Understanding the Recent Hack on the zkSync Ecological DEX Merlin Attackers

04/26/2023 06:16 • Metaverse Matters • 88 views

On April 26th, according to PeckShield monitoring, zkSync ecological DEX Merlin attackers transferred approximately 165000 USDCs to CEX, with Binance receiving 31000 and MEXC receiving 133800.

Merlin attacker transferred approximately 165000 USDCs to CEX

Introduction

On April 26th, PeckShield monitoring detected a transfer of around 165000 USDCs by hackers to centralized exchanges Binance and MEXC. The hack happened on the zkSync ecological DEX Merlin, which has left many investors and traders concerned about the security of decentralized exchanges. In this article, we will delve into the details of the attack, the vulnerability it exploited, and the potential implications for the future of decentralized finance (DeFi).

The Mechanics of the Hack

The zkSync ecological DEX Merlin is a decentralized exchange that relies on the use of zero-knowledge proofs to secure the platform. The hackers exploited a vulnerability in the system that allowed them to create false liquidity that they then used to trade on the exchange.
The attackers then deposited around 165000 USDCs on the platform and created a fake sell order for a value close to the deposited amount. They then utilized the fabricated liquidity to purchase the USDCs at a lower price than the value that was deposited.
The hackers then withdrew the funds from the platform, resulting in the loss of almost 165000 USDCs. The hack was carried out in a way that obscured the attacker’s identity, making it difficult to track them down.

The Ramifications of the zkSync Hack

The zkSync ecological DEX Merlin hack is not the first incident of its kind in the DeFi ecosystem, and it certainly won’t be the last. The incident highlights the need for DeFi platforms to take more robust measures to secure their systems against such attacks.
The hack also raises concerns about the vulnerability of decentralized exchanges to exploits like flash loan attacks and other similar mechanisms. The fact that the recent hack obscured the attacker’s identity can discourage investors from trusting decentralized exchanges.

Conclusion

The zkSync ecological DEX Merlin hack underscores the need for greater security measures on DeFi platforms. There is a need for DeFi projects to examine their security systems and protocols to prevent future hacks.
This should involve the auditing of code and platform architecture by reputable third-party actors, the adoption of stricter whitelist rules for listed tokens, and the implementation of multi-layered security systems that can provide adequate protection from malicious attacks.

FAQs:

1. What is DeFi?
DeFi refers to a system of financial products built on decentralized platforms that operate using blockchain technology.
2. How can DeFi platforms prevent future hacks?
DeFi platforms can prevent future hacks by auditing their code and platform architecture, adopting stricter whitelist rules for listed tokens, and implementing multi-layered security systems that can provide adequate protection from malicious attacks.
3. What are the implications of the zkSync ecological DEX Merlin hack?
The hack raises concerns about the vulnerability of decentralized exchanges to exploits like flash loan attacks and other similar mechanisms. It also highlights the need for DeFi platforms to take more robust measures to secure their systems against such attacks.

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