Rari Capital is treading on the same rake with hackers having a field day. As hackers made away with a big loot on April 30, 2022, the smartest roboadviser that ensures that its customers reap the highest yield is left in a lurch facing jabs from netizens left, right and center.
— 0xsifu (@0xSifu) April 30, 2022
Rari Capital and Fei Protocol are the latest victims of a significant exploit that rocked the decentralized finance Defi space. On-chain data depicts the hackers fleeced around $80 million from Rari Capital’s Fuse lending pools. Smart contract audit firm BlockSec also tweeted about the exploit and confirmed the theft.
one picture worth a thousand words 🙂 pic.twitter.com/dVxTMMpWZM
— BlockSec (@BlockSecTeam) April 30, 2022
The recent attack on Rari Capital’s fuse lending pool is similar to other Defi attacks. May last year Rari Capital’s ETH Pool was subjected to a similar attack where the hacker exploited what is known as the reentrancy bug, according to a tweet by the BlockSec team.
It is a smart contract exploit that facilitates a cyber attacker to cheat a protocol, allowing them to extract many smart tokens that don’t belong to them. BlockSec team even tweeted a picture to depict the vulnerability.
Fei Protocol and Rari’s Fuse Pools take the hit
Fei Protocol, which merged with Rari Capital in December last year, has accepted that it has lost a substantial amount to the hack and tweeted, “We are aware of an exploit on various Rari Fuse pools. We have identified the root cause and paused all borrowing to mitigate further damage.”
We are aware of an exploit on various Rari Fuse pools. We have identified the root cause and paused all borrowing to mitigate further damage.
To the exploiter, please accept a $10m bounty and no questions asked if you return the remaining user funds.
— Fei Protocol (@feiprotocol) April 30, 2022
Rari’s Fuse pools function on Ethereum’s DeFi network. It allows for generating isolated lending markets for all types of tokenized resources. Many bigger liquid lending protocols do not provide this facility. Fei, which supplies FEI to Fuse’s lending market, is a key user of Rari’s Fuse protocol. Due to this symbiotic relationship, the two projects went for a merger.
Crypto theft sees a surge in 2022
The year 2022 is witnessing a surge in terms of cryptocurrency heists from hackers using different vulnerabilities in the system. In 2021 around $3.2 billion worth of digital currency was stolen. According to data collated by cryptomonday.de, the first quarter of 2022 saw around 40 percent of 2021’s aggregate value of the cryptocurrency siphoned from various platforms.
To quantify, around $1.3 billion worth of crypto has been stolen alone in the first quarter of 20211, suggesting a major spike and 97 percent of the total stolen value was taken from various DeFi protocols, suggests the cryptomnday.de report.