The Orion System is the most recent decentralized finance (DeFi) protocol to be exploited this year. On-chain investigators have recently published the attack’s post-mortem.
On February 2, Orion Protocol was the victim of a reentrancy attack, resulting in a loss of around $3 million in ETH.
Additionally, Orion CEO Alexey Koloskov stressed that the harm was limited to an internal broker account and that customer assets were protected.
Rekt issued a post-mortem of the assault, which was one of the most costly of the year thus far in terms of losses, over the weekend. It summed up the DeFi invasion.
“The attacker took advantage of engineered swaps of flash borrowed stablecoins, depositing the assets twice before withdrawing the inflated sum.”
The exploiter was able to quadruple their balance before fleeing with the stolen cash by producing and utilizing a phony token (ATK).
On February 5, Orion’s co-founder expressed relief that no users were impacted by the hack.
The Orion Protocol is a liquidity aggregator with the goal of bringing CEX liquidity to diverse blockchain networks.
This year has already seen numerous high-profile DeFi exploits. On January 12, the LendHub DeFi lending and borrowing mechanism lost $6 million. According to DeFiYield’s Rekt database, Thoreum Finance and Midas Capital were also targeted last month.
PeckShield, on the other hand, reports that January’s numbers are down from the same time last year.
According to the blockchain security firm, crypto vulnerabilities in January were 93% less than the $121 million lost to exploits in January 2022. Only $8.8 million was lost to different flaws and assaults on the industry last month.
On February 4, Orion released an update indicating that it has resolved a number of concerns, including bug fixes and interface modifications. According to Rekt, the $3 million loss “inspired Orion to adopt a more disciplined approach.”
The exploit had no effect on the Orion native token ORN. It was trading at $0.964 at the time of publication, down 3.6% on the day.
Furthermore, prior to last week’s attack, ORN was trading at little over a dollar. In accordance with most other cryptocurrencies, the DeFi asset has risen roughly 25% in the last month.
However, ORN is still down 96.7% from its all-time high of $29.25 in March 2021.