Linear Finance Issues Warning About Exploit Attack
Linear Finance, a DeFi protocol, recently experienced a significant exploit attack that resulted in a loss of liquidity for its native stablecoin, LUSD. The protocol quickly issued an urgent update on X (formerly Twitter) to inform users about the attack and advise them not to buy or trade LUSD during this time. The team assured users that their accounts were not at risk and that liquidations had been paused while they conducted an investigation.
Details of the Attack
The hacker exploited a vulnerability in the protocol, allowing them to mine an unlimited supply of AAVE tokens. These tokens were then traded for LUSD on the Linear exchange and sold on PancakeSwap and Ascendex, completely draining the liquidity of LUSD. The team is actively working to track down the attackers and restore the protocol.
Protective Measures Taken
In response to the attack, the Linear Finance team paused all contracts related to token minting, burning, or exchanging. They also disabled the Linear bridge contract for LUSD. Additionally, they have enlisted the help of industry experts to assist with resolving the situation and apprehending the attackers.
Promising Resolution and Importance of Transparency
Linear Finance is committed to restoring the protocol and undoing the damage caused by the exploit. They apologize to their users for any inconvenience and ask for patience and support during this time. This incident serves as a reminder of the importance of transparency and proactive measures in maintaining security within the crypto ecosystem.
Linear Finance’s XRP Listing
Prior to the hack, Linear Finance had experienced significant growth with the listing of XRP. This listing was a major development for both parties involved. XRP has recently been relisted on major exchanges following a favorable court ruling, making it available on platforms such as Kraken, Bitstamp, and Coindesk.
Hot Take: Linear Finance Addresses Exploit Attack on LUSD
The recent exploit attack on Linear Finance’s native stablecoin, LUSD, has raised concerns within the crypto community. However, the protocol’s swift response and proactive measures to protect user accounts and investigate the attack should reassure users. This incident serves as a reminder of the importance of transparency and security in the decentralized finance space. Linear Finance is committed to resolving the situation and restoring the protocol while engaging industry experts to track down the attackers. It remains to be seen how this incident will impact the future of Linear Finance and its users.
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