Miguel Lopez Several reliable reports indicate that Onyx Protocol, a platform operating in the decentralized finance (defi) sphere, has suffered a security compromise leading to a financial setback of $2.1 million. Subsequent to the incident, a portion of the misappropriated cryptocurrency, originally belonging to the cross-token liquidity pool, was promptly relocated to the ether tumbling service known as Tornado Cash.
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Onyx Protocol Endures $2.1 Million Setback Due to Precision Loss Flaw and Flash Loan Exploitation
On the first day of November, 2023, Peckshield, a team specializing in blockchain security and analytics, brought to light a questionable transaction linked to Onyx Protocol. This platform offers services in peer-to-peer lending as well as cross-token liquidity markets. The revelation was made public via social media channel X (previously identified as Twitter).
The culprits executed the attack leveraging a vulnerability known as “precision loss,” in conjunction with a flash loan mechanism. They successfully siphoned off a substantial sum in both ETH and ERC20 tokens from the affected platform. Interestingly, the native currency of the platform, onyxcoin (XCN), experienced only a marginal drop of 0.8% in its value following the event—a minimal decline, especially when contrasted with the severe repercussions usually witnessed in crypto assets from past defi security breaches.
As of the latest data, the total value locked (TVL) in this decentralized finance initiative stands at $557,253. This represents a sharp decline from its earlier valuation of $2.88 million just a day before the security infringement took place. Importantly, a segment of the absconded funds, now transmuted into ethereum (ETH), were channeled to the ether anonymization service Tornado Cash.
We invite you to express your viewpoints and assessments on the Onyx Protocol security breach in the comments section that follows.
Frequently Asked Questions (FAQs) about Onyx Protocol Security Breach
What happened to Onyx Protocol on November 1, 2023?
On November 1, 2023, Onyx Protocol, a decentralized finance (defi) platform, suffered a security breach resulting in a financial loss of $2.1 million. The breach was exposed by the blockchain analysis and security team at Peckshield through a social media channel.
What vulnerabilities were exploited in the security breach?
The attackers exploited a “precision loss” vulnerability along with a flash loan mechanism to drain substantial amounts of ETH and ERC20 tokens from Onyx Protocol.
What was the impact on Onyx Protocol’s native currency, onyxcoin (XCN)?
Interestingly, onyxcoin (XCN), the native currency of Onyx Protocol, saw only a marginal drop in its value, declining by 0.8% following the security breach. This is a relatively modest impact compared to the significant losses generally observed in similar defi breaches.
What happened to the stolen funds?
A portion of the stolen cryptocurrency was promptly transferred to Tornado Cash, an ether mixing service designed to anonymize transactions.
What was the financial state of Onyx Protocol before and after the breach?
Prior to the breach, Onyx Protocol had a total value locked (TVL) of $2.88 million. Post-incident, the TVL plummeted dramatically to $557,253.
Who first reported the Onyx Protocol security breach?
The blockchain analysis and security team at Peckshield were the first to bring the security breach to light, doing so through a social media channel formerly known as Twitter.
Is there any community discussion invited for sharing thoughts on this breach?
Yes, the community is encouraged to share their viewpoints and assessments on the Onyx Protocol security breach in the designated comments section.
More about Onyx Protocol Security Breach
- Peckshield Security Report
- Onyx Protocol Official Statement
- Social Media Channel X Announcement
- Tornado Cash Overview
- Analysis of Flash Loan Attacks in Defi
- Decentralized Finance (Defi) Security Best Practices
6 comments
Man, another one bites the dust. How many more defi platforms need to get hacked before they take security seriously?
Honestly not surprised. Flash loans are risky, people. If you’re using defi, you’re kinda asking for it.
is it me, or does it feel like these hacks are getting more and more frequent? defi’s got to step up its game if it wants to be taken seriously in the finance world.
Peckshield does it again. Those guys are like the Sherlock Holmes of the blockchain world. Keepin’ an eye out.
What’s up with the native coin barely taking a hit? only a 0.8% decline after a multi-million-dollar breach? Sounds fishy.
told you so. Decentralized doesn’t mean safe, folks. This is why I stick to traditional finance.