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Cover Protocol Is The Latest DeFi Project To Suffer An Attack

Report said that Cover staking protocol, the peer-to-peer coverage market, is the latest DeFi project to suffer an attack.

It has been reported that the suspected hacker has exploited the Cover staking protocol by inflating the token supply by printing over 40 quintillions of “coins.”

In a surprising move, the suspected attacker returned the funds with a note saying:

“Next time, take care of your own shit.”

However, in the initial exploit, the attacker liquidated over 11,700 coins on the 1inch decentralized exchange aggregator after inflating the token supply according to data from the Ethereum wallet explorer Nansen.

Top $COVER transactions: — Nansen (@nansen_ai) December 28, 2020

The report said that Cover Protocol released addressed the incident in a message posted on its Discord group by saying:

“The Blacksmith farming contract has been exploited to mint infinite $COVER tokens. We have restricted minting access to the farming contract in order to stop the attacker. If you are providing liquidity for $COVER token (uniswap or sushiswap) please remove it immediately.”

Likewise, the Cover Protocol team stated that the issue only affected the token supply with funds held in “claim/noclaim” pools still safe. The project says it is investigating the incident.

This cover’s been blown. The Cover protocol suffered an infinite minting attack, causing its price to tank 97%. — Cointelegraph (@Cointelegraph) December 28, 2020

The attack caused a massive decline in the COVER token price, falling by more than 97% while also eliciting negative comments from a cross-section of the crypto community on social media.

Back in November, Cover was one of the DeFi protocols to merge with Yearn.Finance.

Thus, this incident makes the Cover the latest DeFi project to suffer a malicious exploit in a year ridden with opportunistic profiteering attacks against numerous protocols.

Source: Cointelegraph



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