Optimism-based DeFi Protocol Loses $20 Million in Major Attack

Sonne Finance vows transparency and restoration efforts amid fallout

Sonne Finance, a pioneering decentralized finance (DeFi) protocol working on the Optimism Mainnet, has fallen victim to a devastating exploit, leading to a loss exceeding $20 million. The assault, suspected to have been orchestrated via a time-locked contract loophole, has despatched shockwaves via the burgeoning DeFi panorama.

In line with insights from PeckShield, a blockchain safety agency, Sonne Finance was focused in what seems to be a rigorously orchestrated assault, leveraging vulnerabilities within the protocol’s sensible contract infrastructure. The exploit, which concerned a recognized donation assault method generally related to Compound v2 forks, unfolded regardless of the platform’s proactive measures to bolster safety.

Optimism markets suspended

Sonne Finance, notable as the primary platform to launch a lending protocol on Optimism, promptly responded to the breach with an official weblog put up. Within the statement, the crew expressed deep remorse over the incident and detailed the sequence of occasions resulting in the exploit. The attackers capitalized on a two-day timelock function, strategically executing transactions to govern market creation and collateral elements throughout the protocol.

Regardless of efforts to detect and mitigate the hack swiftly, the Sonne Finance crew acknowledged the lack of funds and initiated an pressing investigation into the perpetrators’ identities. Notably, the crew highlighted the vigilant efforts of Seal contributors, whose immediate motion helped salvage roughly $6.5 million by injecting VELO tokens into affected markets.

The exploit, detected by the Sonne Finance crew roughly 25 minutes after it occurred, triggered the speedy suspension of all Optimism markets operated by the protocol. Furthermore, the crew pledged to supply a bounty to the exploiters and chorus from pursuing authorized motion if the misappropriated funds had been returned.

In a bid to comprise additional harm and safeguard user assets, Sonne Finance promptly paused all market actions and engaged in dialogue with related stakeholders to discover avenues for fund restoration. The crew reiterated its dedication to transparency and accountability, vowing to collaborate with exterior events to handle the aftermath of the assault comprehensively.

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