DeFi

DeFi users lose $10 million

Published

6 months ago

17 July, 2024

Just two years after patching a similar exploit, cross-chain Decentralized Finance The (DeFi) protocol Li.Fi has been hit by hackers again, this time losing nearly $10 million in cryptocurrency. The Li.Fi attack, which took place on July 16, 2024, targeted a vulnerability in the Li.Fi contract, allowing attackers to drain funds from unsuspecting users’ wallets.

It is not the first time Li.Fi has faced security issues. In March 2022, the protocol was hit with a similar exploit, raising concerns about the robustness of its security measures. The recent attack highlights the ongoing challenges DeFi protocols face in securing user funds and the importance of remaining vigilant in a rapidly evolving threat landscape.

Li.Fi hacked Source: X

Understanding the attack: How hackers exploited Li.Fi

According to a job On X, the attack was carried out by a user named Nick L. Franklin, exploiting a vulnerability called “call injection.” This vulnerability occurs when a function in a smart contract does not properly validate user input.

Li.Fi hacked Source: X

In the case of Li.Fi, attackers were able to inject a malicious function call that essentially tricked the contract into transferring users’ funds to an address controlled by the hacker.

The Li.Fi team identified a specific contract address (0x1231deb6f5749ef6ce6943a275a1d3e7486f4eae) used by the attackers and urged users to revoke trusts for this address to avoid further losses. The team also provided a list of additional addresses to revoke for those who had manually set infinite trusts:

0x341e94069f53234fE6DabeF707aD424830525715
0xDE1E598b81620773454588B85D6b5D4eEC32573e
0x24ca98fB6972F5eE05f0dB00595c7f68D9FaFd68

This essentially revokes the permission users have given Li.Fi to access their funds.

Li.Fi hacked Source: X

While the exact details of the exploit have not been fully disclosed, comments on social media suggest that the malicious actors targeted users who had previously granted Li.Fi “infinite approval” for their tokens. This essentially gives the protocol unlimited access to a user’s funds, a practice that is generally discouraged due to the inherent security risks.

Impact of the attack: Millions of dollars lost and DeFi’s reputation tarnished

The attack resulted in the loss of nearly $10 million worth of cryptocurrencies across various chains, including Ethereum (ETH), USD Coin (USDC), and Tether (USDT). While the exact number of users affected remains unclear, the incident has undoubtedly shaken confidence in Li.Fi and the broader DeFi ecosystem.

This latest exploit comes at a critical time for DeFi, which is already grappling with regulatory uncertainty and concerns about its overall security. The incident underscores the need for stricter development practices, rigorous audits, and a more proactive approach to DeFi protocol security.

Lessons Learned: How to Stay Safe in the DeFi Space

The Li.Fi To hack serves as a stark reminder of the risks inherent in DeFi. Here are some key takeaways for users:

Beware of infinite approvals: Avoid giving DeFi protocols “infinite approval” for your tokens. Opt for more granular permissions where possible.
Do your research before you invest: Always do thorough research on any DeFi protocol before investing your funds. Look for projects with a proven track record, rigorous security audits, and a transparent development team.
Stay informed : Stay informed about the latest security threats and vulnerabilities in the DeFi space.

What’s next for Li.Fi?

The Li.Fi team is currently investigating the attack and working on implementing security measures to prevent similar incidents in the future. They advised users to revoke approvals for the malicious contract address and refrain from interacting with Li.Fi-powered applications until further notice. In a post to X on July 17, Li.Fi wrote that the protocol is now fully operational again.

Li.Fi hacked Source: X

Li.Fi’s future remains uncertain. Restoring user trust will be a significant challenge, and the protocol will likely face increased scrutiny from regulators and security experts. Li.Fi’s ability to recover from this setback depends on its ability to demonstrably improve its security posture and regain the trust of the DeFi community.

The Evolving Threat Landscape in DeFi

The Li.Fi hack is a stark reminder that Challenge Protocols are prime targets for cybercriminals. As the value locked in DeFi continues to grow, so will the sophistication of attacks.

DeFi developers should prioritize security by employing rigorous code audits, implementing best practices, and collaborating with security researchers to identify and address potential vulnerabilities. Users, on the other hand, should exercise caution, conduct thorough research, and understand the inherent risks before investing in DeFi protocols.

The Li.Fi incident serves as a wake-up call for the entire DeFi ecosystem. Only through a collaborative effort that prioritizes security and user protection can DeFi become a truly viable and trustworthy financial alternative.

Fuente

DeFi

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Published

6 months ago

29 July, 2024

CoinFlix Staff

If You Missed BONK and PEPE This Year, This Viral New Crypto Might Be Your Salvation

Bonk and Pepe appear set to net new investors 10x to 100x returns over the next 12 months. However, cryptocurrencies in the DeFi play-to-earn gaming sector could offer even greater returns. As August approaches, Rollblock is emerging as a standout DeFi play-to-earn gem with the potential to 100x-1000x gains in the fourth quarter and beyond.

The project features an innovative revenue sharing model and exceptional accessibility, attracting players and investors. Additionally, Rollblock’s extensive game library of over 150 titles and enhanced sports betting are further driving excitement for the platform. Cryptocurrency analysts are expecting a sudden surge in demand. 800% a push for Rollblock from the beginning of September.

Bonk remains strong despite market fluctuations

While most well-known cryptocurrencies struggled throughout July, Bonk remained strong. As one of the highest-grossing meme cryptocurrencies of 2024, Bonk rose over 24% in July, while most cryptocurrencies experienced negative fluctuations.

Investors looking to add a relatively safe memecoin to their portfolio should consider Bonk. While Bonk is unlikely to generate explosive gains of 250x to 1,000x from here on out, Bonk could still theoretically provide returns in the 20x to 100x range.

Pepe should see a big rise in the next bull run

Alongside Bonk, Pepe has yet to go through a bull run. This means that there are still substantial gains to be made from Pepe over the next 12 months.

Pepe is down 4% in 30 days, but that shouldn’t worry Pepe investors in 2024. Experts believe Pepe’s best days are still ahead, with crypto analysts predicting a 10x to 50x surge in the next election cycle around November.

In the long term, Pepe could surpass the 100x mark for today’s investors. However, Pepe is a memecoin, and one should exercise caution when investing in purely speculative assets that have no utility.

Rollblock’s Unprecedented Hype Potential Could Push It Past 100x Valuation in Q4

Rollblock is a GambleFi Play-to-Earn token that integrates centralized and decentralized gambling on a single platform. By allowing players to earn rewards through active participation and gameplay, the platform creates a compelling incentive structure that appeals to both casual and competitive players.

With its cutting-edge blockchain technology, Rollblock offers top-notch security that keeps bets and transactions on the platform secure. The platform’s lack of KYC mandates appeals to both users who value anonymity and security.

Rollblock’s revenue sharing model, which allocates up to 30% of casino revenue to RBLK token holders, is a major draw for investors. The model involves burning half of the repurchased tokens and distributing the other half to stakers, increasing the token’s value and encouraging long-term investment.

The platform is also constantly evolving thanks to user feedback which has enabled updates such as the upcoming sports betting feature within the platform’s casino. This addition will complement Rollblock’s extensive game library of over 150 titles, ranging from traditional poker to innovative blockchain-based games.

RBLK is expected to emerge as one of the leading DeFi tokens in 2024. With a price of $0.0172 with impressive growth potential and over 140 million tokens sold recently, Rollblock is on track to enter the top 100 cryptocurrencies by Q4, making today a lucrative time to buy RBLK tokens.

Discover the exciting opportunities of the Rollblock (RBLK) presale today!

Website: https://presale.rollblock.io/

Social networks: https://linktr.ee/rollblockcasino

No spam, no lies, only insights. You can unsubscribe at any time.

Fuente

DeFi

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Published

6 months ago

29 July, 2024

CoinFlix Staff

Cryptocurrency sector is experiencing ‘most misjudged moment’ since 2020, says venture capitalist Arthur Cheong

Veteran cryptocurrency investor Arthur Cheong believes the digital asset sector offers long-term holders a golden opportunity.

Cheong, the founder of DeFiance Capital, tell His 171,700 followers on social media platform X indicate that he believes decentralized finance (DeFi) is hugely undervalued.

According to Cheong, DeFi projects are innovating at a rapid pace and leaving traditional financial (TradFi) companies in the dust.

“It’s been a long time since I’ve been this excited about the risk/reward and potential upside of DeFi. This is probably the most misjudged moment since the pre-DeFi summer of 2020, with extremely promising prospects.

I see opportunities not only in OG (original) DeFi, but also in some newer projects that are evolving rapidly and growing at a pace that fintech startups will do anything to match.

The veteran investor also believes that crypto is now here to stay following recent launch from the Ethereum spot market (ETH) exchange-traded funds (ETFs) last week.

“Overall, the floodgates are open and there is no turning back. TradFi asset managers will continue to launch new crypto products because, guess what: there is huge demand for them!”

I expect them to launch actively managed crypto ETFs [in the] coming years. ”

Earlier this month, Cheong laid that it might be a bad strategy for cryptocurrencies to seek mass adoption, believing that digital assets are designed to disrupt several key financial sectors.

“I think we should accept that cryptocurrencies may not be suited for mass adoption like Web2, but rather are optimized for some narrow but very high-impact use cases like stateless global money, cross-border payments, and decentralized finance.

Chasing mass adoption of normies may be chasing the wrong Grail from the start.

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