As a result of the vulnerabilities that are inherent in the smart contract, the DeFi business has been subject to a variety of attacks. Due to the immaturity of the industry as a whole, the DeFi protocols still need to have the necessary security optimization in their smart contracts to create a platform that is immune to hacking.
The most recent victim of the DeFi hacks is the BonqDAO, which was broken into when hackers got into one of the smart contracts and changed the price of the ALBT token.
Bonq is a system for collateralized lending that also creates a stable currency backed by the Euro called Bonq Euro (BEUR). According to an explanation given by the protocol on Twitter, hackers drove up the price of ALBT and created a lot of BEUR. After some time, they traded BEUR for other tokens and drove down the price of ALBT until it was nearly worthless.
According to the results of an independent investigation done by the blockchain security company PeckShield, about $120 million was stolen during the Bonq hack. PeckShield said the attacker tampered with the wALBT token’s price by altering Oracle’s updatePrice function in one of BonqDAO’s smart contracts.
AllianceBlock, the company that made the ALBT tokens, also said on February 1 that an exploiter had gained access to 113.8 million ALBT tokens.
The company also said that no smart contracts on AllianceBlock were hacked, and it is working on getting all of the money out of Bonq. It has also stopped the exchange trade. AllianceBlock also said in their release that they would create brand new ALBT tokens for everybody affected by the exploit.
