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QiDAO stablecoin exploited for $13M by Superfluid

According to early reports, the stolen monies belonged to some of the project’s early backers and included team vested tokens.

The Superfluid vesting contract of Polygon’s native stablecoin protocol QiDAO was exploited, resulting in a 65 percent reduction in the price of the governance token QI. The price of QI dropped from $1.24 to $0.18.

On Tuesday, QiDAO acknowledged the Superfluid vesting contract exploit on Twitter, but assured users that their assets are safe and that none of QiDAO’s funds had been harmed. Superfluid verified the QiDAO exploit and stated that they are researching the problem and will provide updates as needed. The protocol allows users to move assets on-chain in a continuous flow from one wallet to another in real-time.

While the user’s assets were not affected, the attackers were able to make off with $20 million in tokens, including 24 WETH, 562,000 USDC, 44 SDT, 1.5 million MOCA, 23,000 STACK, and approximately 40,000 sdam3CRV. According to early reports, the stolen monies belonged to some of the project’s early backers and included team vested tokens.

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SlowMist, a crypto-analytics firm, produced a fund tracker that shows the balance of each coin taken. They assessed that the hackers stole around $13 million worth of cryptocurrency after studying the wallet transaction data.

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The hackers behind the attack began dumping stolen QiDAO on Quickswap DEX with heavy slippage, causing the governance token’s price to plummet by 65 percent. After plunging below $0.18, the Polygon community took advantage of the opportunity to buy the dip, helping the governance token rise to $0.6. It’s worth noting that the exploit was carried out utilising a Superfluid vulnerability, rather than QiDAO.

Following the exploit, QiDAO momentarily suspended its bridge in the hopes of quickly resolving the problem. The hack was discovered just 24 hours after Polygons’ $450 million campaign, however the community reacted positively to the native stablecoin protocol, emphasising that it was due to a third-party weakness rather than a problem with the protocol itself.

 

Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.

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