DEX Merlin audited by CertiK experienced a $1.82 million hack. The attacker mined funds from a DEX liquidity pool powered by zkSync.
The decentralized exchange Merlin was hacked on April 26 and lost $1.82 million. PeckShield and several community members pointed out that the exchange was being exploited and provided the exploiter’s addresses. The funds in the form of USDC tokens were connected to Ethereum by zkSync.
Another DeFi exploit
Community members have asked Circle to freeze the funds, although it seems too early for Circle to take action given the hack happened just hours ago. Merlin’s team has not commented on the incident, at least on Twitter. However, the crypto community has been vocal about the incident.
Merlin DEX Attack Funds Moved: PeckShield
The attacker depleted the Merlin DEX liquidity pool. Based on zkSync, the project is one of the most notable applications on the web. The fact that the attacker drained the liquidity pools is an indication that they somehow tampered with the liquidity pool smart contracts.
The incident is another in the DeFi market, which remains a prime target for hackers. Despite audits, DeFi platforms remain vulnerable to security breaches, having already sold hundreds of millions this year.
What is Merline?
Merlin was only released a few days ago. It has gained a lot of attention because it is built on top of zkSync and has even managed to build several partnerships. The main offerings of the platform are the core farming pools, which have attracted many millions in just a few days.
The DEX is based on zkSync, a Layer 2 Zk Rollup-based scaling solution for Ethereum. It is currently conducting its public sale for the MAGE token. It’s unclear what impact the hack will have on pre-sales. However, investors will be wary of the platform at this point.
DeFi audits are being questioned
The crypto community will be doubly cautious, as just days before launch, the platform was audited by well-known security firm CertiK. However, it is worth noting that audits have become a major necessity in the cryptocurrency market. Additionally, the fact that an audit of a company like CertiK has caught the attention of the crypto community suggests that the community appreciates the importance of security and risk mitigation in the industry.
In fact, CertiK has audited several projects in the past that later came under attack. The list includes PancakeBunny, Uranium Finance, and Meerkat Finance. The end result is that the crypto community has increasing doubts about the quality of the audits.
CertiK also audited Land, which drew criticism for a founder’s praise-heaped statement about Terra’s design. The combination of the attacks that followed the audits and the statements about Terra are making the crypto community increasingly suspicious.
Therefore, DeFi audits are being questioned despite their necessity. Projects need to focus on the quality of these audits and their own watertight designs to convince the public.
Disclaimer
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