Another project of decentralized finance (DeFi) has been hacked. This time, the victim of hackers was Pickle Finance, as a result of which hackers withdrew $19.7 million in DAI tokens.
After that, the rate of Pickle Finance’s own token fell by 50.12% to $10.17, although it then recovered slightly. The developers of the project wrote in the social network Twitter:
“There have been reports that our DAI PickleJar pool has been hacked. We are actively investigating the issue and will provide the necessary information.”
Later, the developers reported that, working on the hack together with a team of computer security specialists, they discovered vulnerabilities and began to fix them.
Pickle Finance was launched in September, in the wake of DeFi projects with “product names” like Sushi Swap. This is a fully automatic system that rewards users with interest on the deposit and distributes PICKLE tokens.
The project has placed several pools of liquidity with stablecoins, which should maintain their value on a par with the linked asset. In the case of a deviation, for example, of the DAI rate from the US dollar, the project used automatic arbitrage trading to edit the token rate, and at the same time to make a profit for users.
“This was a very sophisticated attack that used many components of the Pickle protocol. At the moment, it does not seem that any other funds blocked in the protocol are in danger. However, we encourage all users to withdraw funds from the pools, ” the developers of Pickle Finance said in an article on the company’s blog.
Recall that earlier it was reported about the hacking of the Origin Protocol project, as a result of which hackers were able to withdraw various cryptocurrencies with a total value of more than $7 million.