2 years ago
Solana-based stablecoin protocol Cashio was exploited successful an “infinite glitch” attack, developers said connected Wednesday.
Following the exploit, the worth of Cashio's CASH token dropped to astir zero.
“Please bash not mint immoderate CASH. There is an infinite mint glitch. We are investigating the contented and we judge we person recovered the basal cause. Please retreat your funds from pools,” the squad wrote successful a tweet.
CASH is simply a stablecoin pegged to the U.S .dollar and is backed by USDC and USDT via a liquidity excavation connected Saber, a Solana-based marketplace maker. Users tin mint their CASH by providing liquidity with USDT and USDC.
The incidental connected Wednesday allowed the hacker to manipulate Cashio’s astute contracts to mint an infinite proviso of CASH without providing immoderate liquidity successful return. Blockchain data shows implicit 2 cardinal CASH were minted, without immoderate USDC oregon USDT backing.
The hacker utilized the recently minted tokens to speech them for stablecoins connected Cashio’s liquidity pools. Data from tracking instrumentality DeFi Llama shows the full worth locked connected Cashio dropped by $28 cardinal aft the attack.
Stablecoins based connected different protocols has suffered akin attacks successful the past. Polygon-based Safedollar dropped to $0 aft an exploit successful June 2021, with some USDC and USDT siphoned disconnected by the hacker astatine the time.
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Shaurya is an analyst/editor for CoinDesk's markets squad successful Asia.
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