The hackers found a vulnerability in the system of the decentralized liquidity provider Sushiswap and stole some of the commissions received during the day.
Holes in the Sushiswap protocol
The vulnerability in the system was discovered in the DIGG token of the Badger DAO protocol. The attacker used transactions that converted 0.05% of the DIGG / WBTC exchange fees. In total, he managed to steal 81 ETH in this way (about $ 103,842).
The hacker caught on a weak spot in the Sushiswap protocol through the Sushimaker smart contract component. Having created a new trading pair, he formed a DIGG / ETH pool with low liquidity. Due to the lack of a link to send the reward to the stakers, the cracker took all the commissions.
Sushimaker is an important automated maker and decentralized exchange (DEX). He is responsible for the distribution of commissions. Commissions for all transactions for all trading pairs on the platform are distributed among liquidity providers in SUSHI tokens.
The hacker used rugpull technology. Its essence is as follows: the attacker pumps a token created in a liquidity pool and then drastically withdrawn funds, leaving other liquidity providers at a loss.
Meanwhile, a cryptojournalist known on Twitter under the pseudonym rekt believes that the hacking was carried out using a different technology. According to him, he tried to contact the Sushiswap team about the hack.
“After a more detailed study, we found out that, despite the break-in, the losses have already been covered. What was considered a dire threat to the entire SushiSwap protocol turned out to be an amateur attempt to pick up food left over from others. ”
Market reaction
The SUSHI course practically did not react to the hack. The token is trading at 7.9.
Meanwhile, the DIGG / ETH pair has been hit hard. Over the past three days, the token rate has dropped significantly. After the hack, traders began to abruptly close positions, exacerbating the position of the coin in the market.
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