Zunami Price Manipulation Hack Deeply Impacts Protocol and Losses $2.1 Million

Crypto News – In order to support the decentralized exchange (DEX) of stablecoins within Ethereum, Zunami Protocol, a yield farming aggregator for stablecoin staking, maintains its main “zStables” pool on Curve. The hacking attack on Curve naturally affected Zunami.

Zunami Price Manipulation Hack Deeply Impacts Protocol and Losses $2.1 Million

The decentralized finance (DeFi) platform Zunami Protocol reported on Sunday that its liquidity pool on Curve Finance had been targeted, resulting in a loss of more than $2.1 million. PeckShield and Ironblocks, two blockchain security companies, confirmed the hack.

Blockchain observers were familiar with the attack’s strategy. Ironblocks even detailed the hack on its X account.

The attacker took [a] flash loan from (the) balancer, then he added liquidity so he (would) be able to change the price significantly and started to trade in Zunami’s exchange. Then he removed the liquidity and changed the price, then he traded back and (returned) the flash loan and got 1,152 ETH to himself. Classic price manipulation,

Ironblocks

PeckShield Also Reported the Attack

In addition to identifying the Zunami attack, PeckShield, a rival blockchain analysis company that has been monitoring attacks on Curve, also it alerted the protocol on X about the attack.

Today’s hack leads to more than $2.1 million loss and there are two hack transactions involved. It is a price manipulation issue, which can be exploited by donation to incorrectly calculate the price.

Peckshield

The Zunami USD stablecoin (UZD) and Zunami Ether (zETH) prices both dropped drastically as a result of the hack, with the former collapsing completely (more than 99%) and the latter dropping to $206 in value.