- Following the attack on Zabu Finance, DeFi platform Vee Finance was attacked.
- Avalanche's native token AVAX and Vee Finance's VEE plunged.
- VEE posted 40% losses in the past 24 hours.
Avalanche network has suffered another exploit, wiping out millions from its total value locked, which is considered equivalent to market capitalization for decentralized networks.
$35 million lost in attack on Vee Finance, marking the second exploit on the Avalanche network
A layer one proof-of-stake blockchain, Avalanche network noted a massive spike in total value locked over the past few weeks. The network's native asset AVAX rallied in response to the rising demand.
The layer-one blockchain network was victim to two recent exploits, draining Zabu Finance and Vee Finance of a total of $130 million. Zabu Finance was the first decentralized finance protocol to suffer an exploit on Avalanche. The September 12 attack amounted to $3.2 million, and the DeFi app has hashed out a plan to compensate pre-hack holders.
We've been exploited today. What happened?
— Zabu Finance (@zabufinance) September 12, 2021
Everything was from a Pool of $SPORE Token -> https://t.co/D12H7uB5pD
Spore has Transfer Tax so that the attacker used the same mechanism with attacks explained on https://t.co/vXkCKPKBIz and https://t.co/SZiss6IC3R)
Vee Finance, a lending protocol platform, lost 8804.7 ETH and 213.93 BTC, amounting to $35 million. The platform is yet to hash out details of the hack.
Vee Finance has addressed the hacker in a public tweet,
We're willing to launch a bounty program for the bug you identified. Please connect us via email or other contact you prefer.
Dear Mr/Ms 0x**95BA,
— vee.finance (@VeeFinance) September 21, 2021
This is VEE Finance team, we’re willing to launch a bounty program for the bug you identified. Please connect us via email or other contact you prefer.https://t.co/24R5XuSDDS pic.twitter.com/HwSNRi838g
On Saturday, Vee Finance's total value locked crossed $300 million before the attack. The price of the platform's native token VEE plunged over 40% within a single day.
The launch of Avalanches's $180 million incentive program attracting dApps to its network garnered the attention of several developers. Only $5 million in incentives have been unlocked, and the network is now faced with the challenge of securing dApps from future exploits.
The recent incidents have wiped $130 million from Avalanche network's TVL, and native token AVAX is trading 15% below its 7-day peak of $75. AVAX offered the highest risk-adjusted returns to traders last week, and analysts continue buying in anticipation of a second leg up.
Zhi Ko, the co-founder of Solstarter.org, shared in a recent tweet that he has bought Avalanche network's native asset.
Averaged a bit into some blue chip alt positions.
— Zhi Ko (@NekozTek) September 20, 2021
Nothing crazy just some spot buys on. No leverage longs yet.
- $AVAX
- $DOT
- $FTT
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Dogwifhat price pumps 5% ahead of possible Coinbase effect
Dogwifhat (WIF) price recorded an uptick on Thursday, going as far as to outperform its peers in the meme coins space. Second only to Bonk Inu (BONK), WIF token’s show of strength was not just influenced by Bitcoin (BTC) price reclaiming above $63,000.
Runes likely to have massive support after BRC-20 and Ordinals frenzy
PUPS, WZRD, and PEPE are gaining liquidity through Bitcoin Ordinals. Creator of Bitcoin’s Ordinals protocol is debuting a new fungible token standard to rival BRC-20, Runes.
Ethereum shows firm support at key level as its correlation with US indices increase
Ethereum's price continued a sideways movement on Thursday as the market still awaits a trigger. Ethereum isn't alone in this horizontal trend; several major index funds have also traded sideways.
Mango Market attacker convicted of fraud and market manipulation
Mango Market attacker Avi Eisenberg was convicted by a federal jury on Thursday for "fraudulently obtaining" funds from the Solana-based decentralized exchange (DEX). He could face up to 20 years in prison for his role in the $110 million attack.
Bitcoin: BTC’s rangebound movement leaves traders confused
Bitcoin (BTC) price has been hovering around the $70,000 psychological level for a few weeks, resulting in a rangebound movement. This development could lead to a massive liquidation on either side before a directional move is established.