DeFi Platform Grim Finance Hacked, Lost $30 Million in Crypto

Another decentralized finance (DeFi) platform has fallen victim to a cyberattack, this time its Grim Finance. On Sunday, the Yield compounding tool had $30 million worth of fantom tokens siphoned off, the platform officially confirmed.

“The attackers' address has been identified with over 30 million dollars worth of theft here,” Grim Finance developers tweeted on Sunday morning. “The exploit was found in the vault contract so all of the vaults and deposited funds are currently at risk.”

Hello Grim Community,

It is with heavy hearts that we inform you that our platform was exploited today by an external attacker roughly 6 hours ago. The attackers address has been identified with over 30 million dollars worth of theft here https://t.co/qA3iBTSepb

— Grim Finance (@financegrim) December 19, 2021

Grim Finance was built on the top of the Fantom Opera network and allows users to stake their liquidity Liquidity The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent The term liquidity refers to the process, speed, and ease of which a given asset or security can be converted into cash. Notably, liquidity surmises a retention in market price, with the most liquid assets representing cash.The most liquid asset of all is cash itself.· In economics, liquidity is defined by how efficiently and quickly an asset can be converted into usable cash without materially affecting its market price. · Nothing is more liquid than cash, while other assets represent Read this Term pools, thus harvesting yields and re-staking rewards. These strategies have become popular as they provide even higher yields.

The DeFi protocol attracted deposits of more than $100 million that are stored as the total value locked (TVL), according to the analytics Analytics Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision-making. In the trading space, analytics are applied in a predictive manner in an attempt to forecast the price more accurately. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analy Analytics may be defined as the detection, analysis, and relay of consequential patterns in data. Analytics also seeks to explain or accurately reflect the relationship between data and effective decision-making. In the trading space, analytics are applied in a predictive manner in an attempt to forecast the price more accurately. This predictive model of analytics generally involves the analysis of historical price patterns that are used in an attempt to determine certain price outcomes. Analy Read this Term tool, DeFiLlama.

An Advanced Attack

The developers detailed that the attack was an advanced one as the attacker exploited Grim’s vault strategy by entering a malicious token contract. It used five reentrancy loops to fake five deposits while the platform was still processing the first deposit.

As a measure of safety, the developers have paused all of the vaults to prevent any future funds from being placed at risk and have urged users to ‘IMMEDIATELY’ withdraw all funds.

“The exploit was found in the vault contract, so all of the vaults and deposited funds are currently at risk,” the developers detailed.

Moreover, they have contacted and notified USD Coin issuer Circle, AnySwap and Maker to block the hackers' addresses and freeze the funds.

DeFi evolved from blockchain as the true challenger of the existing banking industry but remains vulnerable to cyber-attacks. Most recently Vulcan Forged, which is a crypto gaming ecosystem, lost $140 million and has already refunded most of the victims. Another platform Cream Finance suffered three attacks within the last few months, losing more than $192 million worth of cryptocurrencies.