The Arbitrum-based Jimbos Protocol has been exploited for 4090 ETH worth $7.5 million three days after its version 2 launch.
PeckShield reported the hack was enabled by the protocol’s lack of control over slippage for the tokens under its control.
This hack is due to the lack of slippage control of liquidity-shifting operations — such that the protocol-owned liquidity is invested into a skewed/imbalanced price range, which is exploited in reverse swap for profit, PeckShield reported.
The liquidity protocol hacker made use of a $5.9 million flash loan to carry out the attack.
“We are aware of the exploit regarding our protocol and are actively in contact with law enforcement and security professionals. We will release further information when possible,” Jimbos Protocol tweeted.
Read More: Scam Tokens Ride The Wave Of Meme Coin Mania
The Arbitrum-based Jimbos Protocol was initially launched on May 16. But shortly after its launch, a smart contract bug halted the protocol from working. Users were told to not interact with version 1 and wait for version 2.
The token’s price has fallen 25% from $0.25 to $0.15 after the hack of the version 2.
The Defi protocol aimed to address liquidity and volatile token prices through a new testing approach. But it seems that the protocol’s mechanism was inadequate that created favorable conditions for attackers.
The crypto market continues to experience a drop after President Donald Trump announced a 100%…
Following complaints of consistency issues with the ASTER token airdrop, Aster DEX has announced a…
The Bureau of Labor Statistics (BLS) has rescheduled the release of the September Consumer Price…
A group of major world banks is working on a new stablecoin tied to G7…
U.S. President Donald Trump sparked panic in the crypto market after threatening to massively increase…
Morgan Stanley, which manages $8 trillion in assets under management (AuM), plans to allow all…