- Known smart contact bug used to exploit Zabu Finance
- Hacker minted more than 4 billion reward tokens
- The price of ZABU token collapses
DeFi protocol Zabu Finance has suffered a $3.2 million loss after what is termed as the biggest hack in the history of the avalanche ecosystem. On Sunday, September 12, DeFiPrime tweeted the news of the hack, noting that the Zabu platform had lost more than $3 million in the hack. Avalanche also confirmed the hack with a tweet stating that the funds were taken from the SPORE pool.
The protocol added that the hacker took advantage of the protocol’s ‘Transfer Tax’ mechanism to mint more than 4 million tokens, causing the collapse of the token’s price. The hacker took advantage of a contract used for reward distribution with security firms noting that the same bug had occurred before.
The removal of millions of ZABU tokens caused the price of the token to go from $0.004 to zero. ZABU becomes one of the many decentralized platforms exploited in 2021, with more than $1.6B lost in similar hacks.Kibet Elikana