WOOFi offers 10% bounty in race to recover $8 million stolen in flash loan exploit

The full label of assets locked on the decentralized exchange (DEX) WOOFi plunged by nearly 20% to $45 million after it confirmed it was exploited thru a flashloan assault.

The hack

Earlier at the unique time, WOOFi detailed the contrivance in which it fell sufferer to a hacking episode inner 13 minutes.

The project defined that a hacker diligently manipulated its Synthetic Proactive Market Making (sPMM) algorithm by orchestrating a assortment of flash loans.

Leveraging the platform’s low liquidity, the hacker severely disrupted the label of the WOO token by borrowing roughly 7.7 million WOO tokens alongside diverse assets and dumped them on the platform.

This maneuver precipitated an untrue valuation of the project’s native token, WOO, plummeting its label nearly to zero.

Exploiting this pricing anomaly, the attacker impulsively exchanged 10 million WOO tokens at minimal prices and repeated this course of three times to accrue sizable illicit earnings of $8.75 million.

WOOFi said its transaction monitoring gadget, alongside diverse vigilant security groups for the length of the crypto community, promptly detected this anomaly. Consequently, the platform’s Swap’s natty contracts were impulsively suspended to mitigate further losses and instigate a entire investigation.

Recovery efforts

WOOFi has disclosed ongoing efforts to reclaim the stolen funds from the hacker. The project has announced a 10% bounty incentive for the hacker, ought to they operate as a white hat.

Meanwhile, the project mentioned that diverse WOOFi contracts, along with WOOFi Stake, Earn, and Pro, were unaffected and remain fully helpful.

In addition to, WOOFi is actively soliciting further vital parts in relation to the exploit, providing a bounty thru Arkham Intelligence for people who furnish pertinent knowledge.

“We intention to bear WOOFi Swap fully helpful as soon as more for the length of the following two weeks. That is the first time an incident luxuriate in this has came about to us, and we desire to fetch certain it doesn’t happen as soon as more,” It added.

Following the incident, WOO is down 10% and trades at $0.5315 as of press time.