Protocol for decentralized trading A smart contract exploit hit Tinyman, which was built on Algorand. After all was said and done, the procedure is estimated to have lost $3 million.
According to a blog post, Tinyman, an Algorand-based decentralized trading mechanism, was attacked on January 1, 2022. The attacker took use of a flaw in Tinyman’s smart contracts, resulting in the compromising of some pools. The overall loss is believed to be in the neighborhood of $3 million.
The hack caused “a drain of some ASAs in the first hours of the strike, which contributed to heightened volatility in the immediate aftermath,” according to the release. The team is still looking into the incident and has offered to compensate anyone who were harmed.
The team claims that the offenders activated their wallet addresses and deposited a seed fund for the attack in order to carry it out. They began focusing on the pools, swapping some monies and issuing Pool Tokens.
The vulnerability, which involved the burning of these Pool Tokens, allowed the attackers to get two of the same item rather than two separate assets. The attackers carried out the attack in this manner, stealing $3 million, according to the team.
Because Tinyman is a truly decentralized protocol, transactions cannot be reversed or prevented. Tinyman users should instead take liquidity from contracts, according to the report. Tinyman’s total liquidity has dropped to $20 million from $43 million prior to the attack.
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