According to information released, a hacker has exploited a bug in the incentives smart contract of Cover Protocol, which allowed him to get away with 11,761 COVER tokens, worth $ 3.62 million at press time.
He successfully discovered a process that gave him COVER tokens as rewards, then he staked, unstaked, and restaked LP tokens in rapid succession.
The hacker has already sold his COVER tokens through six transactions on 1inch, the popular DEX aggregation protocol, selling 11,761 COVER tokens for WETH (Wrapped Ethereum) and WBTC (Wrapped Bitcoin). At press time, that sum amounted to $ 3.62 million.
Banteg, Yearn Finance’s core developer, commented on Twitter, saying that they are investigating the issue. Yearn Finance entered into a merger with Cover protocol on Nov.28.
The Exchange Binance, upon learning of the incident, froze Cover Protocol crypto trades at time, at the time when the price of the COVER token has taken a massive hit, dropping from $720 to $25 in a matter of hours, reaching -95%. The team has not made any official announcement regarding this incident as of yet.
This is yet another example of the slew of hacks in DeFi this year!
? The company responsible for the crypto has not yet officially commented on the incident.
The asset gradually recovered, and by the time of completion of this article, it has gone from $ 25.00 to $ 200.00.
