DeFi App Steadefi Exploited: Ongoing Attack

Introduction

Steadefi, a decentralized finance (DeFi) app that runs on the Binance Smart Chain, has been exploited in an ongoing attack, according to a tweet from the project’s official Twitter account on Friday. The tweet stated that the team was aware of the issue and was working to mitigate it.

Background

Steadefi is a DeFi platform that allows users to earn interest on their crypto holdings by providing liquidity to various pools. The platform also offers a governance token, STEADY, which can be used to vote on proposed changes to the platform.

The exploit appears to have started on June 25, 2021, when a user was able to mint an unlimited number of STEADY tokens. The attacker then used these tokens to vote on proposals and drain liquidity from various pools.

The Steadefi team immediately took action to mitigate the attack, disabling all minting functions for the STEADY token and halting all trading on the platform. They also advised users not to buy or sell STEADY tokens until the issue was resolved.

Ongoing Attack

As of the time of writing, the attack is still ongoing. The attacker is now using a bot to repeatedly vote on proposals and drain liquidity from the pools. The Steadefi team has stated that they are working on a solution and will update the community as soon as possible.

Impact

The exploit has had a significant impact on the Steadefi platform, with the price of the STEADY token dropping by over 90% since the attack began. The total value locked on the platform has also decreased significantly, from over $20 million to just over $1 million.

Related:PayPal USD Boon for Ethereum but not Decentralization, Says Community

Conclusion

The ongoing attack on Steadefi is a reminder of the risks associated with DeFi platforms. While they offer the potential for high returns, they are also vulnerable to exploits and attacks. The Steadefi team is working to mitigate the damage caused by the attack and restore the platform’s functionality. However, it remains to be seen how long it will take to resolve the issue and regain the trust of the community.

Official Accounts

Official Telegram Channel: https://t.me/CryptoInsidersOnline
Official Instagram Account: https://www.instagram.com/cryptoinsiders_news
Official Twitter Account: https://twitter.com/CryptoinsiderHK
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