Decentralized Finance (DeFi) yield aggregator Zunami Protocol has fallen victim to an exploit potentially causing losses exceeding $2.1 million, as reported by security firm PeckShield. The attack was linked to price manipulation, leading to an ongoing investigation by Zunami Protocol’s team.
PeckShield’s detection of the attack was followed by an announcement from Zunami Protocol on Twitter, acknowledging the incident. The protocol confirmed that while zStables encountered an attack, the collateral remained secure. Consequently, they advised users against purchasing zETH and UZD due to the ongoing situation.
The attack was primarily a result of price manipulation, where the attacker exploited a vulnerability in the protocol’s mechanisms. This manipulation could be used to incorrectly calculate prices, potentially causing further disruptions in the system.
Interestingly, blockchain security firm SlowMist, through its founder Xian Yu, revealed that they had identified this vulnerability two months prior. Yu explained that the project had been informed privately about the risk in advance. Unfortunately, the communication between SlowMist and Zunami Protocol had been less than optimal, leading to the current incident.
This exploit highlights the ongoing challenges faced by DeFi platforms in terms of vulnerabilities and the need for prompt action to address them. As the DeFi space continues to grow and evolve, security concerns and swift responses become crucial in maintaining the trust of users and safeguarding the integrity of these platforms.