A mind-boggling cryptocurrency hack was carried out today. A hacker successfully captured the decentralized finance (DeFi) platform Cover Protocol, minting 40 quintillion COVER tokens and shattering the supply.

How was the DeFi token hacked?

In a new Medium blog post, Cover Protocol explains that the attacker used a bug in Blacksmith, the project’s shield mining contract.

LpTotal is expected to be greater than 1e18 wei (Pools are set to equal 10 covToken 100e18 BPT). If the total amount of pool is less, it acts as a multiplier instead (opposite of intended).

In case Grap Finance interacted with the contract, 1 wei remained in the pool. It multiplied the awards by 1e18, resulting in 40 quintillion COVERs printed.

The money was returned, but the protocol explained: “Don’t buy it”

The 40 quintillion COVER printing inflated the supply of cryptocurrencies, causing prices to fall by over 97%. Grap.Finance, who claimed responsibility for the attack, returned the money hours after the attack, telling Cover to fix the security issue.

Following the attack, Cover Protocol urged its 13,000 followers not to buy the local government token. Cover says it can take snapshots of the network before the attack, initiate a new token, and distribute the funds to investors.

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