BSC Serial Tragedy

BSC has become a hotbed for hackers after its boom. BSC is constantly experiencing security incidents where funds are stolen or arbitrated, with a total of 12 security incidents in May, resulting in a total loss of over $270 million.

ETH transaction fees kept rising until many people couldn’t accept it, and ETH users reversed to BSC with an average transaction fee of less than $0.3 per transaction, occupying a place in the market with low transaction fees and fast transaction efficiency, and the data grew very rapidly, which also promoted the rapid development of Defi. Every time you trade in Coin Smart Chain, you need BNB as payment for transaction fees. According to Mytoken, BNB’s market value reached $100 billion on May 10, which was noticed globally, ranking behind Bitcoin and Ether, and briefly becoming the 3rd token in market value.

After the BSC fire, it also became a hotbed for hackers, with BSC constantly experiencing security incidents of funds being stolen or arbitrage. BSC had a total of 12 security incidents in May, with a total loss of over $270 million.

SPARTAN PROTOCOL

Let’s start with the first one, the Spartan protocol, a decentralized protocol based on the Cryptocurrency Smartchain for incentivizing liquidity and synthesizing assets, was arbitrage on May 2 due to a “flawed liquidity share calculation” in the protocol, resulting in losses of over $30 million by on-chain analytics and security startup Posted by PeckShield, an on-chain analytics and security startup. In particular, PeckShield amplifies the balance of assets in the pool before a specific hacker destroys the same number of tokens in the pool to claim a large amount of money.

The attackers used $61 million in BNB to breach the pool through an unknown exploit path, removing approximately $30 million from the pool,” according to the official Spartan Protocol Twitter account, which first reported the incident on May 2 at approximately 12:21 a.m. UTC. The company first reported the incident at around 12:21 a.m. CST on May 2.

Spartan Protocol’s attack makes it second in DeFi’s history only to EasyFi’s $59 million, Uranium Finance’s $57.2 million, Kucoin’s $45 million, Alpha Finance’s $37.5 million and Meerkat Finance’s $32 million.

Venus

We witnessed first-hand the manipulation of the price of the Venus protocol managed token XVS on BSC, an event that led to the liquidation of over $200 million in DeFi and over $100 million in bad debt on the protocol, with hundreds of users suffering losses and liquidation as a direct result of the lack of a team, following the apparent manipulation of the price of the XVS token on the Binance exchange The system allowed maximum borrowing, forcing the liquidation of more than 2 million XVS.

The case resolves that after the DAI price prediction event ($88M), Compound kept records of the previous liquidation volume. At the time, the Chainlink community strongly criticized Compound Open Price Feed, but in fact the same operation was performed even with Chainlink.

Case analysis from Igor Igamberdiev’s tweet: https://twitter.com/FrankResearcher

BSC Serial Tragedy

(From The block)

The price of the prophecy machine has almost doubled, which has allowed at least two Venus accounts to borrow a large amount of assets. It’s unclear exactly where Chainlink gets its XVS price data from, but given that there is essentially only one liquid market, it doesn’t matter.

BSC Serial Tragedy

(Image courtesy of The block)

This clever thief, after stealing the funds, left $80 million in bad BTC debt on Venus Venus that they will never be able to pay back. All of their collateral has been liquidated, so it makes no sense for no one to pay the debt.

BSC Serial Tragedy

(Image courtesy of Venus)

They withdrew from Binance and used almost 1m XVS ($52m at current prices) as collateral at the peak. From the agreement, they were able to borrow 4.2k BTC ($165m), which they then sent to the BSC Token Exchange.

BSC Serial Tragedy

Venus, known as Cryptocurrency’s own son, the most important lending platform of Cryptocurrency’s smart chain, had such a terrible incident that it caused a very big disturbance to its platform’s later operation. Ordinary users were traumatized most severely, and those who were hurt kept spreading the seeds of their anger until they took root or until they were fortunately wiped out.

pancakebunny

In the case analysis, thieves minted over $ 1B ($100M) worth of BUNNY tokens from Bunny Finance on BSC + 697K BUNNY tokens, resulting in $40M + stolen: 114K WBNB ($40M). As a result, BUNNY price dropped from $ 146 to $ 6.

BSC Serial Tragedy

(From pancakebunny Twitter)

The thieves did the following: 1) added a small amount of assets to the “BUNNY” USDT-WBNB Vault. 2) used emergency loans to borrow 2.3 million BNB ($704 million) from the 7 PancakeSwap pools and 2.9 million from ForTube Bank USDT.

BSC Serial Tragedy

(from BSC)

3) Added 7.7k BNB and 2.9m USDT liquidity to PancakeSwap’s USDT-WBNB pool, while keeping LP tokens in this pool.

4) Converted 2.3m BNB to USDT via this pool.

BSC Serial Tragedy

(From BSC)

5) mined 7 million BUNNY ($ 1B +) using assets from step 1, but since there were additional LP tokens in the PancakeSwap pool, Bunny Finance believes the exploiters added a large amount of BNB. 6) sold £4.8 million in exchange for 2.3 million WBNB and 2.9 million USDT, then started repaying the quick loan.

BSC Serial Tragedy

(From BSC)

The root cause is that attackers can manipulate the price of BUNNY mints.

BSC Serial Tragedy

The attackers have already withdrawn 10.1k ETH ($23.5m) to Ether via the Neural Bridge, with another $14m at their BSC address.

BSC Serial Tragedy

(Image source BSC)

After the attack on pancakebunny, the price of its token BUNNY fell from a high of $240 to zero in just 30 minutes, and the price of BUNNY has held steady at around $20 for the past few days.

BSC Serial Tragedy

(Image courtesy of BUNNY / BNB: Poocoin.app)

DeFi100

On May 23, 2021, the most arrogant thieves, stole $32 million and announced on their official website: “We cheated you, but it’s useless to do anything about it.

BSC Serial Tragedy

(From DeFi100 official website)

In their Twitter update, DeFi100 stated that it was a hacker who attacked them, and that such arrogant statements were also made by hackers, DeFi100 also mentioned that they are trying to find a way to get the project restarted. Whether all this was really stolen, or a supervised theft, we can’t parse the dark side. With tokens dropping to $0.13, these tokens have lost their value and people can no longer trust these projects.

Value DeFi

1/8. With about $11 million stolen from the non-50/50 pool on May 7, in addition to the $6 million already lost this week due to contract reinitialization, let’s see what happened.

BSC Serial Tragedy

2/8. The following are 9 of the 16 pools that were attacked.

vBSWAP / WBNB (70/30) gvVALUE / BUSD (98/2)BDO / BUSD (80/20) vBSWAP / BUSD (98/2)

FARM / WBNB (70/30)

RON/STEEL (60/40) BDO / vBSWAP (70/30) BAC / BUSD (80/20) BASv2 / WBNB (60/40)

3/8. Stolen funds

15k-BNB

2.7k-FARM1.7k-BASv28.5M-BDO68.3k-BUSD

41.4k-MDG945k-VBOND1.2M-BAC11k-FIRO

These tokens were exchanged to 3.24k-anyETH and withdrawn to Ether.

BSC Serial Tragedy

(From BSC)

4/8. The exploit looks like this: 1. First, the attacker sends a small number of second tokens to pair addresses. 2. To perform the exchange, they have to extract a small number of first tokens and a large number of second tokens.

BSC Serial Tragedy

8/5.

  1. In the wrong use of the Bancor formula, the pairing contract considers the swap to be successful (exploit part)
  2. The attacker swaps the first token in the same pool for the second token and repeats this operation until the exploit allows it.
BSC Serial Tragedy

8/6. Since Uniswap does not support pools with asset ratios other than 50/50, BSC’s Value DeFi uses the Bancor formula for non-standard pools. It seems that everything is in order and it is necessary to do a few power operations, but not everything is so simple…

BSC Serial Tragedy

7/8. In the power() function description, the function does not support the case ” _baseN” <_baseD”, which is the root cause of the vulnerability exploitation. This function does not work properly because the balance of the second token in a pair is much less than before the exchange.

BSC Serial Tragedy

8/8. This is not the first and last time that a project team forks someone else’s code without a deep understanding of their work. It is foolish to think that CZ will save you money if you carelessly deposit money into projects with anonymous developers or obscure teams.

Godfish has also previously told Value DeFi that the project was attacked six times, and the kindly advice was not appreciated by the hotheads. value DeFi had its funds stolen twice in the same week, leaving it with an original $1 billion lockup, which dropped its TVL to $20 million, an 80% drop, after it collapsed in a flash.

Users who suffered significant losses were slightly compensated with all vBSWAP in the Reserve Fund (2802.75 vBSWAP) and 205,659 BUSD from ValueDeFi deployers going to all users in the pool. The remaining 4540 vBSWAP will be minted and used to compensate all affected users immediately or in two parts.

After the May 24 pancakebunny copycat plate AutoShark rolled up $700,000, another copycat plate appeared a day apart called Merlinlab, which was attacked twice a day, repeating AutoShark’s old ways and rolling up $6.8 million, these scams continue to parasitize the Coin Security Smartchain (BSC) to deceive users.

The scams or hackers then keep finding ways to profit, wave after wave of attacks hit BSC, totaling over $300 million in losses, the ecology was hit hard, and hurt users fled in droves, and even with this bad situation, I still believe they can pull it off.

Back to the beginning of the development of Defi of Ether, it was also attacked a lot, and in the whole year of 2020, Defi of Ether project lost a total of 120 million USD, as DeFi is a decentralized trading mechanism without any regulator, the purpose of hackers’ frequent attacks is to get high returns and profit-driven hacking.

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/bsc-serial-tragedy/
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

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