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Raydium, one of the largest decentralized exchanges (DEXes) on the Solana blockchain, has been mined with over $2 million.
The protocol announced early Friday that an attacker had managed to take “owning authority” from the organization that gave them access to funds and used it to drain Raydium’s liquidity pools.
In DeFi, a liquidity pool is a collection of user funds locked and accumulated in a smart contract to enable trading on a DEX. Liquidity pools help maintain liquidity on a network by rewarding users who contribute assets to the pool.
According to crypto research firm Nansen, the attacker’s wallet received over $2.2 million worth of tokens, including $1.6 million in SOL, the native token of the Solana blockchain.
Prism, another Solana-based DEX, found that an unauthorized user had access to the admin wallet and was draining assets from Raydium’s liquidity pools. The log asked users to withdraw their PRISM/USDC liquidity from Raydium and claimed to have already done so. It said:
“There seems to be a wallet that drains LP pools from Raydium liquidity pools by using the admin wallet as a signer without having/burning LP tokens. We have withdrawn the protocol provided PRISM/USDC liquidity from Raydium.
Raydium is one of Solana’s largest decentralized finance protocols and is considered one of the cornerstones of the Solana DeFi ecosystem. According to DeFiLlama, over $31.7 million worth of assets are currently locked on the log. The DEX had over $2.2 billion in TVL at its all-time high in mid-November 2021.
After the hack, Raydium’s native token RAY took a hit and lost over 10% in a matter of minutes. The token is currently trading at $0.153385, down 12% in the last 24 hours. Meanwhile, SOL is down around 8% over the past day.
The Solana DeFi ecosystem was hit particularly hard by the collapse of the FTX exchange due to its strong ties to trading and investment empire Sam Bankman-Fried.
It was also revealed after the FTX exchange was hacked in mid-November that the private keys of Solana’s decentralized exchange and liquidity provider Serum were also housed on the exchange. Subsequently, the developers of the project announced that they were working to fork Serum’s code as many projects rushed to cut ties with Serum.
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