Hundred Finance Warns Compound V2 Users After Hack

Key Points:

• On the Optimist layer-2 scaling solution, Hundred Finance faced a severe security compromise.
• The protocol revealed that they had been hacked, with damages believed to be more than $7 million.
• Hundred Finance also requested anyone affected by the hack who lives in the United States, notably New York, to contact the team.

The veHND model is used by the finance (DeFi) multi-chain lending protocol. Hundred Finance said that it had been compromised on the Ethereum layer-2 blockchain Optimistic.

The protocol, which combines with Chainlink oracles to maintain market health and stability, reported on Saturday, April 15, through their official Twitter account that they had been hacked, with estimated damages at $7 million.

The protocol team said that it was compiling a post-mortem on how the incident occurred and encouraging people not to speculate until it issued an official statement.

Furthermore, Hundred Finance said that it is attempting to negotiate a stolen funds agreement with the hacker with the aim of retrieving part or all of the stolen monies. In a subsequent Twitter, the protocol said it was also discussing the situation with several security teams.

On Sunday, the protocol requested anyone affected by the hack who lives in the United States, notably New York, to contact Hundred Finance through Twitter or the chat app Discord. In addition, users of Compound V2 also need to pay attention because this is a common vulnerability.

CertiK, a blockchain security company, detailed the assault on Twitter, revealing how the hacker was able to walk away with $7.4 million in digital assets by manipulating the exchange rate between Ethereum ERC-20 and hTOKENS.

On Hundred Finance’s website, hTOKENS are used as interest-bearing, tokenized representations of user deposits that might vary in value based on the activity of other borrowers.

However, Hundred Finance has not been hacked for the first time. Hundred Finance and Agave were used in a reentry assault on Gnosis Chain in 2022. As a consequence, Hundred lost $6.5 million at the time, while the two platforms lost $11 million.

Many criminals have utilized flash loan attacks to target DeFi since the previous year.

Attacks on Euler Finance, with $196 million in damage, and Mango Markets, with $46 million in damage, are recent examples. Although Eulerwhile’s hacker refunded the majority of the cash, Mango’s thief was apprehended by US police.

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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Harold

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