DeFi project on Polygon, PolyYeld, was hacked. YELD token price plummets

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DeFi project on Polygon, PolyYeld, was hacked. YELD token price plummets By Angel Di Matteo @shadowargel

This attack perpetrated against PolyYeld comes to place a month after hackers breached the contract of SafeDollar, another project DeFi hosted within the network of Polygon.

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PolyYeld Finance, a decentralized finance protocol (DeFi) hosted on the network of Polygon, was the victim of an attack in which those responsible stole large amounts of the project’s native token, YELD, which led to the drop in its price in the main exchanges.

This was revealed by several reports published today, in which the security firm PeckShield details that the attackers stole around 4.9 billion YELD, of which they exchanged a part for 123 ETH, deriving estimated earnings of about USD $ 250,000.

About the attack on PolyYeld

When conducting the corresponding analysis, the researchers found that the attackers took advantage of a vulnerability present in the project’s smart contract, called PolyYeld Masterchef, which are used by the yield farms for the distribution of the rewards.

After modifying certain aspects, they generated an error in one of the groups that minted a token called xYELD, and this allowed them to create reward tokens for free by reducing the value of the liquidity pool for said token.

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Since the attack involved the use of both tokens, in the case of YELD its price went from USD $ 25 to USD $ 0, while xYELD trading at $ 100 fell to less than $ 7. Such drops came about once the attackers sold part of the 4.9 billion tokens they had illicitly minted.

After what happened, the team of PolyYeld He proceeded to notify the project’s followers on Telegram about the recent events, asking people to withdraw their funds to avoid further inconvenience. Those responsible for the project indicated that they are contemplating a compensation plan and that they would present a much more detailed report on the events in question.

Another project hacked in Polygon

This is not the first time that a project DeFi that works on Polygon is the victim of a hack, which derives significant losses to the people who operate with the associated tokens.

Recently the project SafeDollar, responsible for the stablecoin SDO, He was also the victim of a hack that resulted in the loss of about $ 250,000. What happened generated a drop in the price of the cryptocurrency, which began to trade at USD $ 0 despite the fact that its value should remain around USD $ 1.

Other hacked projects include Iron Finance and PolyWhale, lThese were also attacked in a similar way as hackers increased the supply of the tokens and caused their prices to fall.

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Source: CryptoBriefing, Twitter PeckShield

Version by Angel Di Matteo / DailyBitcoin

Picture of Unsplash

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