Decentralized finance platform Zunami Protocol hacked, losing over $2.1 million
- Zunami Protocol’s liquidity pool on Curve was hacked, resulting in a loss of over $2.1 million.
- The protocol confirmed the hack and advised users not to purchase Zunami Ether (zETH) or Zunami USD (UZD) stablecoins.
- Blockchain security firms PeckShield and Ironblocks analyzed the hack and attributed it to price manipulation.
- The price of Zunami USD and zETH plummeted following the exploit, with the stablecoin losing 99% of its value.
- The stolen funds were put through the coin mixer Tornado Cash.
Zunami Protocol’s hack and the cause
Zunami Protocol recently suffered a hack, resulting in a loss of over $2.1 million. The protocol confirmed the attack and advised users against purchasing certain stablecoins. Security firms PeckShield and Ironblocks analyzed the hack and determined that it was due to price manipulation. As a result, the price of Zunami USD and zETH dropped significantly, with the stablecoin losing its entire value. The stolen funds were also passed through the controversial coin mixer Tornado Cash.
Curve Finance’s recent troubles
Zunami Protocol’s hack is the latest in a series of attacks on Curve Finance. Attackers stole millions of dollars worth of crypto by exploiting vulnerabilities in Curve’s liquidity pools. The vulnerabilities were traced back to a third-party programming language called Vyper. Curve founder Michael Egorov’s $168 million lending position was also at risk of liquidation due to the exploit. Other protocols utilizing Curve’s pools were also impacted by the attacks.
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