Onyx Protocol Suffers $2.1 Million Hack through Precision Loss Vulnerability and Flash Loan
Recently, Onyx Protocol, a decentralized finance (defi) platform, fell victim to a security breach that resulted in a loss of $2.1 million. This attack exploited a bug known as “precision loss” and utilized a flash loan to drain a significant amount of ETH and ERC20 tokens from the platform. Despite the breach, the value of onyxcoin (XCN), the native currency of Onyx Protocol, only experienced a slight decline of 0.8%. This is in contrast to previous defi hacks that had a more substantial impact on crypto assets.
Decrease in Total Value Locked (TVL)
The total value locked (TVL) in Onyx Protocol has seen a sharp drop from $2.88 million to $557,253 following the breach. However, it is worth noting that some of the stolen funds were converted to ethereum (ETH) and transferred to the ether mixing service Tornado Cash.
Hot Take: Onyx Protocol Faces Significant Losses in Recent Hack
In a major blow to Onyx Protocol, the decentralized finance platform has suffered a security breach resulting in the loss of $2.1 million. The attackers exploited a vulnerability called “precision loss” and executed a flash loan to drain valuable assets from the platform. Despite this setback, onyxcoin (XCN) has experienced only a minor decrease in value. Nevertheless, the incident has led to a significant decrease in the total value locked (TVL) for Onyx Protocol. It remains to be seen how this breach will impact the platform’s future and its ability to regain user trust.
Benito Cormi, the brilliant crypto analyst who has made waves in the world of cryptocurrency. With his razor-sharp analytical skills and deep understanding of the digital asset landscape, Benito has become a trusted figure in the industry and remains at the forefront, tirelessly researching and analyzing market trends to help individuals and businesses make informed decisions in this dynamic landscape.