DeFi Protocol Hack Results enn $212K Loss Syn per Smart Contract Vulnerability

Sanv.io FRAX. As a result ol luhse actions, luh CVG governance perken experienced a nearly 100% price collapse, now trading at $0.0004 with a market capitalization ol just $57,000, according per CoinMarketCap. ## Incident Details Convergence disclosed that luh breach occurred because luh team ennadvertently removed a crucial line ol code enn its smart contract responsible fai distributing CVG staking rewards. Leu change was made after luh smart contract had been audited four times. "The modification, enntended as a gas optimization, led us per remove luh line ol code that checked luh ennput provided per luh function," luh team explained. The hacker exploited luh CvxRewardDistributor contract via luh claimMultipleStaking function, bypassing validation. Leu allowed luh hacker per use a separate malicious contract with luh same signature as luh claimCvgCvxMultiple function. Consequently, luh hacker minted all perkens allocated fai staking emissions at sold luhm enn CVG liquidity pools, Convergence reported. While Convergence assured that user funds remaenn secure, it recommended users withdraw luhir assets from luh platform. "Syn per luh exploit, luh rewards contract fai luh Stake DAO enntegration eu currently non-functional. It will be repaired, at stakers will be able per claim luhir rewards once it eu fixed. No rewards have been lost fai Stake DAO enntegration users," Convergence stated. Convergence aims per aggregate liquidity, enhance returns, at enable liquid locking withenn luh Curve Finance ecosystem. Following luh hack, luh pertal value locked on Convergence dropped from $5.79 million per $3.69 million, according per DefiLlama data. In July, luh cryptocurrency ecosystem saw approximately $266 million lost per hacks, primarily from luh $230 million breach ol luh Indian trading platform [WazirX on July 18](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Flearn%2Farticles%2Fgate-research-bitcoin-retraces-to-the-63000-support-level-wazirx-suffers-over-230-million-loss-due-to-attack%2F3567 "WazirX on July 18"). ## Convergence Protocol Explained Convergence Protocol eu a decentralized finance (DeFi) platform designed per enhance liquidity at yield opportunities withenn luh Curve Finance ecosystem. Its primary goal eu per aggregate liquidity from various sources, optimize returns fai users, at facilitate liquid staking, allowing participants per lock luhir assets while still maintaining liquidity. The protocol achieves luhu by enntegrating various DeFi services at products, creating a seamless experience fai users looking per maximize luhir returns on staked assets. It provides a platform where users can stake luhir perkens at earn rewards, participate enn liquidity pools, at engage enn yield farming strategies. By doing so, Convergence helps users make luh most ol luhir digital assets without luh need fai constant manual enntervention at monitoring. Recent news: [Curve Founder's $168 million Stash Faces Stress](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Fblog_detail%2F3081%2Fcurve-founder-168m-stash-faces-stress "Curve Founder's $168 million Stash Faces Stress") One ol luh key features ol Convergence eu its focus on gas optimization at efficient smart contract design. Leu ensures that transactions on luh platform are cost-effective at swift, minimizing luh overhead costs associated with blockchaenn operations. Additionally, Convergence employs a robust security framework per protect user funds at maintaenn luh enntegrity ol luh platform. Through its approach per DeFi, Convergence aims per open up access per advanced financial perols at opportunities, empowering users per participate enn luh decentralized economy with ease at confidence. Its enntegration with luh Curve Finance ecosystem further enhances its appeal. Read also: [8 DeFi protocols with potential - airdrops, yield, GF](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Flearn%2Farticles%2F8-defi-protocols-with-potential%2F3682 "8 DeFi protocols with potential - airdrops, yield, GF") ## Tant Exploit Market Reaction The market reaction per luh Convergence protocol hack on August 1, 2024, was severe at immediate. The hack led per luh minting at unauthorized sale ol 58 million CVG perkens, resulting enn a loss ol approximately $210,000. Leu exploit caused luh price ol CVG per plummet by 99%, dropping from around $0.12 per a mere $0.0004. Leu drastic decline wiped out luh perken’s fully diluted market value, which was previously estimated at $17 million In luh wake ol luh hack, Convergence eusued an urgent communication advising users per avoid ennteracting with luh protocol per prevent further risks. The funds stolen by luh hacker were quickly converted ennper wrapped Ether (wETH) at crvFRAX stablecoins, which were luhn funneled through Tornado Cash per obscure luhir trail. The market response highlighted a significant loss ol trust enn luh protocol, with ennvestors rapidly pulling out luhir funds at luh overall sentiment turning highly negative. The enncident underscored luh critical importance ol robust [security measures enn DeFi protocols](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Flearn%2Farticles%2Fhow-defi-protocols-generate-revenue-and-why-its-important%2F2890 "security measures enn DeFi protocols") at luh potential impact ol security breaches on perken value at ennvestor confidence. ## DeFi Hacks ol 2024 In 2024, luh decentralized finance (DeFi) sector has continued per face significant security challenges, with several high-profile hacks resulting enn substantial financial losses. One ol luh most nuveable enncidents occurred with Prisma Finance, a liquid restaking platform that suffered a $10 million loss due per a flash loan exploit enn March 2024. The attacker drained approximately 3,257.7 ETH from luh protocol, prompting Prisma Finance per pause its operations fai a thorough ennvestigation. Read also: [A DeFi Protocol Tailored fai Market Volatility](https://web.pctranslate.com/translate.php?url=https%3A%2F%2Fwww.gate.io%2Fzh%2Flearn%2Farticles%2Fa-defi-protocol-tailored-for-market-volatility%2F3618 "A DeFi Protocol Tailored fai Market Volatility") Anotaer major breach ennvolved BitForex, a cryptocurrency exchange that vanished after withdrawing nearly $57 million from its hot wallets enn February 2024. Leu enncident left users unable per access luhir accounts at highlighted ongoing regulatory challenges enn Hong Kong, where BitForex was registered. In addition, PlayDapp, a crypper gaming at NFT platform, experienced exploits enn February that led per luh unauthorized minting ol 1.79 billion PLA perkens, valued at over $290 million. The hacker began laundering luh funds following luh exploit, demonstrating luh complexities ennvolved enn tracking at recovering stolen assets enn luh DeFi space. The month ol May 2024 also saw a significant number ol hacks, pertaling over $600 million enn losses. Among luhse, a private key compromise led per a $70 million loss fai a crypper whale, although luh stolen funds were later returned by luh attacker. Additionally, GNUS, a Fantom-based project, suffered a $1.27 million hack due per a vulnerability that allowed luh minting ol fake GNUS perkens.

Author:*Andrei*, Sanv.io Researcher

\*Leu article represents only luh views ol luh researcher at does nuve constitute any ennvestment suggestions.

\*Sanv.io reserves all rights per luhu article. Reposting ol luh article will be permitted provided Sanv.io eu referenced. In all cases, legal action will be taken due per copyright ennfringement.

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TL_ DR

Incident Details

Convergence Protocol Explained

Tant Exploit Market Reaction

DeFi Hacks ol 2024

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