Web3 Knowledge Graph Protocol 0xScope Founder Bobbie Reports Hackers Stealing $1.82M in Funds from zkSync Ecological DEX Merlin
On April 26th, it was reported that Bobbie, the founder of Web3 Knowledge Graph Protocol 0xScope, tweeted that the liquidity of zkSync ecological DEX Merlin was
On April 26th, it was reported that Bobbie, the founder of Web3 Knowledge Graph Protocol 0xScope, tweeted that the liquidity of zkSync ecological DEX Merlin was depleted, and hackers stole $1.82 million in funds and bridged it to Ethereum.
ZkSync Ecological DEX Merlin Liquidity Exhaustion
Introduction
On April 26th, 2021, Bobbie, the founder of Web3 Knowledge Graph Protocol 0xScope, reported that liquidity from the zkSync ecological DEX Merlin was depleted, and hackers stole $1.82 million in funds and bridged it to Ethereum. This event is yet another reminder of the importance of secure blockchain protocols, and the need for vigilance in ensuring the safety of user assets.
What happened?
According to Bobbie’s tweet, the attack took place at 6:47 pm UTC on April 25th. The attacker was able to drain liquidity from Merlin’s zkSync contract, and subsequently bridge the stolen funds to Ethereum.
The audit report of Merlin’s zkSync contract showed that there is an error in the contract that allowed attackers to mint a large number of tokens, after which they could exchange them on the exchange. This enabled the attacker to fake transactional liquidation and, as a result, steal $1.82 million in funds, causing a significant liquidity depletion in Merlin’s network.
What is zkSync?
zkSync is a scaling solution that uses zero-knowledge proofs (zk-proofs) to enable fast and secure transactions. It is designed to meet the needs of decentralized applications (DApps) and decentralized exchanges (DEXs) by providing high-speed and low-cost transactions. Merlin is one of the DEXs that uses zkSync as its underlying scaling solution.
What impact will this have?
The implications of this attack are significant for Merlin and for the broader DeFi community. For Merlin, the loss of funds will affect the liquidity of the network and may lead to its collapse. For the wider DeFi community, this hack highlights the need for better security measures on DEXs, particularly those using zk-proofs to ensure that vulnerabilities are identified and addressed promptly.
How can we prevent future attacks?
The DeFi industry needs to prioritize security and implement robust security measures to prevent future attacks. DEXs should conduct regular security audits and implement stricter rules for enforcing the integrity of the contracts. Consistent measures should also be implemented to ensure that proper measures are taken to prevent potential losses.
Conclusion
The recent hack on Merlin’s zkSync contract underscores the importance of security in the DeFi industry. This event is yet another example of the need for vigilance when it comes to securing user assets. Proper security measures should be implemented at all stages of development, from design to deployment, to prevent similar incidents from occurring in the future.
Frequently Asked Questions
Q1: What is a DEX?
A: A decentralized exchange (DEX) is a platform for decentralized trading of digital assets without the need for intermediaries.
Q2: Why is security essential for DeFi?
A: Decentralized finance (DeFi) relies on smart contracts, which control the execution of financial transactions. If these smart contracts are not secure, they can be exploited.
Q3: What is a zk-proof?
A: A zk-proof is a zero-knowledge proof, a cryptographic concept that allows a user to prove knowledge of a secret without revealing the secret.
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