The Decentralized Finance Protocol (DeFi) 0VIX was the victim of a flash loan attack, resulting in the loss of around $2 million, according to on-chain data from Polygon’s block explorer. The attacker managed to steal 1.45 million USDC, along with other tokens, which were then transferred to the Ethereum mainnet via Stargate Finance and exchanged for ether (ETH).
0vix’s TVL plummets after attack
Before the attack, the fork of Compound Finance, 0VIX, had $6.4 million in TVL (total value locked). However, following the attack, this figure dropped to $1.7 million, with investors rapidly withdrawing their capital. The attack flash loan highlights the security challenges faced by DeFi projects, often targeted by attackers looking to exploit vulnerabilities in the code.
The incident of 0VIX is just the latest in a series of attacks and of hacks in the world of crypto currencies. These attacks highlight the risks inherent in the sector Challenge booming and highlight the need for strong security measures to protect investors and maintain market confidence.
0VIX’s response to attack
0VIX confirmed the attack on Twitter, stating that he “is working with its security partners to review the current situation.” The protocol also noted that only the Proof of Stake (POS) was affected, but zkEVM, another part of the protocol, was paused as a precaution. 0VIX plans to re-enable zkEVM soon, after carefully reviewing the situation and ensuring that no other vulnerabilities exist.
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