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Zunami Protocol Issues Warning as $2.1 Million Attack Hits Zunami Ether and Zunami USD Stablecoins

CryptoZunami Protocol Issues Warning as $2.1 Million Attack Hits Zunami Ether and Zunami USD Stablecoins

The Zunami Protocol, a significant player in the decentralized finance (DeFi) sector, recently issued a cautionary advisory to its users, urging them not to acquire its Zunami Ether (zETH) and Zunami USD (UZD) stablecoins. This advisory followed a troubling incident within the protocol’s ecosystem—an attack on its “zStables” pools hosted on the Curve Finance platform.

The critical moment occurred on August 13th when the protocol publicly acknowledged the attack, referred to as “X,” via a post on its Twitter account. They confirmed that the stablecoin pools had been targeted but reassured users that the collateral’s security remained intact. They initiated a thorough investigation to uncover potential vulnerabilities exploited during the attack.

A deeper analysis of the situation reveals a significant financial loss for the protocol. PeckShield, a respected blockchain security firm, estimated the theft at a staggering $2.1 million. PeckShield attributed the breach to a critical issue involving price manipulation, which enabled the attacker to siphon off this substantial amount. Ironblocks, another reputable player in blockchain security, supported this assessment, further confirming the scale of the attack.

The security community reacted swiftly to this incident. PeckShield was one of the first to detect the breach on Curve Finance, pinpointing it on August 13th at 10:47 UTC. This initial identification was later confirmed when the protocol itself acknowledged the incident approximately 20 minutes later. The collaborative response between security firms and the protocol underscores the cooperative nature of the blockchain community in addressing such challenges.

The Zunami Protocol, known as a decentralized revenue aggregator, allows users to engage in yield staking using stablecoins. A crucial part of its ecosystem operates within the Curve platform. Regrettably, this attack had a significant impact on two essential elements of Zunami’s ecosystem—the Zunami USD stablecoin and the Zunami Ether.

By FCCT Editorial Team

Disclaimer: The views expressed in this article are independent views solely of the author(s) expressed in their private capacity.

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