- Zunami Protocol lost 1,178 ETH ($2.16 million) in a flash loan attack.
- The attack involved manipulating StakeDAO price and destabilizing Zunami’s stablecoin.
- Zunami Protocol plans to compensate impacted users in USDT, USDC, and DAI.
The Zunami Protocol recently experienced a flash loan attack on August 13, 2023, leading to a substantial loss of 1,178 ETH, equivalent to roughly $2.16 million. The sophisticated assault entailed manipulating the StakeDAO (SDT) price on Sushiswap, destabilizing the balance of UZD, Zunami’s stablecoin. The protocol has published a detailed post-mortem analysis of the incident.
The post-mortem analysis revealed that the perpetrators utilized flash loans, a sophisticated method that facilitated swift escalation in the value of SDT and CRV tokens. This strategic manipulation paved the way for exploiting UZD and zETH emissions, enabling the culprits to siphon off liquidity from the UZD/FRAXBP and zETH/frxETH trading pairs.
The team at Zunami Protocol, the architects of the impacted DeFi platform, utilized their official communication networks to discuss the event. In an official announcement, they recognized the breach and verified that the financial damage surpassed $2 million.
The protocol has detailed their future roadmap to restore confidence within their community. The team is set to execute essential corrections, upgrade the omnipools and zStables, and conduct a comprehensive audit with a credible third-party firm for the forthcoming zStables V2 launch. They have also unequivocally stated their commitment to compensate the zStables collateral to the impacted token holders fully.
In their ongoing remediation initiatives, the Zunami Protocol team has confirmed to the community that the UZD and zETH collateral will be allocated to the holders just before the security breach. They underscored their dedication to ensuring equitable restitution for all impacted parties, irrespective of their participation in liquidity pools or the specific wallet addresses they hold.
Following the security breach, the Zunami Protocol team is diligently working on assessing account balances and preparing to disclose comprehensive information about the incident. They have also delineated their strategy to offer compensation in USDT, USDC, and DAI to the impacted users, expected to be executed within one to two weeks. Nonetheless, users must note that they will be required to initiate the claim process via the contract personally.
