The latest cryptocurrency hack has targeted Polygon’s native stablecoin protocol Qi DAO, as the Suplerfluid fortress contract faced an exploit earlier today. The hackers got away with a reported $13 million worth of various tokens, causing the price of the governance token Qi to drop by 68% in no time.
QiDAO previously announced the hack on Twitter, assuring users that their funds were safe as the protocol itself had not been compromised.
Superfluid’s unconditional contract for QI has been abused.
User funds on QiDao contracts remain secure. The exploit is exclusively on Superfluid.
We will release an update when we know more.
— Qi Dao (@QiDaoProtocol) February 8, 2022
This was followed by an acknowledgment from Superfluid, who noted on Twitter that QiDAO’s unconditional contract had been compromised. It also warned users not to use Superfluid smart contracts for the time being. The protocol acts as an on-chain bridge for users to transfer funds between wallets in real time.
We are investigating a possible protocol layer exploit. As a precaution, you should extract all your SuperTokens. The attackers may be targeting large-value wallets/contracts.
Learn more about extracting tokens from our dashboard here: https://t.co/yJR3tiEGwo
— Superfluid (@Superfluid_HQ) February 8, 2022
Blockchain analytics company SlowMist followed the hacker’s address and found that it had made a profit of more than $13 million, including QI, WETH, USDC, SDT, MOCA, STACK, sdam3CRV, and MATIC. The attacker’s address had a balance of 11,016.60 MATIC, 507,930.87 MOCA, 2,707.91 ETH and 43,910.39 DAI according to the latest update from SlowMist.
Source: SlowMist/Twitter
While user funds and vaults have remained safe, it appears they are lost belong for novice investors along with tokens acquired by the team. For now, Qi-bridging is temporarily interrupted by the protocol while it investigates the bug.
Nevertheless, the price of QiDAO’s governance token fell 68.5% after the hackers started dumping the stolen QI Quickswap DEX with high slippage. The price dropped from $1.24 to $0.18 at the time. A price recovery was already noticeable, according to enthusiastic investors bought the dip† The token is still down 33.8% in the last 24 hours and is trading at $0.69 at the time of writing.
#slippage $QI #QiDAO price dropped -68.05% #Polygon https://t.co/CozWr2kwOZ pic.twitter.com/3Fef1PTG4A
— PeckShieldAlert (@PeckShieldAlert) February 8, 2022
The hack came on the heels of Polygon which completed a successful $450 million investment round yesterday. The round, led by Sequoia Capital India, marks the first step for the industry’s top venture capital firm.
This post Polygon’s Stablecoin Protocol QiDAO Suffers $13 Million Exploit on Third-Party Contract
was published first on https://ambcrypto.com/polygons-stablecoin-protocol-qidao-suffers-13-million-exploit-on-third-party-contract/
