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Defi Protocol BadgerDAO Suffer $120 Million Exploit

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@xabi
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Evening

So after a pause of few months it seems hacks/exploits are back on defi world, and this time its BadgerDAO. BadgerDAO, a DAO meant for providing yield for bitcoin, today suffered a big hack, with its users loosing $120.3 million. As per initial assessment the hack was worth $10 million but latter on security company PeckShield revealed that losses were way bigger than anticipated.

BadgerDAO is a defi protocol bringing yield farming to Bitcoin. The idea is bridging the Bitcoins over to some smart contracts supporting network like Ethereum as Wrapped Bitcoin, where they can be used in myriad of defi applications. BadgerDAO provides variety of vaults where wrapped bitcoins can be staked for earning yield.

It seems the front end interface of BadgerDAO was exploited to intercept the transactions. As per one of project's admin, apparently an API key for Cloudflare got compromised. To prevent any further loss of funds BadgerDAO's team has already frozen all the smart contract till further notice.

Although the current BadgerDAO's exploit dwarfs the Poly Network's hack of more than $600 million back in august, but $120.3 million is still huge and defi community was again reminded the risks and challenges this lucrative world of yield financing holds.

Posted Using LeoFinance Beta