The 0VIX Protocol Exploitation: An Overview of the Latest Attack on the Polygon Ecosystem

04/30/2023 01:57 • Tech Trends • 96 views

According to reports, Arkham monitoring found that the Polygon ecosystem project 0VIX Protocol has been exploited by attackers to raise vGHST prices and borrow a large amount of dollars. The attacker has currently transferred the USDC to the ETH main network and exchanged it for 757 ETH.

0VIX attacker has transferred USDC to ETH main network and exchanged it for 757ETH

The recent exploitation of the 0VIX Protocol by attackers has caused concerns in the Polygon ecosystem. In this article, we will dive deeper into what happened, how the exploit was executed, and how it affected the prices of vGHST.

Introduction

According to Arkham monitoring reports, an attacker has found a vulnerability in the 0VIX Protocol and exploited it to raise vGHST prices and borrow a large amount of dollars. The incident highlights the risks of investing in DeFi protocols and reminds us of the importance of diligence.

What is 0VIX Protocol and vGHST?

The 0VIX Protocol is a decentralized prediction market platform that allows users to create and participate in future contracts. vGHST is the governance token of Aavegotchi, a DeFi game that is built on top of the 0VIX Protocol.

How was the exploit executed?

The attacker used a flash loan to manipulate the vGHST price on QuickSwap, which caused the price to increase by 14x. The attacker then used the inflated price to borrow USDC from Aave, which was used to purchase vGHST at the inflated price. The attacker then sold the vGHST at the original price, making a profit.

How did the exploit affect the prices of vGHST?

The exploit caused the price of vGHST to increase sharply, from $0.5 to $7. The sudden spike in price triggered a liquidation event in Aave, causing the attacker’s position to be liquidated.

What happened after the exploit?

The attacker has currently transferred the USDC to the ETH main network and exchanged it for 757 ETH. The Aavegotchi team has also deployed a fix to prevent similar exploits from happening in the future.

Conclusion

The recent exploit on 0VIX Protocol highlights the vulnerabilities and risks associated with DeFi protocols. As the DeFi ecosystem continues to grow, it is important for investors to remain vigilant and conduct proper due diligence to minimize the risks of investing in decentralized platforms.

FAQs

1. Will the incident have a long-term impact on the value of vGHST?
It is difficult to predict the long-term impact of the exploit on the value of vGHST. However, the incident highlights the importance of building and maintaining secure DeFi protocols.
2. Is Aavegotchi a secure platform to invest in?
The Aavegotchi team has deployed a fix to prevent similar exploits from happening in the future. It is important for investors to conduct their own research and due diligence before investing in any DeFi platform.
3. What measures can be taken to prevent similar exploits from happening in the future?
Developers can take measures such as auditing their code and implementing security measures like bug bounty programs to prevent similar exploits from happening in the future.

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