Popular DEX platform Thorchain suffered a cyberattack yesterday costing nearly $7.6 billion. The hackers made the big hit using Chaosnet but paid a huge underperformance fee on noes and LP. Thorchain officials stated in their damage report that only LPs were affected by the attack, and they announced that they would compensate the damage by using the reserve funds.
The approximately $1.4 million underperforming fee paid by the attackers was saved by the nodes. In addition, another $1.4 million ERC20 token was acquired by LPs. Thus, 5 million dollars will come out of the THORCHAIN treasury to cover the losses of ETH LPs that were damaged.
The platform quickly intervened and stopped the blockchain in case the attack could continue. This was an action criticized by investors. However, a recovery plan has been released today and updates to the apps have been released.
V0.60.1 has been released and 2/3rds have updated. The network is online and observing.
The ETH chain is artificially isolated, in the next update V0.61.0, it will be isolated as part of consensus rules.
— THORChain (@THORChain) July 17, 2021
Unfortunately, this is not the first attack on the network. Just last month, there was another loss of about $140,000 – considerably lower than yesterday’s attack. At the time, the platform claimed that the maturity structure and flexibility of the network were able to keep the attack to a minimum.
THORChain is a very mature and resilient network.
The first exploit attempt was limited to only 140k which is a small amount compared to other exploits. pic.twitter.com/NG16BJMEam
— THORSwap ⚡ ᚱ (@THORSwap) June 29, 2021
Thorchain compares network vulnerabilities and exploits to the early days of Bitcoin
Today, the DEX platform, in its defense, compared such attacks to the early Bitcoin network. Thorchain officials, who made a series of statements on Twitter, referred to an incident that took place on the Bitcoin network on August 15, 2010, resulting in the theft of $1.8 billion worth of BTC. He also shared a screenshot of Satoshi Nakamoto’s advice on a forum to stop the network and pause blockchain creation.
Defi has become a multi-billion dollar ecosystem and is still a promising industry that remains popular. We see that a new DeFi protocol is implemented every week. The size of funds in DeFi causes fraudsters to flock to this ecosystem. As it is known, cyber attacks have been occurring frequently in DeFi since last year.