Decentralized finance platform Zunami Protocol has issued a cautionary advisory against the purchase of its Zunami Ether (zETH) and Zunami USD (UZD) stablecoins.
This move comes in the wake of a security breach that targeted the protocol’s “zStables” pools on Curve Finance.
On August 13th, Zunami Protocol officially acknowledged the attack on its stablecoin pools via a post on its Twitter account.
While ensuring the safety of collateral, the protocol has initiated a thorough investigation to assess the scope and impact of the potential exploit.
Blockchain security firm PeckShield has approximated the stolen amount to be more than $2.1 million from Zunami’s Curve Pool.
The breach is attributed to a price manipulation vulnerability, a sentiment shared by the security experts at Ironblocks, who arrived at a similar conclusion.
The initial detection of the exploit was made by PeckShield on August 13th at 10:47 UTC, with Zunami Protocol confirming the incident about 20 minutes later, underscoring the urgency and swiftness with which the situation unfolded.
READ MORE: Hacker’s Tether Address Blacklisted with Police and Cyber Support, Stolen Crypto Recovery Progresses
Zunami Protocol operates as a decentralized revenue aggregator, offering users the opportunity to yield stake stablecoins. The protocol’s major stablecoin pools are housed within the Curve platform.
The impact of the breach is notably seen on the Zunami USD stablecoin as well as Zunami Ether.
In response to the attack, the zETH and UZD Curve pools operated by Zunami have been prominently marked with red exclamation symbols on the Curve platform, serving as a visual indication of the compromised status.
Cointelegraph, seeking further insights, reached out to Zunami Protocol for commentary on the incident.
However, as of the time of reporting, a response from the protocol has not been received.
As Zunami Protocol grapples with the aftermath of this attack, the broader community is reminded of the ongoing security challenges facing decentralized finance platforms.
This event underscores the significance of robust security measures in the DeFi space to safeguard users’ funds and maintain the trust necessary for the ecosystem’s growth.
Other Stories:
Curve Finance Vows Reimbursement After $62 Million Hack
Former FTX CEO Sam Bankman-Fried’s Bail Revoked Over Witness Intimidation Allegations
