About 370,000 USdcs were stolen after a loophole was found in the Opyn contract, an on-chain option platform
Rhythm BlockBeats news, & NBSP; August 5, chain options platform Opyn Announcing the discovery of a contract loophole,371,260 USdcs have been stolen. The team said the investigation has not been completed and the exact amount of damage has not yet been determined. And with the help of white-hat hackers, 439,170 usDCS have been recovered that have never been repaid. Officials say that Opyn contracts other than ETH put options are not affected by this. The team is willing to redeem the affected user's put option on Deribit at 20% above the market price.
Opyn is essentially an option on the chain. Opyn's team built an unmanaged margin trading platform based on Taifang, Compound, Uniswap and DAI that allows anyone to go long or short ERC20s on the platform. Therefore Opyn It is also often seen as a Defi hedging tool and a decentralized risk management platform.
Hacker operation
The vulnerability that currently only affects Opyn's Ethereum contract allows an attacker to "double exercise" oTokens. And steal the collateral provided by some of the sellers of these puts.
Remedial measures
Because Opyn is a permitless decentralized protocol, the team cannot simply turn off user access to the protocol, as many other protocols do. To limit further losses, Opyn temporarily suspended the liquidity of its ETH put pool on Uniswap to prevent others from buying the options, and canceled users' access to Opyn. Option to buy opyn Put options. To ensure liquidity for existing option holders, Opyn offered to buy all options outstanding during the development period at 20% above the market price. (If you currently hold a put option on ETH, contact the Opyn team, who is willing to redeem the put option at a 20% premium to the Deribit market price.)
According to officials, users who currently hold ETH call contracts, such as dCOMP puts, BAL puts, cToken puts, or aToken puts, are not affected. The above products are not affected by the vulnerability.
Opyn will communicate with NBSP; &Nbsp; immediately after the above measures are implemented; Trail of Bits developed a white-hat patch that allows Opyn's never-repaid vault to remove 439,170 USDC collateral and return it to the seller.
In short, because Opyn is a decentralized product, the protocol cannot be shut down. The team will reduce losses and resolve the issue in a variety of ways, including buying more put options to prevent further attacks, canceling the ability to sell put options, and liquidating existing put sellers to ensure their collateral is secure.
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