ForceDAO, a new DeFi project, got attacked by hackers this morning. The Ethereum-based project describes itself as a DAO for quant finance. It intends to leverage high returns from yield-bearing DeFi protocols. It also offers superior returns by adhering to community-proposed strategies and repaying the strategists with powerful incentives.
The Ethereum-based yield aggregator had only just started its airdrop campaign on April 3 when four malicious “black-hat” hackers succeeded in draining a total of 183 ETH worth around $367,000 at the time. One friendly “white-hat” hacker also supported the team by warning them to stop additional losses. The team has issued a post-mortem of the attacks and took accountability for what it termed an “engineering oversight.”
Moreover, the blockchain lead at Polymath Network, Mudit Gupta, tweeted on Twitter to illustrate what happened. The hackers misused a known Solidity issue (Solidity is the underlying code of Ethereum), enabling users to acquire FORCE tokens via an illegal process. Hackers could manipulate how xFORCE tokens are managed on the platform and receive FORCE tokens in return, he tweeted.
ForceDAO Shifts 60 Million tokens to Deployer Wallet
Following the raid, the team decided to shift 60 million FORCE tokens from the treasury multi-signature wallet into a deployer wallet to develop and achieve three votes that would efficiently burn the FORCE balances three of the hackers’ addresses. The post-mortem revealed that the xFORCE platform hit was a fork of a SushiSwap smart contract comprising a mechanism to return tokens in the event of failed transactions. The protocol specifies xFORCE as the “interest-bearing” version of FORCE, describing shares in its pools comparable to how LP tokens operate.
Furthermore, the team confirmed the attack and mentioned that the attack would have been easy to stop. Recently, the hack is under investigation as some of the addresses arose from famous exchanges like FTX and Binance. Moreover, they will take a snapshot, and the project will be re-launched with a new xFORCE token. After the launch and airdrop, the FORCE tokens price surged to over $2 on April 4. However, it has since dropped over 95% to $0.05 at the time of the publication.
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