- Visor Finance lost 8.8 million tokens in a DeFi hack, which simultaneously caused VISR prices to fall from $0.93 to $0.0659.
- Visor Finance is planning a migration to reimburse users. The identity of the hacker remains unknown, but he manages to buy ETH from the compromised tokens while maintaining his anonymity via Ethereum’s Tornado Cash.
- Not the first time Visor Finance based on Uniswap V3 has been the victim of an attack. Many have suffered this year, while this hack only affected VISR holders and stakers.
Visor Finance is facing a multi-million dollar hack, the latest DeFi protocol to be hacked. Visor Finance is an Ethereum-based DeFi project aiming to support programmable liquidity, which lost about 8.8 million VISR tokens in a hack where a hacker exploited the reentrancy bug. At the time of the hack, the VISR token was trading at $0.93, which is estimated at a loss of $8.2 million. The hackers sold the tokens via Uniswap after the withdrawal, according to the reports. The hack had a massive impact on VISR prices, dropping them by 86% from $0.93 to $0.0659.
Details from the event
The team shared details of the hack and explained the exploit that affected the vVISR staking contract. To cloak themselves, the hacker used Tornado Cash, Ethereum’s privacy tool used to obfuscate transaction history on the Ethereum network. It’s the same tool used by the SquidGame token scammers to get away with the funds while leaving no trace. The hack primarily affected token holders and VISR stakers, as prices have steadily declined since then.
VISR to ETH in no time
Most of the tokens acquired by hackers have already been traded against ETH using Uniswap. The hacker also initiated the channeling of funds via Tornado Cash, so the identity of the culprit remains unknown. However, it has been estimated that the hacker will end up not receiving $8.2 million, but rather less as the token’s value continues to decline. The hacker successfully put 243 ETH in his wallet, valuing around $978,561. Another $135,000 will be added to the wallet in the form of 0.475 ETH & 3.6M VISR.
Statements from the team
The developers of the protocol tweeted that they are aware of the use of the VISR staking contract and are planning a migration plan, and no positions are at risk, saying, “We are aware of an exploit of the vVISR staking contract.” and implement a migration plan for affected VISR. No positions or hypervisors are at risk.” A comment on her own tweet read, “We will restore affected VISR stakers.”
The team will manage the migration to compensate their users based on the data recorded in the screenshot taken before the hack. Token migration is the most suitable way to overcome such DeFi hacks. This process gives the user the privilege of getting the same amount of tokens based on the user’s actual holdings. This migration allows users to redeem an amount equal to the VISRs they hold.
Visor Finance & the DeFi ecosystem
Visor, as it presents itself, is a protocol for wealth management in the DeFi ecosystem, built on top of Uniswap V3, aiming to find a way to optimize returns for liquidity providers and projects. In July, the company raised $3.5 million from many big industry players, including Spartan, DeFi Alliance, 1confirmation, and Digital Currency Group. Although Visor has steadily gained momentum since its inception, it has been hacked several times this year, the most recent except this one in November, which emerged from the Uniswap V3 arbitrage.
Is DeFi unsafe?
The scams and hacks in the DeFi ecosystem remain unchecked in the crypto industry this year. Grim Finance also faced an attack earlier this month, in which a hacker stole $30 million worth of cryptocurrency. Hackers somehow managed to access the project’s wallet via a smart contract’s malicious token. The biggest of them all, a DeFi hack, happened in August this year, where attackers used $600 million worth of various cryptocurrencies across multiple platform networks like Polygon, Ethereum, etc.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while in college. He is a keen eye for detail and shares his passion for writing with his work as a developer. His backend knowledge of blockchain helps bring a unique perspective to his writing
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