11:53
+22 C°
Traffic jam:   4
$
71.8318
87.2110

DeFi project Pickle Finance lost $20 million in a hacker attack

22 November 2020
1800
2 min.
5
DeFi project Pickle Finance lost $20 million in a hacker attack

Phishing attack by hackers

At the end of Saturday, one of Pickle Finance's liquidity pools lost $20.16 million. Unknown hackers placed stolen funds at the address of their purse.

DeFi project developers don't know what kind of code vulnerability hackers used, smart contract successfully passed security audit by MixBytes and Haechi.

Pickle Finance is one of the most popular and useful platforms on the market of decentralized finance, especially mentioned by Vitalik Buterin.

Each Pickle Jap liquidity pool is an automated strategy aimed at maximizing from harvest by investing farmers' funds according to a given algorithm. Another advantage of the investment strategy of the platform is the averaging of gas costs across all liquidity pools, which significantly reduces the cost of a single farmer.

The main specialization of Pickle Finance is arbitration of stablcoins produced by various DeFi protocols. Smart contract automatically increases the investment in the type of token, which is in the maximum deviation from the dollar rate.

A farmer can also exchange and transfer different types of stablcoin from one Jap pool to another with a single click, gaining arbitrage profits. This was the reason for the attack, according to white hackers.

The attacker created a phishing pool of Pickle Jap, synchronizing the exchange code with the pool of pJar, focused on the Compound platform, and then exchanged fake tokens for DAI. Stabilcoins obtained by phishing operation were converted to ETH and outputted to the hacker's own wallet.

Managing director of Pickle Finance Peter Wyszenko said: "Stolen funds were kept motionless for 8 hours. It is not excluded that the attacker conducted a demonstrative attack". Pickle Finance urges the farmers to take all the funds from Jap pools during the trial until the vulnerability is addressed.

Persons2 and Companies3 in the news

Chief technical officer and co-founder of Ethereum
1 place
Director of Pickle Finance Group
2 place
Compound
1 place
Pickle Finance
3 place
Section:

Discussion

Rating companies
Tesla
68 Mention
Apple
67 Mention
Nasdaq
64 Mention
Amazon
56 Mention
Dow Jones
51 Mention
Facebook
50 Mention
Microsoft
35 Mention

NEW YORK NEWS

News from GlobalNY.biz is the freshest and most relevant information about high-profile events in the region. The task of the resource's news feed is to convey to readers with maximum accuracy and objectivity information about important events in business, politics, economy, healthcare, culture and other spheres of life in New York.
GlobalNY.biz news is a coverage of economic processes taking place in New York, the latest news of public life, incidents and an overview of political events. New York news is information about the activities of small and medium-sized businesses, the work of housing and communal services and utilities, the implementation of significant projects.
The site's journalists describe not only the life of the region, but also talk about the current state of the US economy. Everything you need to know about innovations in the field of industry and agriculture, economy and power is collected in the "News" section at GlobalNY.biz.
New York news quickly informs the reader, shows the real picture and opens up hot topics. Communication with government structures and business enables us to provide our readers with reliable, information-rich material. The main page of the portal contains the key news of New York!
Alena Potapova

Development Director