The stacking DeFi protocol COVER has apparently been victim to an exploit, leading to a hacker minting at least $5 million of the DeFi’s tokens.
COVER’S “infinite mining bug” was the source of the exploit, supposedly allowing the hacker to mint false tokens then place them on Balancer to stake BPT tokens. They then were able to unstack actual COVER tokens.
The minting lasted for 2 hours followed by the hacker selling at least $5 million worth of COVER tokens on various crypto exchanges.
As a result of the dump, inflation of Cover tokens, particularly, on Binance occurred. This led to a 97% price drop.
Binance and Huobi have since suspended all trading and deposit activity of Cover.
There has been an exploit within the cover protocol.
All addresses have been blacklisted.
Huobi is the leading exchange because our process is strict for listing new tokens to protect you, our community, and your assets. pic.twitter.com/ci9AmrgHp3
— Huobi (@HuobiGlobal) December 28, 2020
Cover protocol as yet to respond to the exploit. Check back for the developing story.
Update: It seems the hacker has just returned at least some of the stolen tokens saying in the an encrypted message: “Next time, take care of your own shit.”
It has been revealed that the “hacker” was the owner of another DeFi, Grap Finance, who was responsible for exposing the exploit. Apparently, the exploit was a lesson in COVER’s vulnerability. See the tweet from Grap below.
1. No gains.
2. The Obtained Funds from LP has been returned to COVER.
— Grap.finance (@GrapFinance) December 28, 2020