A suspected hacker has abused the Cover Staking protocol, to blow up the token supply by printing over 40 trillion “coins”
However, in a surprising move, the suspected attacker returned the money with a note saying, “Next time, bring your own.”
In the first exploit, the attacker liquidated more than 11,700 coins on the 1inch decentralized exchange aggregator after blowing up the token offering according to data from the Ethereum wallet explorer Nansen. In total, the rogue actor has pulled over $ 5 million from the project as of press time.
Cover Protocol that was released covered the incident in a message posted to his Discord group, stating:
“The Blacksmith agricultural contract has been exploited to store infinite $ COVER tokens. We have restricted coin access to the agricultural contract to stop the attacker. If you provide liquidity for $ COVER token (uniswap or sushi swap), remove it immediately. “
According to the Cover Protocol team, the issue only related to the token stock of funds in “claim / noclaim” pools that were still secure. The project says it is investigating the incident.
The attack caused a massive drop in the COVER token price, which dropped by more than 97%, while also eliciting negative comments from a cross-section of the crypto community on social media. In November Cover was one of the DeFi protocols to merge with Yearn.Finance.
Monday’s incident makes Cover the latest DeFi project to undergo a malicious exploit in a year of opportunistic usury attacks against a host of protocols.
As previously reported by Cointelegraph, the wave of DeFi hacks stands out all year round as one of the biggest disappointments in the crypto space for 2020 with data manipulation that is considered easy to achieve in many projects.