Lack of liquidity mitigated damages to BonqDAO exploit: Report
After amassing $120 million in tokens through an infinite minting glitch, hackers reportedly only cashed out around $1 million due to a lack of liquidity on BonqDAO. According to Blockchain security firm CertiK, the damage caused to decentralized protocol BonqDAO on Feb. 1 may have been much less than initially thought. As told by CertiK, the attacker first borrowed 100 million BEUR, a euro stablecoin, with less than $1,000 in collateral due to a lack of controls on the collateralization ratio. If users set the parameter to zero, then the platform defaults to returning the "maximum value of uint256," allowing an astronomical sum of loans to be issued. However, CertiK said that despite the attacker borrowing 100 million BEUR (around $120 million at the time of attack), the hacker only managed to withdraw around $1 million due to a lack of liquidity on the platform. Previously, blockchain security firms such as PeckSheild stated that around $120 million was lost during the ...