– The DeFi protocol on Optimism, called Hundred Finance, was hacked with $7 million in stolen funds.
– Sentiment against the protocol decreased, but activity on Optimism remained high.
Hundred Finance, a DeFi protocol for lending and borrowing on Optimism [OP] network, was attacked by a hacker on April 15. The hack led to the exploitation of $7 million in assets.
Realistic or not, here is OP’s market cap in terms of BTC
Millions take from Hundred
According to data from Peck Shield Inc., a blockchain security company, the hacker’s strategy was to donate a large amount of Wrapped Bitcoin [WBTC] to manipulate the price of another cryptocurrency called Hundred Finance Wrapped Bitcoin [hWBTC].
By driving up the exchange rate of hWBTC, the hacker was able to take advantage of a vulnerability on the platform and drain his loan pools by withdrawing a small amount of hWBTC. This resulted in significant losses for Hundred Finance and its users.
Hundred Finance uses Twitter to update its users on the recent attack on their platform. In their last tweet dated April 16, they reported that they are trying to enter into a dialogue with the hacker to come to an agreement.
We advise not to speculate on how the attack was carried out, the team is preparing a post mortem.
The main focus is on establishing communication with the hacker, reaching an agreement.
At the same time, we collect all available information to have it at hand for possible next steps.
— Hundred Finances (@HundredFinance) April 16, 2023
These attacks had a serious impact on the state of the Hundred Finance protocol. According to data from Dapp Radar, the volume and total transactions on the network have declined.
Caught in the crossfire
The dApp hack can affect people’s opinion of the network it operates on.
Data from Santiment showed that positive sentiment towards the Optimism protocol has waned in recent days. This indicates that the crypto community’s overall view of Optimism has become more skeptical.
However, the negative sentiment around Optimism did not affect the health of the protocol. According to Token Terminal data, daily activity on the protocol has continued to increase over the past few days. In addition, the fees collected by the protocol have also increased by 29% in the past week.
OP seems to be fine
OP has experienced a sharp price increase of 21.78% since April 12. The Relative Strength Index (RSI) for OP currently stands at 64.32, suggesting it is in slightly overbought territory.
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In addition, the Chaikin Money Flow (CMF) indicator for the token rose from -0.03 to 0.06 in recent days. This indicator shows that the demand for OP has increased recently, resulting in increased buying pressure.
These factors point to a positive trend for OP, with increasing buying pressure leading to an increase in price.
This post Optimism: DeFi protocol succumbs to hack, how was OP affected
was published first on https://ambcrypto.com/optimism-defi-protocol-succumbs-to-hack-how-was-op-impacted/