Stader Labs will cover any losses incurred in its NEAR liquidity pools. The multi-chain liquid mining protocol also released a statement on the incident.
NearX smart contract exploit
A hacker recently exploited Stader Labs’ NEAR liquid staking pool, exploiting vulnerabilities in its NearX smart contract to steal over $800,000 worth of funds.
During the incident, which occurred on August 16, the attacker “gregoshes.near” stole up to $165,000 NEAR (current trading at around $5.10 per token). However, users who staked $NEAR on Stader’s Decentralized Application (dApp) were not affected. Instead, according to Stader’s Aug. 17 statement, this impacted $NEAR liquidity in the NearX/Near liquidity pool.
“The ~$2.5MNear staked on the Stader dApp is perfectly safe with the validators and the attack had no impact on it. Losses are mostly related to $near liquidity in the LPs,” Stader wrote.
The attacker exploited a bug related to NearX minting and minted 20 million $NearX tokens. Also, the hacker transferred the minted tokens to his wallet without a $NEAR token being staked against it.
The attacker later drained all $NEAR liquidity from NearX/Near liquidity pools in Stader’s supported Decentralized Exchanges (DEX), Ref Finance and Jumbo Exchange. This was done by exchanging the minted $NearX tokens for $NEAR. The team’s quick action to contain the exploit by pausing all $NearX transactions ensured that user funds were not affected.
The attacker’s account with the transferred NEAR tokens
Stader assumes all losses incurred in the Near/NearX pool. Protocol is also taking positive steps to ensure a similar incident does not recur. One of them is starting a bug bounty program in partnership with Immunefi to catch more bugs in NearX smart contracts.
Read the Stader publication to learn more about the incident and plans to prevent further vulnerabilities.
What is Stader Labs:
Stader Labs was founded in April 2021 by Amitej Gajjala, Sidhartha Doddipalli and Dheeraj Borra. It specializes in managing cryptocurrency stakes. Stader plans to use decentralized finance protocols and applications to efficiently manage stakes on public blockchain networks. Currently, the company’s staking product is available on Hedera, Polygon, Fantom, Terra 2.0, BNB, and Near blockchains. Stader plans to expand its support to Solana, Ethereum, and Cosmos soon.
Stader Labs raised $12.5 million in a strategic private sale this January, raising its valuation to $450 million. Stader Labs is backed by Pantera Capital, Coinbase Ventures, Jump Capital, Accomplice, Accel, Huobi Ventures, Hypersphere and True Ventures, among others.
Where to find Stader Labs:
Website | Twitter | Medium | Telegram | discord
Don’t forget to download the BSC News mobile application for iOS and Android to stay up to date with the latest BNB Chain and crypto news!
Follow us on Twitter and Instagram!
If you need tools and strategies related to security and crypto education, be sure to check out BSC News’ Tutorials, Cryptonomics Explainers and Trading Tool Kits.
Check out the Web3Wire Linktree to stay up to date with all relevant Web3 and Crypto!
Looking for a job in crypto? Check out the CryptoJobsNow!
Learn Crypto Trading, Yield Farms, Income strategies and more at CrytoAnswers
https://nov.link/cryptoanswers
Comments are closed.