Hacks on DeFi platforms have become a common occurrence in recent months. Hence, it is almost nothing unusual when a DeFi platform is hacked. However, a DeFi platform on the EOS blockchain is now a victim of another DeFi hack. It is the first in the history of the blockchain. EOS-built, pizza DeFi, was hacked with the hackers making away with more than $6m user funds.
The Details Of The Hack
Per a Twitter announcement of the hack by the Pizza DeFi platform states that ‘itsspiderman’ (the hacker) manipulated the platform’s security to mint limitless Tripool tokens. Then, he deposited those tokens as collateral on the platform.
12/8, 8pm, hacker itsspiderman used exploit in eCurve to mint infinite Tripool tokens and deposit as collateral in PIZZA platform, drained all valuable assets. PIZZA losses $5 millions worth of tokens. We are working with slowmist, BPs, and other projects to manage to retrieve
— Recover+ (@EOSRecover) December 9, 2021
The hacker leveraged the limitless Tripool tokens to create over-collateralized positions, convert them to tangible digital assets, then withdraw them into his wallet. The DeFi platform estimated that the hacker must have stolen at least $6m worth of tokens. Pizza has affirmed that they would recover the stolen funds even though they didn’t disclose the means with which they would recover the funds.
If they are successful, it would be a first in the industry. Even though Polychain DeFi recovered the funds stolen from their platform, they were successful because the hacker intended to return those funds and not the efforts of the Polychain DeFi that resulted in the recovery of the funds.
Is Recovery Genuinely Possible?
The stolen funds from the Polychain DeFi hack were higher than this Pizza DeFi hack. Hence, the Polychain hacker found it more challenging to move the funds around. However, the pizza DeFi hacker has successfully transferred the stolen amount into his wallet. So, he can access the funds and move them around as it pleases him.
Some crypto stakeholders are already lending a helping hand to pizza DeFi. One of them is SlowMist blockchain security which has promised to assist the EOS-built DeFi platform in every way possible to recover the hacked funds.
Slingshot Finance Fundraising Yields $16m
In another DeFi-related news, Slingshot finance (a DeFi trading network) has announced the success of its series A funding round in which it raised $16m. Many VCs (firms and individuals) supported the funding round, notably K5 Global and Austin Rief. Slingshot chief executive, Clinton Bembry, stated that slingshot would use the funds raised to expand its business operations, especially the platform’s mobile app launch.
It also intends to support token swaps for more blockchains. Currently, the platform only supports two blockchains, with discussion to support a third still ongoing. Bembry also gave a timeline for the launch of the platform’s mobile app, saying it should be ready by June 2022.
Slingshot users currently use web-version for their trading activities. Bembry further disclosed that slingshot’s NFT platform is almost completed, with plans to launch by February 2022. The CEO clarified that the firm didn’t offer any board seat in this funding round as it was strictly an equity round.
The completion of this fund round means that slingshot has received about $18.5m through investors. The platform’s first seed funding round yielded about $3.2M.