WOOFi is offering a 10% bounty to recover $8 million stolen in flash loan exploit.
The total value of assets locked on decentralized exchange (DEX) WOOFi fell nearly 20% to $45 million after it was confirmed to have been exploited through a flash loan attack.
hacking
Earlier today, WOOFi detailed how it was hacked in just 13 minutes.
The project described hackers assiduously manipulating synthetic pre-market making (sPMM) algorithms by orchestrating a series of flash loans.
The hacker took advantage of the platform’s low liquidity to borrow approximately 7.7 million WOO tokens along with other assets and dumped them on the platform, significantly disrupting the price of the WOO token.
This ploy resulted in a false valuation of the project’s native token, WOO, causing its price to plummet to almost zero.
Exploiting this price anomaly, the attacker quickly exchanged 10 million WOO tokens at minimal cost and repeated the process three times, resulting in a significant illicit profit of $8.75 million.
WOOFi said its transaction monitoring system, along with other security teams within the cryptocurrency community, detected these anomalies immediately. As a result, the platform’s Swap smart contract was quickly shut down to mitigate further losses and initiate a comprehensive investigation.
recovery efforts
WOOFi has disclosed its ongoing efforts to recover stolen funds from hackers. The project announced that it would offer a 10% bounty incentive to hackers if they act as white hat hackers.
Meanwhile, the project stated that other WOOFi contracts, including WOOFi Stake, Earn, and Pro, are unaffected and will remain fully functional.
WOOFi is also actively soliciting additional details about the exploit, offering a reward through Arkham Intelligence to individuals who provide relevant information.
“We aim to have WOOFi Swap fully operational again within the next two weeks. “This is the first time something like this has happened to us, and we will make sure it doesn’t happen again,” he added.
Following this incident, WOO fell 10% and is trading at $0.5315 at press time.