The DeFi hack tsunami affects yet another platform.
Zunami Protocol, a known name in the decentralized finance world, has recently issued a clear warning to its users against purchasing its stablecoins, Zunami Ether (zETH) and Zunami USD (UZD), in the wake of a significant security breach.
On August 13th, through a post on platform X (formerly Twitter), Zunami Protocol unveiled an issue concerning its "zStables" pools, prominent features on Curve Finance.
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While the attack brought much speculation, the protocol quickly clarified that all collaterals were still safe. Following the announcement, the protocol is channeling its resources towards a deep dive into the event, hoping to establish the root cause and scope of the exploit.
In an attempt to quantify the impact, blockchain security expert PeckShield has put forth an estimate, pinning the damage at a staggering $2.1 million stolen from Zunami’s Curve Pool.
PeckShield's initial analysis suggested a loophole in price manipulation, leading to the breach. A chronological look at the day reveals that PeckShield was on its toes, promptly identifying the exploit on Curve at 10:47 UTC on August 13th, only 20 minutes before Zunami Protocol officially acknowledged the security breach.
Zunami Protocol functions as a decentralized revenue aggregator in the vast DeFi landscape, offering users the opportunity to lock in their stablecoins in hopes of lucrative yields. The bulk of these staking pools, now at the center of this controversy, are hosted on Curve. It is worth noting that two weeks ago, Curve Finance itself was hit by a cyberattack.
The incident at Zunami Protocol underscores the persistent security challenges shadowing the promising world of decentralized finance. As the crypto world keenly awaits the results of the ongoing investigation, it's pivotal for users to remain vigilant following the advisory issued by Zunami.