ElasticSwap Attacked, Loss Approximately $854,000

The ElasticSwap project on AVAX has just been discovered to be exploited. It was a price manipulation attack and the root cause was the abuse of two accounting systems. Damage was estimated at $854,000.

According to security risk watchdog, early warning and blocking agency Beosin EagleEye of blockchain security auditing firm Beosin, ElasticSwap was attacked due to inconsistent calculation methods for adding liquidity and removing liquidity in contracts.

The usual constant K value algorithm is used in the liquidity add function, but in the liquidity removal function, the balance of the two tokens in the current pool is taken directly for calculation.

The attacker first adds liquidity and transfers a certain amount of $USDC.e into the TIC-USDC pool, at which point the amount of USDC.e to be transferred to the attacker is multiplied by the number of LP tokens, then the attacker removes liquidity to make a profit.

This strategy made a profit of 22454 AVAX (approximately $290,328). At the same time, the AMPL-USDC pool under the name ElasticSwap on the Ethereum chain was also attacked using the same method, the attacker made a profit of about 445 ETH (equivalent to 564,000 USD).

The project also confirmed the attack a few hours ago and is still investigating to come to a conclusion.

The attack also caused the project’s TIC token to drop more than 70% of its value and is currently at $1.36.

ElasticSwap (TIC) is a cryptocurrency and operates on the Avalanche C-Chain platform, the project is a new multi-chain AMM focused on supporting tokens with a flexible supply like $AMPL.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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