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Indexed Protocol Hacked | Losses Worth $16 Million

Key Takeaways:

  • Indexed Protocol Hacked and lost over $16 Million,
  • According to Peckinsheild, the damage was made possible due to the manipulation of pool value.
  • The protocol is soon going to propose a plan for governance as to how they should compensate the people who lost their funds.
Indexed Protocol Hacked
Indexed Protocol Hacked

About ten hours ago, the Indexed Protocol was hacked for the first time since its launch back in December. The protocol lost ~ $16 Million in what’s supposed to be two transactions targetting DEFI5 and CC10 respectively. Further, it seems that the hackers had everything planned before executing things, as the weight for SUSHI on CC10 is way over the total it’s supposed to have.

Hackers stole over $16 M of which approximately $8.5 Million was UNI tokens transferred from Uniswap. Moreover, other assets such as AAVE, COMP, CURVE, and YFI accounted for another $8 Million.

The protocol immediately released a statement saying that “We’re aware of an incident that has just taken place within the DEFI5 and CC10 pools.”

Further, you can find more details about the transaction here.

According to Peckinsheild, the damage could be made possible because the way to measure the pool value can be manipulated. Moreover, it is believed that the hacker exploited this part with the controlled majority weight of the entire pool to further add new tokens such as Sushi.

Indexed Protocol Hacked using Sushi
Indexed Protocol Hacked using Sushi

As we can see in the above image the hacker used SUSHI tokens to move ahead with the plan. Further, according to Peckinsheild, the hacker might have followed the above plan to execute it using the steps below:

Indexed Protocol Hackers Plan
Indexed Protocol Hackers Plan

Further, according to the recently released Post Mortem by Indexed Finance, the protocol is determinant to prevent any more such hacks in the future. Moreover, the platform is right now laying out a plan to handle such attacks and compensate the people who lost their funds. Further, they’re trying to propose a strategy for governance soon, as to how they should execute the strategy for compensation.

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Prabhat Tiwari
I am someone who loves swimming in the ocean of DeFi and believes the disruptive technology, i.e., Bitcoin will change a lot of things and not just our financial system.

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