Spartan Protocol on the Binance Smart Chain got exploited with $30 million getting stolen by a hacker so let’s read more in our latest Binance news today.
Spartan Protocol is a Defi project on the Binance Smart chain and was exploited for over $30.5 billion while the hackers’ whereabouts remain unknown and a second version of the protocol is being rebuilt with new bug fixes. The platform provided a platform for incentivized liquidity and synthetic assets while the SPARTA token had an internal pricing mechanism without having to rely on the external oracles for the price settlement. A system like this could provide a fundamental basis for a trustless network of swaps, lending, derivatives, and synthetic tokens.
Detailed analysis of the bug in Spartan Protocol v1.
Where to now?
Community fund a https://t.co/mfghq1UJjH for Spartan Protocol v2.
Rebuild the shield wall.https://t.co/s11s9rWTtA
— Spartan Protocol (@SpartanProtocol) May 2, 2021
The protocol claims to have no investors, no treasury, and no team tokens stating that the personal funds were backstopping the liquidity in the protocol and that the funds were stolen as well. They are all working on rebuilding from the ground up and claim that they will rebuild the shield wall which will be free of bugs and exploitable codes. A Twitter thread explained how the exploit occurred and the bug in the code used current balances instead of cached balances in order to calculate the value of the LP tokens. This allowed the LP token to break up into composite tokens that are correct because the pricing received by the protocol was incorrect.
They may have taken our funds, they may have kicked us when we were down, they may have thrown shade and spread mis-information, but they did not take our souls.
Spartans – we will rebuild. Assemble the shield wall. pic.twitter.com/9zu6IWycpt
— Spartan Protocol (@SpartanProtocol) May 3, 2021
The flash loan attacks were seen in the past when the Uranium finance hack ended up losing $50 million. In this incident today, over $30.5 million was stolen including $19 million in BNB. The hacks of this magnitude are only a reminder that the code is as safe as the coder who wrote it and the crypto space is still a nascent industry. Anything the promises huge returns always has an underlying risk and the investors will have to keep this in mind at all times. According to the Spartan Protocol twitter, the crypto security and audit company CertiK audited their code with the code being deployed currently which is why it excluded the exploit.
As reported previously, The Binance Smart Chain dapp TurtleDEX performed an exit scam on its users today and stole $2.5 million and deleted the social media profiles.
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