Buy Bitcoin here
  • Crypto
    • Bitcoin News
    • Ethereum
    • Altcoin
    • Blockchain
    • Blockchain Companies
    • Cryptocurrency Exchanges
    • DeFi
    • Regulation
    • Cointelegraph news
    • Press Release
    • ICO News
      • ICOs Review
      • Upcoming ICOs
      • Scam
  • Education
    • CryptoTicker Starter Kit
    • Blockchain For Dummies
    • Crypto entrepreneurs
    • Free Resources
    • Events
    • Events Review
  • Prices
  • Exchange Comparison
  • Newsletter subscribe

  • News

    • Bitcoin News
    • Altcoin
    • Regulation
    • Blockchain Companies
    • Blockchain
    • Cryptocurrency Exchanges
  • News

    • Ethereum
    • Events Review
    • ICO News
    • Press Release
  • Education

    • CryptoTicker Starter Kit
    • Education
    • Blockchain For Dummies
    • Crypto entrepreneurs
    • Free Resources
    • Events
  • Cryptoticker

    • About us
    • Advertise
    • Media Kit
    • Submit your Press Release
    • Contact
    • Membership Login
  • Social Media

    Facebook Twitter Telegram Youtube
    • Newsletter
  • Crypto
    • Bitcoin News
    • Ethereum
    • Altcoin
    • Blockchain
    • Blockchain Companies
    • Cryptocurrency Exchanges
    • DeFi
    • Regulation
    • Cointelegraph news
    • Press Release
    • ICO News
      • ICOs Review
      • Upcoming ICOs
      • Scam
  • Education
    • CryptoTicker Starter Kit
    • Blockchain For Dummies
    • Crypto entrepreneurs
    • Free Resources
    • Events
    • Events Review
  • Prices
  • Exchange Comparison
Starter Kit Membership Search
English
English Deutsch
Menu
Search


Blockchain Ethereum

bZx Protocol Wasn’t Compromised, Team Reports Zero Losses

Posted On February 16, 2020 Taha Zafar 0

  • share 
  • share 
  • share 
  • tweet 
  • share 
  • share 

Earlier today, reports emerged that bZx – the eighth largest DeFi protocol by Total Value Locked (TVL) was compromised and a significant amount of Ethereum (ETH) contained was lost. The bZx protocol powered Fulcrum trading platform was frozen for further activity (except for lending and unlending) and the team announced that they are investigating the matter.

However, it is important to realize the fact that while the protocol was exploited, it wasn’t “hacked” or “compromised” in any other way. The smart contract code (Fulcrum Perpetual Short ETH-WBTC) functioned as intended, it was however a “well thought out manipulation”. The price of WBTC was manipulated, using loans given by the platform, to profit later from a short position.

0/ The DeFi Score team @ConsenSysCodefi is tracking the recent @bzxHQ vulnerability. Details are still emerging, but it looks like it wasn’t a smart contract hack, but a manipulation of the @UniswapExchange market that bZX uses as an oracle.https://t.co/1LRp3xfuK6— Jordan Lyall – @ ETHDenver (@JordanLyall) February 15, 2020

What’s The bZx Protocol?

Launched in 2018 on Ethereum blockchain, bZx Protocol is a Decentralized Finance (DeFi) product which allows users to lend and trade, using margin and leverage. Its trustless and permission-less in nature. The protocol supports ETH, DAI, USDC, KNC, LINK, REP, WBTC and ZRX. Its native governance token is BZRX.

What Actually Happened On bZx?

The following information has been taken from the bZx Discord. The rogue actor first took out a 10,000 ETH ($2.7M) flash loan from dYdX (another DeFi protocol). Then invested 5,000 ETH in Compound (DeFi) and 5,000 ETH in bZx, before proceeding to borrow 112 WBTC from Compound, which was then used to short WBTC on bZx with 50/50 of the initially borrowed 10,000 ETH. The rogue actor then dumped 112 BTC on Kyber Uniswap to push down the price and profit from the short position. Pays back the original loan of 10,000 ETH to dYdX (the original contract is reported to have 1M ETH in Compound and 650K WBTC debt).

From bzx discord pic.twitter.com/D0BBPJHQtr— Kalpesh from cryptostoic.com (@KalpeshEm) February 15, 2020

The rogue actor was earlier reported to have made 350K USD profit, however bZx team reported that the determination of the actual loss is not possible at this time because of the comprehensive and complex nature of the transaction and manipulation vector.

1/ Due to the complexity of the transaction, providing a comprehensive accounting of the losses will require additional time. This was not a simple Uniswap attack, and we do not use Uniswap as an oracle.— bZx (@bzxHQ) February 15, 2020

All Funds Are Safe, No Lender Affected

bZx team announced that they are working on a fix (contract upgrade) after the exploit and will deploy it soon to secure the protocol against such attacks in the future. The Fulcrum network will be back online soon.

6/ We are adding additional measures to ensure that this does not happen again, which will be documented in the post-mortem. Fulcrum will be coming back online 10:30pm MST. Thank you for your patience and your support. It means so much to us.— bZx (@bzxHQ) February 15, 2020

It was also reported that all users have zero losses. Since, from the perspective of the protocol, someone took out a loan, which is like any other. There is currently 600K WBTC left as collateral by the rough actor, which will be used by bZx team to stream interest and provide exit liquidity to existing iETH holders.

Funds are SAFU:

1/*All users have ZERO losses*. Last night there was a widely reported attack that took place against our protocol. From the perspective of the protocol, someone simply took out a loan. From the perspective of the lender, this loan is like any other.— bZx (@bzxHQ) February 15, 2020

The bZx protocol’s official twitter account further announced that no lender will be affected by the attack so as long as the borrowing is permanent and the borrower is ensured to pay interest (currently paying high interest to lenders), the lending pool will continue to remain healthy.

2/ The liquidity conditions for ETH lenders is exactly the same as for any other pool. The loan pays interest just like any other loan. In fact, it is currently paying lenders a very high interest rate. As long as it is a permanent borrower, it is a great boon to lenders.— bZx (@bzxHQ) February 15, 2020

  • share 
  • share 
  • share 
  • tweet 
  • share 
  • share 

It is super easy to buy Ethereum. Just take a look at our exchange comparison!

 

 

Follow us on Social Media and subscribe to our free crypto newsletter!

@Telegram
@Instagram
@Twitter 
@TikTok
@Facebook

Diskutiere mit uns!

About Trading @CT Trader
About Crypto in general @CT Inside

This post may contain promotional links that help us fund the site. When you click on the links, we receive a commission - but the prices do not change for you! :)

Disclaimer: The authors of this website may have invested in crypto currencies themselves. They are not financial advisors and only express their opinions. Anyone considering investing in crypto currencies should be well informed about these high-risk assets.

Trading with financial products, especially with CFDs involves a high level of risk and is therefore not suitable for security-conscious investors. CFDs are complex instruments and carry a high risk of losing money quickly through leverage. Be aware that most private Investors lose money, if they decide to trade CFDs. Any type of trading and speculation in financial products that can produce an unusually high return is also associated with increased risk to lose money. Note that past gains are no guarantee of positive results in the future. 

#decentralized finance (defi)#Ethereum#SAFU



You might also like

Blockchain Crypto DeFi DEX Ethereum Uniswap Yield Farming

What Is DeFi? – A Beginner’s Guide To 5 Core DeFi Protocols
January 19, 2021
Bitcoin Crypto Ethereum TradingView XRP

Top 3 Price Prediction Bitcoin, Ethereum, Ripple: BTC aims for $53,000 if this level breaks
January 18, 2021
Bitcoin News Crypto Crypto entrepreneurs Education

EXCUSES? TOP 3 reasons used by people who DON’T BUY Cryptocurrencies
January 17, 2021

More from Blockchain

Cryptocurrency Nostalgia: These Five Ancient Coins From ‘17 Are Showing Signs Of Life
Posted On January 26, 2021 Taha Zafar 0

For the cryptocurrency investors, the end of ‘17 and beginning of ’18 has been the best so far. As …

Cryptocurrency Investments: Top 3 10X-25X Asymmetrical Opportunities
Posted On January 25, 2021 Taha Zafar 0

Cryptocurrency investments are undoubtedly highly lucrative and rewarding, in a relatively short period of time. However, the ROI might be …

Kyber Protocol 3.0 To Introduce Complete Overhaul: Purpose-Driven Liquidity Protocols, Dynamic Market Making And Gas Optimizations
Posted On January 24, 2021 Taha Zafar 0

Kyber Protocol - the popular DeFi liquidity provider and aggregator announced it’s plans to introduce the third iteration of the …

In order to support and motivate the CryptoTicker team, especially in times of Corona, to continue to deliver good content, we would like to ask you to donate a small amount. Independent journalism can only survive if we stick together as a society. Thank you


  • Top Broker

    Bybit
    bybit
    Review · Visit
    Plus500
    Plus500
    Review · Visit

    Top Exchanges

    Kraken
    Kraken
    Review
    Coinbase
    Coinbase
    Review · Visit
  • Newsletter subscription




  • News

    • Bitcoin News
    • Altcoin
    • Regulation
    • Blockchain Companies
    • Blockchain
    • Cryptocurrency Exchanges
  • News

    • Ethereum
    • Events Review
    • ICO News
    • Press Release
  • Education

    • CryptoTicker Starter Kit
    • Education
    • Blockchain For Dummies
    • Crypto entrepreneurs
    • Free Resources
    • Events
  • Cryptoticker

    • About us
    • Advertise
    • Media Kit
    • Submit your Press Release
    • Contact
    • Membership Login
  • Social Media












    Newsletter


  • Imprint
  • Privacy Policy
  • Non-liability Disclaimer
©2021 CryptoTicker

Share

Share stories you like to your friends