Protocol in ‘Paused State’
Bad News:
- Rodeo Finance, a defi protocol, fell victim to a force-investment hack, resulting in a theft of approximately $1.7 million.
- The protocol has been placed in a paused state until a remediation plan is implemented with the help of security experts.
Good News:
- Rodeo Finance claims to have recovered $810,000 of the stolen funds.
- The protocol has identified how the attack was carried out, involving a flaw in one of their oracles.
Key Points:
- The attack occurred because of a twap oracle that was sandwiched just around its price update, causing an inflated price and allowing the hacker to borrow and swap tokens.
- The attacker cashed out their profits by arbitraging the pool back to normal price.
- Rodeo Finance has recovered $810,000 from the yield farm used in the attack.
- The protocol is working to track and freeze the remaining funds and is collaborating with security auditors on a recovery plan.
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Hot Take:
Rodeo Finance’s latest hack is a blow to the defi community, but the recovery of a portion of the stolen funds shows some resilience. The protocol’s proactive approach to identifying the attack’s method and working towards a recovery plan is commendable. However, it highlights the need for stronger security measures in the defi space. The incident serves as a reminder to investors to exercise caution and do thorough research before participating in yield farming projects.
