WOOFi confirms $8.75 million exploit on its Arbitrum market

• WOOFi has launched a autopsy report confirming an $8.75 million exploit on its lending market on Arbitrum.
• The decentralized change has provided a ten% whitehat bounty to the attacker.

Decentralized change WOOFi suffered an $8.75 million exploit that focused its lending market on Arbitrum, in line with a report the platform launched on Wednesday.

In a autopsy report, the WOOFi workforce famous that the attacker manipulated its Artificial Proactive Market Making (sPMM) algorithm.

After pausing the manipulated contracts, an investigation into the assault revealed the hacker carried out a collection of flash mortgage assaults, beginning at round 15:49 UTC on March 5.

“The exploit consisted of a sequence of flash loans that took benefit of low liquidity to control the worth of WOO with the intention to repay the flash loans at a less expensive value,” the workforce famous.

Through the assault, the exploiter borrowed roughly 7.7 million WOO tokens in addition to different cryptocurrencies. They then offered these tokens into WOOFi, inflicting the sPMM to incorrectly modify WOO token’s value to close zero.

With the anomalous pricing in place, the attacker proceeded to rapidly swap out 10 million WOO 3 times.

Whereas numerous blockchain safety platforms, together with PeckShield, Chainalysis, Hypernative, and Wintermute swiftly picked up the exploit, the attacker had already made off with $8.75 million in earnings.

WOOFi presents 10% whitehat bounty

WOOFi is providing an 10% whitehat bounty to the attacker as efforts to recuperate the funds proceed. The platform has additionally initiated bounty on Arkham Intelligence.

In the meantime, the change says its WOOFi Professional, Stake, and Earn providers weren’t affected and stay “totally operational.”

The WOOFi workforce posted on X:

3/ Now we have already initiated efforts to retrieve these funds, with a ten% whitehat bounty prolonged to the exploiter. Moreover, a bounty has been positioned on @ArkhamIntel for anybody who can present further info.https://t.co/oSG0CQa4oP

— WOOFi (@_WOOFi) March 5, 2024

WOO value fell sharply after the assault, from round $0.59 to lows of $0.48. The token’s worth modified fingers at $0.52 on the time of writing.