A hacker exploited an “infinite mint glitch” and drained about $28 million worth of assets from cashio’s liquidity pools.
Solana is the fastest blockchain in the world and the fastest-growing ecosystem in crypto, with thousands of projects spanning DeFi, NFTs, Web3 and more also Solana adopts the DPoS consensus mechanism .That is to say, Solana does not verify transactions through the competition of miners’ computing power, but selects verifiers based on the number of pledged tokens, because each Stakeholder can vote for a delegator, This democratic mechanism allows users who hold a small amount of virtual currency to participate in voting.
Cashio is a Solana-native stablecoin made for the people.
Key Insights:
- Solana-backed stablecoin CASH suffered an exploit.
- Cashio Dollar is an algorithmic stablecoin backed by USDT-USDC LP tokens.
- Hacker siphoned million using an ‘infinite mint glitch.’
The total profit value: 52027994.22 USD (5000 million dollars). At present, Cashio has officially issued an announcement for users to suspend the use of the contract, and released a temporary patch to fix the vulnerability.
Attacker’s CASH token account：https://solscan.io/account/26rFraKwk3gurdLLzR2aU5Z2sGA4jJ4Nnr7QDECu5BAK
Attack transaction:
the attacker minted two billion CASH stablecoins and then swapped them for other paired assets (mostly other stablecoins) via the decentralized exchange Saber. Per Defi Llama data, the hacker drained about $28 million worth of liquidity from the exchange. Saber posted an update announcing that it had paused its CASH liquidity pools following the incident.
As a result of the exploit, CASH, whose value is supposed to be pegged to the U.S. dollar, has completely collapsed.
Saber, a platform that enables cross-chain liquidity exchange for stable pairs, posted an update announcing that it had paused its CASH liquidity pools following the incident.
Data from DeFi Llama highlighted that the total value locked of the protocol fell from $28.87 million to $622,404.
In an infinite mint glitch, a protocol is mistakenly designed to allow users to mint as many tokens as possible without providing any collateral. Once a hacker can mint unlimited tokens, they can sell them on the market, crushing the token’s price.
REF:
https://finance.yahoo.com/news/solana-backed-stablecoin-cashio-loses-180815946.html
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