The DeFi Indexed Finance protocol has just become the last victim of an attack that resulted in significant losses. In fact, this is the first time this project has been attacked since the protocol was implemented in December, which cost approximately $ 16 million.
Indexed Finance is a project that provides portfolio management functions. And two of the project’s indexes, DEFI5 and CC10, were the target of this nifty attack.
The attacker took advantage of the DEFI5 pool rebalancing mechanism by taking $ 156 million from the pool’s tokens such as UNI, AAVE, COMP, CRV, MKR and SNX. They manipulated the pool’s weight by adding a new SUSHI token to control most of the pool’s weight.
The contract contains malicious code that uses all the borrowed assets to buy UNIs from the pool in multiple pieces. The attacker updated the minimum balance on the controller and since removing the UNI it has been calculated in SUSHI.
The previously purchased UNIs will be used to mint the new DEFI5, resulting in a sharp increase in group supply due to large orders. At this point, the amount of SUSHI borrowed enables the attacker to earn more DEFI5 at an extremely high valuation. This process is repeated several times before performing the same attack on the CC10 pool prior to fast loan repayment.
The security firm PeckShield reported that the attacker stole 15 ETH, 226,900 UNI, 7,500 AAVE, 6,400 COMP, 845,800 CRV, 516 MKR, 45,400 SNX, 33,200 LINK, 5,200 YFI, 17,800 UMA and 131,600 BAT. The total value is approximately $ 16 million.
Indexed announced that it will discuss chargebacks and propose a maintenance plan with the community while patching the vulnerability is complete.
NDX price | Source: CoinMarketCap
Unsurprisingly, the project’s native token, NDX, fell 27% from $ 3.35 to $ 2.43. NDX has kept the price steady steadily from $ 2.5 to $ 4 over the past three months. And it’s now down 91% from its February 4th all-time high of $ 27.71.
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