• WOOFi has launched a autopsy report confirming an $8.75 million exploit within the Arbitrum lending market.
• The decentralized change provided the attackers a ten% white hat bounty.

Decentralized change WOOFi suffered an $8.75 million exploit concentrating on the lending market on Arbitrum, in line with a report launched by the platform on Wednesday.

In a postmortem report, the WOOFi group famous that the attackers manipulated the Artificial Proactive Market Making (sPMM) algorithm.

After suspending the manipulated contracts, an investigation into the assault revealed that the hackers carried out a collection of flash mortgage assaults beginning at roughly 15:49 UTC on March fifth.

“The exploit consisted of a collection of flash loans that took benefit of low liquidity to govern the value of WOO with a view to repay the flash loans at a less expensive value,” the group famous.

Throughout the assault, the exploiters borrowed roughly 7.7 million WOO tokens and different cryptocurrencies. He then bought these tokens to WOOFi, which brought on sPMM to by accident modify the value of his WOO tokens to close zero.

As a result of uncommon pricing, the attacker continued to shortly change 10 million WOO thrice.

Varied blockchain safety platforms akin to PeckShield, Chainaries, Hypernative, and Wintermute shortly found the exploit, however the attackers had already made a revenue of $8.75 million.

WOOFi gives 10% white hat bounty

As efforts to recuperate funds proceed, WOOFi is providing a ten% white hat bounty to the attackers. The platform has additionally launched bounties for Arkham Intelligence.

In the meantime, the change stated its WOOFi Professional, Stake, and Earn companies are unaffected and stay “absolutely operational.”

The WOOFi group posted on X:

3/ Now we have already began efforts to recuperate these funds and exploiters will obtain a ten% white hat bounty.As well as, there are additionally bounties being provided. @Arkham Intel For many who can present extra info. https://t.co/oSG0CQa4oP

— Woofi (@_WOOFi) March 5, 2024

After the assault, WOO's value plummeted from round $0.59 to a low of $0.48. On the time of writing, the worth of the token was fluctuating at $0.52.