In an attack, Defrost Finance was hacked. Some believe it was a rug pull.

by | Dec 30, 2022 | Market, News | 0 comments

Defrost Finance’s current price was $0.001623 USD, with a 24-hour trading volume of $3,398.69 USD. Our MELT to USD pricing is updated in real time. In the last 24 hours, Defrost Finance has dropped 40.32%. CoinMarketCap currently ranks #5106, with a live market cap of not available. There is no circulating supply and a maximum supply of 100,000,000 MELT coins. If you’re wondering where to purchase Defrost Finance at the moment, the main cryptocurrency exchanges for buying Defrost Finance shares are now Hotbit, TraderJoe, and Elk Finance (Avalanche). Others are included on our cryptocurrency exchanges page.

Defrost Finance is a decentralised system that allows you to use yield-bearing Tokens or other pool tokens from Avalanche and cross-chain protocols as collateral to generate H2O, a USD-pegged cryptocurrency. Defrost Finance assists customers in increasing capital efficiency from assets held in pools or vaults. It enables customers to supply liquidity in order to obtain more yields from services such as farming, borrowing, staking, swap, and bridge support for trading convenience.

Finance Must Be Defrosted

Decentralized-finance protocol has been hacked Defrost Finance reported it was hacked on Friday, however blockchain security firm PeckShield said the attack may have been a rug pull that stole $12 million, citing “community intel,” while Certik, another security firm, said it had been unable to contact members of the team. The Defrost team stated in a Sunday Twitter thread that the first assault utilized a flash loan to syphon cash from its V2 product.

A broader assault exploited V1 using the owner key. The amount taken was not specified in the protocol, which permits leveraged trading on the Avalanche blockchain. According to Peck Shields’ study, the attacker employed a bogus collateral token in conjunction with manipulated pricing. A rug pull, also known as an exit scam, occurs when developers build and construct a liquidity pool, then withdraw the cash and leave after investors have purchased the corresponding token.

According to Defi Llama data, the overall value of money frozen on Defrost Finance has plummeted from $95 million in February to roughly $13 million in recent weeks. It was less than $93,000 on Sunday. On Sunday, it was less than $93,000. It is unusual for an attack to be a rug pull. Typically, the scheme’s crew falls silent and cannot be reached. Defrost Finance, on the other hand, publicized the assault and stated in a tweet that it is prepared to engage with the perpetrators for the restoration of the monies.

Nonetheless, an attempt to contact the corporation via Twitter was futile because direct messages were not permitted on the account. Certik tweeted on Monday that it has attempted to “call numerous members of the team but have received no answer.” According to an accompanying graphic, it validated DeFrost as an escape fraud. DeFiYield, which provides a security layer for smart contracts to help investors avoid being scammed or hacked, said it audited Defrost Finance a year ago and identified the smart contract weakness that was used in the breach.

According to Chainalysis, crypto investors lost more than $2.8 billion due to rug pulls last year. Rug pulls contributed for 37% of the overall illegal money from crypto frauds that year, which was approximately $7.7 billion. The figure for 2022 is anticipated to be higher: According to a research from blockchain risk-monitoring firm Solidus Labs, scammers deployed over 117,000 scam tokens until December 1, 41% more than in all of 2021.