The Complex Hack on Sonne Finance: A Detailed Analysis
Recently, a crypto attacker executed a sophisticated hack on Sonne Finance, resulting in a heist that netted them approximately $20 million. The attacker exploited a vulnerability in Sonne Finance’s VELO integration with the Optimism network, showcasing a high level of skill and planning. Here is a breakdown of how the attack unfolded and the impact it had on Sonne Finance:
The Attack Unfolds
The attack, lasting for two days, commenced with an exploit transaction that took advantage of Sonne Finance’s VELO integration with the Optimism blockchain. This integration had a two-day time lock feature for added security, which the attacker circumvented to carry out the heist.
- The attacker introduced a “c-factor” into the markets, manipulating transactions to their advantage.
- By minting only 2 wei of VELO tokens using a minuscule amount of 400,000,001 wei VELO, the attacker set the stage for further exploitation.
Exploiting the System
After minting a new token called soVELO, the attacker borrowed a substantial amount of VELO from the AMM liquidity pool, creating an imbalance in the system. This imbalance allowed the attacker to borrow Wrapped Ethereum using minimal collateral, leading to a significant windfall for the attacker.
- The attacker borrowed 265 wei of Wrapped Ethereum with just 2 wei of soVeLO as collateral.
- Rounding errors in the system’s calculations enabled the attacker to acquire a large quantity of VELO, surpassing the suggested limit.
The Drainage Operation
Continuing their scheme, the attacker drained assets from multiple sources within Sonne Finance, including various tokens and cryptocurrencies. The attack resulted in the theft of a significant amount of digital assets, highlighting the importance of thorough code audits and robust security measures in decentralized environments.
- The stolen assets included VELO, Wrapped Ethereum, USDC, WBTC, wstETH, Tether, and other tokens.
- The success of the hack underscored the need for stringent security protocols and continuous monitoring in the crypto space.
Conclusion
The hack on Sonne Finance serves as a stark reminder of the ever-present risks in the crypto industry. As malicious actors continue to refine their tactics, it is imperative for projects and platforms to prioritize security measures and proactive risk management strategies to safeguard users’ funds and assets.
Hot Take: Learning from the Sonne Finance Hack
As a crypto enthusiast, staying informed about evolving security threats and vulnerabilities is crucial in navigating the ever-changing landscape of digital assets. By understanding the intricacies of recent attacks like the one on Sonne Finance, you can better protect your investments and contribute to a more secure and resilient crypto ecosystem.
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