- Zunami Protocol hit by a flash loan attack, losing over $2 million in ETH on August 13.
- Attackers manipulated prices of key tokens, draining liquidity from UZD and zETH emissions, leading to the breach.
- Zunami Protocol team plans fixes, audits, and collateral distribution to affected holders, aiming to regain trust in the aftermath of the breach.
In a recent incident, the Zunami Protocol fell victim to a flash loan attack on August 13, 2023, resulting in a significant loss of 1,178 ETH, valued at approximately $2.16 million. The complex attack involved manipulating the price of StakeDAO (SDT) on Sushiswap, effectively disrupting the balance of UZD, Zunami’s stable token. The protocol released a Post Mortem of what happened exactly.
According to the post mortem, the attackers also employed flash loans, a technique that allowed them to rapidly inflate the prices of SDT and CRV tokens. This manipulation enabled the exploitation of UZD and zETH emissions, allowing the attackers to drain liquidity from the UZD/FRAXBP and zETH/frxETH pairs.
The Zunami Protocol team, the brains behind the affected DeFi platform, took to their official communication channels to address the incident. In a statement, they acknowledged the attack and confirmed that the loss exceeded $2 million.
In a bid to regain the trust of their community, the protocol outlined their plans for the future. The team intends to implement necessary fixes, update both the omnipools and zStables, and undergo a thorough audit with a reputable third-party company for the upcoming zStables V2 release. They also made it clear that they would fully reimburse the zStables collateral to the affected holders.
As part of their recovery efforts, the Zunami Protocol team also assured the community that the UZD and zETH collateral would be distributed to the holders shortly before the hack occurred. They emphasized their commitment to providing equal compensation to all affected participants, regardless of their involvement in liquidity pools or their wallet addresses.
In the aftermath of the breach, the Zunami Protocol team is actively calculating balances and preparing to release detailed data related to the attack. They have also outlined their plans to provide collateral in USDT, USDC, and DAI to the affected users, within the next one to two weeks. However, users are advised that they will need to initiate the claim process themselves through the contract.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
