Solana DeFi avoids meltdown as Wormhole loss replaced

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Jump Cryp­to announced that it replaced 120,000 ETH Fri­day morn­ing Asia time to its cross-chain bridge Worm­hole after a US$325 mil­lion exploit left wrapped Ether (wETH) in the Solana ecosys­tem unbacked.

Fast facts

  • The hack­er was able to exploit Solana’s ver­i­fi­ca­tion sys­tem to mint 120,000 wETH, and use it to fun­nel at least 93,750 ETH out of Wormhole’s smart con­tract into the Ethereum ecosystem.
  • With­out the Worm­hole par­ent company’s move to replace the miss­ing funds, the exist­ing wETH cir­cu­lat­ing in Solana’s decen­tral­ized finance (DeFi) ecosys­tem would have remained unbacked, mak­ing them prac­ti­cal­ly worthless.
  • Wormhole’s cross-chain bridge allows users to lock exist­ing assets in oth­er blockchains to use in Solana’s ecosys­tem for pur­pos­es such as collateral.
  • Worm­hole has since patched the vul­ner­a­bil­i­ty and offered the hack­er a US$10 mil­lion white­hack agree­ment to return the funds and reveal details of the exploit, but the remain­ing 93,750 ETH in the perpetrator’s wal­let address sug­gests that a deal has not tak­en place.



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