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The Fantom DeFi Stake Steak protocol suffered an exploit that allowed a hacker to mint massive amounts of the protocol’s STEAK token, causing a price crash of over 93%.
Stick share protocol attack
Another DeFi protocol has been hacked, this time on Fantom.
Stake Steak, a DeFi protocol that aims to keep the stablecoins of both fUSD and USDC, has suffered an exploit, crashing the protocol’s STEAK reward token by 93%.
It appears that a hacker managed to mint a huge amount of STEAK tokens while devaluing the STEAK-FTM liquidity pool’s liquidity provider, draining funds from several developers’ wallets. After the STEAK tokens were minted, the hacker dumped in the market, causing the price to collapse within minutes.
In response to the incident, the developers of Steaks took to Twitter, warning users not to try to “buy a dip” by buying STEAK tokens. In recent months, several hacks and exploits have caused the protocol tokens to crash, only for them to quickly come back after fixing the exploit, as was the case with THORChain and Popsicle Finance.
This time, a price recovery is unlikely. Spectators on Twitter noted that if the private keys of smart contracts are hacked, the token will not be able to recover until a new contract is published.
Guys don’t buy steak tokens. If PKs are in the wild, this token cannot be revived unless a new token is published.
you know. Buying the dip in this particular case is not the move. https://t.co/cmUBj14b40
– Fantom Community Alerts 🚨 (FTMAerts) October 4, 2021
Currently, the exact reason for the exploitation is unknown. However, the Stake Steak team reassured users that the funds deposited in the protocol’s SCREAM-FTM and USDC-FUSD pools are safe. In addition, the team stated that a full autopsy of the incident will follow once they understand how the exploit took place.
Disclaimer: At the time of writing this feature, the author owns BTC, ETH, and many other cryptocurrencies.
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