News05 October 2021

Latest DeFi Exploit On Stake Steak Protocol Sends The Token Plunging By 93%

DeFi Exploit On Stake Steak Protocol Sends The Token Plunging By 93%

Summary

  • Stake Steak becomes the latest victim of cyber-attacks on DeFi platforms
  • STEAK token price crashes by more than 90%
  • Price recovery unlikely for STEAK

Fantom-based decentralized finance protocol, Stake Steak, is the latest victim of the latest cyber-attacks on DeFi platforms. In this newest exploit, hackers managed to mint many STEAK tokens that caused the price to crash by more than 90%.

Stake Steak is a DeFi protocol that works with the USDC and fUSD stablecoins. The hacker managed to mint the massive STEAK tokens and devalued liquidity provider tokens in the STEAK-FTM liquidity pool. The hacker also drained funds from several wallets. Once the tokens were minted, they were dumped in the market, causing the price of STEAK to crush.

Responding to the hacking incidence, steak developers warned users not to buy the dip. Price recovery seems unlikely for STEAK. Online onlookers have pointed out that the smart contracts private keys were compromised, which calls for a new contract deployment to save the protocol.

Stake Steak team assured investors that funds in other pools on the platform like SCREAM-FTMA and USDC-FUSC were safe as they plan to give you a full report of the hack as soon as they get to the bottom of it.

Kibet Elikana
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