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Vulnerability in ParaSpace NFT Lending Protocol

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According to reports from the Web3 network security company Ancilia, the root cause of the attack on the NFT lending protocol ParaSpace occurred in the scaledBa

Vulnerability in ParaSpace NFT Lending Protocol

According to reports from the Web3 network security company Ancilia, the root cause of the attack on the NFT lending protocol ParaSpace occurred in the scaledBalanceOf() function of the contract 0xddde38696fbe5d11497d72d8801f651642d62353, which is used to calculate the user’s collateral through the supply() function. However, manipulating the number of APE tokens in the function getPooledApeByShares() allows scaledBalanceOf() to return a large value. Users can own a large amount of collateral and use it to borrow more assets.

Ancilia: The root cause of the ParaSpace attack occurred in the scaledBalanceOf() function of the 0xddde3 contract

Analysis based on this information:


Web3 network security company, Ancilia, recently reported that the attack on ParaSpace, an NFT lending protocol, was due to a vulnerability in the scaledBalanceOf() function of the contract 0xddde38696fbe5d11497d72d8801f651642d62353. This function calculates the user’s collateral through the supply() function, but attackers were able to manipulate the number of APE tokens in the function getPooledApeByShares() to return an inflated value, giving users control over a large amount of collateral to borrow more assets.

This vulnerability highlights the importance of security in the rapidly growing world of decentralized finance (DeFi). As the use of blockchain and cryptocurrency continues to increase, it is important for protocols to implement strong security measures to protect user assets.

The attack on ParaSpace is just one example of the potential risks that come with DeFi. The anonymous and decentralized nature of the blockchain can make it difficult to pinpoint where an attack originated, making it even more important to have security measures in place to prevent such incidents from occurring.

In response to the attack, ParaSpace has reportedly suspended all services while they work to address the vulnerability and ensure the security of their platform. It is important for DeFi platforms to take swift action in response to any security incidents and communicate transparently with their users to maintain trust in the platform.

The incident also highlights the importance of thorough security audits for blockchain projects, particularly those in the DeFi space. A comprehensive security audit can help identify vulnerabilities and ensure that protocols are implementing best practices to protect user assets.

In conclusion, the vulnerability in the ParaSpace NFT lending protocol serves as a reminder of the importance of security in the DeFi space. With the increasing adoption of blockchain and cryptocurrency, it is crucial for protocols to prioritize security to protect user assets and maintain the trust of their users.

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