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Polygon’s Native Stablecoin Protocol QiDAO Sees Exploit Worth $13M

By:
Varuni Trivedi
Updated: Feb 8, 2022, 18:39 UTC

Polygon stablecoin QiDAO was exploited for $13 million on Superfluid vested contract leading to a 65% drop in the price of QI token.

FXempire, Polygon, Crypto, Solana

Another major protocol suffered an exploit worth close to $13 million just a week after the DeFi’s second-biggest exploit ever, on Solana was seen.

On February 8, Solana native stablecoin protocol QiDAO faced an exploit on its Superfluid vesting contract leading to a 65% drop in the price of the governance token QI. 

Polygon’s Protocol Faces Breach

QiDao is a self-sustaining, community-governed protocol that allows users to borrow stablecoins interest-free against crypto assets used as collateral.

The platform took to Twitter on Tuesday to shed light on the exploit on the Superfluid vesting contract. They have assured users that for now funds are safe and no funds from QiDAO have been affected. 

Superfluid also confirmed the exploit on QiDAO and said that for now they are investigating the situation and users will be updated about the same. However, as a precautionary measure, QiDAO had temporarily paused its bridge and is resolving the issue.

The protocol enables users to move assets on-chain in a constant flow in real-time from one wallet to another. 

Over $13 Million Hacked

As per the released information, the hackers were successful in stealing $20 million worth of cryptocurrencies, including 24 wETH, 562,000 USDC, 44 SDT, 1.5 million MOCA, 23,000 STACK, and nearly 40,000 sdam3CRV.

However, according to crypto analytics group SlowMist’s fund tracker, only $13 million worth of cryptocurrencies were stolen from the platform.

While conclusive reports about the attack are still awaited early investigations point out that most of the hacked funds belonged to some of the early backers in the project and also include team vested tokens.

That said, soon after the hack, the price of QI fell from $1.24 to $0.18 while its fully diluted market cap saw a 22.08% fall in the last 24-hours.

On February 2, the Wormhole network used to bridge the ETH competitor, Solona, with other DeFi projects, lost about $320 million in cryptocurrency funds after a novel vulnerability was exploited. The QiDAO exploit comes just a week after the Solana exploit. 

About the Author

A Journalism post-graduate with a keen interest in emerging markets across South East Asia, Varuni’s interest lies in the Blockchain technology. As a financial journalist, she covers metric and data-driven stories with a tinge of commentary, and strongly believes in HODLing.

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