The layer-2 scaling solution Optimism for Ethereum experienced a hack that cost the multichain lending protocol Hundred Finance over $7.4 million.
Hundred Finance hacked
The DeFi platform declared on April 15 that it had contacted the hacker and was working with numerous security teams. The protocol also asked anyone with information to contact them. This is not the first time Hundred Finance has been put in jeopardy.
In 2022, Hundred Finance and Agave were employed as tools in a reentry assault on the Gnosis chain. At the time, the two sites lost $11 million.
Hundred, a fork of the well-known Compound protocol, has been implemented on various blockchains.
According to Peckshield, the hacker contributed 200 WBTC, a stablecoin tied to bitcoin, to the protocol’s offshoot, hWBTC.. The loan pools were thus drained with a little sum of hWBTC, resulting in losses.
According to CertiK, the attacker altered the exchange rate between ERC-20 tokens and htokens. The hacker increased the exchange rate by donating many WBTC to the htoken contract.
Later, the attacker used that rate to borrow large sums of money at the new exchange rate and then repaid their initial investment. Due to the hack, Hundred lost $7.4 million.
Meanwhile, Numen Cyber claimed to have lost 1,030 Ethereum (ETH) worth more than $2 million.
The Hundred Finance team warned its members earlier today to stop making assumptions about how the assault occurred. According to the protocol, the main purpose is to contact the attacker and reach an agreement.
DeFi Hacks in 2023
This incident adds to the growing list of hacking-related damages in 2023, and it serves as a reminder of the perils of decentralized finance (DeFi). Following the Euler Finance assault in March, there have been several hacks in the last few weeks.
Vulnerabilities in DeFi protocols like Allbridge, Sentiment, and Yearn Finance were exploited in the first two weeks of April. According to DeFiLlama’s analysis, these intrusions cost more than $20 million.