Hack Hits Abracadabra Finance, Resulting in Over $6.4 Million Loss
Cyvers and Peckshield security analysts have identified an issue in the smart contract of Abracadabra Finance, leading to a precision flaw and allowing the attacker to borrow a large number of MIM tokens with fewer guarantees. The estimated loss from the hack amounts to over $6.4 million.
Abracadabra Finance Falls Victim to Extensive Hack
The attack targeted the smart contract of Abracadabra Finance, enabling attackers to exploit a precision flaw. Lei Wu, the technical director of Blocksec, explained that this flaw resulted in insufficient insolvency checks, facilitating the abusive borrowing of MIM tokens. At the time of the incident, over $29 million in assets were still present in the affected contract.
Impact on MIM Stablecoin
The incident temporarily devalued Abracadabra Finance’s MIM stablecoin, briefly causing it to drop below $0.7 before recovering to $0.96. Prior to the hack, Abracadabra’s protocol TVL stood at over $160 million.
Measures Taken by Abracadabra Finance Team
In response to the attack, Abracadabra Finance communicated about the hack involving some of its Ethereum cauldrons and confirmed its team was investigating the situation. Furthermore, to address the MIM devaluation, the DAO treasury plans to repurchase MIM from the market and burn them in order to stabilize the situation.
