polkadot (DOT) $ 43.39
usd-coin
USD Coin (USDC) $ 1.00
dogecoin
Dogecoin (DOGE) $ 0.238101
terra-luna
Terra (LUNA) $ 37.44
uniswap
Uniswap (UNI) $ 26.19
wrapped-bitcoin
Wrapped Bitcoin (WBTC) $ 61,900.00
binance-usd
Binance USD (BUSD) $ 1.00
litecoin
Litecoin (LTC) $ 188.55
shiba-inu
Shiba Inu (SHIB) $ 0.000025
avalanche-2
Avalanche (AVAX) $ 56.82
chainlink
Chainlink (LINK) $ 27.11
bitcoin-cash
Bitcoin Cash (BCH) $ 627.15
algorand
Algorand (ALGO) $ 1.79
matic-network
Polygon (MATIC) $ 1.54
cosmos
Cosmos (ATOM) $ 33.36
stellar
Stellar (XLM) $ 0.381039
vechain
VeChain (VET) $ 0.119806
internet-computer
Internet Computer (ICP) $ 44.71
axie-infinity
Axie Infinity (AXS) $ 126.41
filecoin
Filecoin (FIL) $ 67.50
tron
TRON (TRX) $ 0.100079
ethereum-classic
Ethereum Classic (ETC) $ 54.13
dai
Dai (DAI) $ 1.00
ftx-token
FTX Token (FTT) $ 56.84
theta-token
Theta Network (THETA) $ 6.22
compound-ether
cETH (CETH) $ 77.47
tezos
Tezos (XTZ) $ 6.96
hedera-hashgraph
Hedera (HBAR) $ 0.377854
staked-ether
Lido Staked Ether (STETH) $ 3,834.45
fantom
Fantom (FTM) $ 1.99
crypto-com-chain
Crypto.com Coin (CRO) $ 0.193560
monero
Monero (XMR) $ 269.72
elrond-erd-2
Elrond (EGLD) $ 242.88
pancakeswap-token
PancakeSwap (CAKE) $ 19.87
eos
EOS (EOS) $ 4.61
okb
OKB (OKB) $ 16.65
near
Near (NEAR) $ 8.15
the-graph
The Graph (GRT) $ 0.848322
cdai
cDAI (CDAI) $ 0.021748
klay-token
Klaytn (KLAY) $ 1.66
aave
Aave (AAVE) $ 302.83
ecash
eCash (XEC) $ 0.000211
quant-network
Quant (QNT) $ 292.81
compound-usd-coin
cUSDC (CUSDC) $ 0.022344
bitcoin-cash-abc-2
Bitcoin Cash ABC (BCHA) $ 192.10
iota
IOTA (MIOTA) $ 1.30
bitcoin-sv
Bitcoin SV (BSV) $ 172.25
kusama
Kusama (KSM) $ 356.84
neo
NEO (NEO) $ 44.87
waves
Waves (WAVES) $ 30.22
olympus
Olympus (OHM) $ 1,053.66
terrausd
TerraUSD (UST) $ 1.00
leo-token
LEO Token (LEO) $ 2.88
arweave
Arweave (AR) $ 53.70
huobi-btc
Huobi BTC (HBTC) $ 62,165.00
amp-token
Amp (AMP) $ 0.052917
bittorrent-2
BitTorrent (BTT) $ 0.003679
celsius-degree-token
Celsius Network (CEL) $ 5.71
harmony
Harmony (ONE) $ 0.225963
maker
Maker (MKR) $ 2,583.46
thorchain
THORChain (RUNE) $ 8.17
sushi
Sushi (SUSHI) $ 11.08
helium
Helium (HNT) $ 21.60
blockstack
Stacks (STX) $ 1.99
dash
Dash (DASH) $ 193.94
omisego
OMG Network (OMG) $ 14.17
compound-governance-token
Compound (COMP) $ 319.92
celo
Celo (CELO) $ 5.92
chiliz
Chiliz (CHZ) $ 0.326348
havven
Synthetix Network Token (SNX) $ 9.88
ecomi
ECOMI (OMI) $ 0.007678
magic-internet-money
Magic Internet Money (MIM) $ 1.00
holotoken
Holo (HOT) $ 0.009301
decred
Decred (DCR) $ 121.30
theta-fuel
Theta Fuel (TFUEL) $ 0.288837
nem
NEM (XEM) $ 0.174826
enjincoin
Enjin Coin (ENJ) $ 1.64
zcash
Zcash (ZEC) $ 125.96
icon
ICON (ICX) $ 2.04
xdce-crowd-sale
XDC Network (XDC) $ 0.111357
qtum
Qtum (QTUM) $ 12.75
dydx
dYdX (DYDX) $ 22.96
true-usd
TrueUSD (TUSD) $ 1.00
yearn-finance
yearn.finance (YFI) $ 35,688.00
telcoin
Telcoin (TEL) $ 0.021929
zilliqa
Zilliqa (ZIL) $ 0.098783
bitcoin-gold
Bitcoin Gold (BTG) $ 70.89
huobi-token
Huobi Token (HT) $ 7.55
iostoken
IOST (IOST) $ 0.052681
curve-dao-token
Curve DAO Token (CRV) $ 3.00
flow
Flow (FLOW) $ 17.21
mina-protocol
Mina Protocol (MINA) $ 4.23
spell-token
Spell Token (SPELL) $ 0.016977