Key Takeaways

  • The hack on Opyn’s Ethereum put options happened around 4:00 AM PT
  • The team secured 572,165 USDC from its contract, but the hacker still got away with 371,260 USDC
  • Opyn is decentralized, and the team cannot shut it down in the case of emergency

Share this article

Opyn, a protocol offering options for ETH, DeFi tokens, as well as insurance on Compound deposits, was hacked. At least 371,260 USDC were lost because of the double-spend attack on its Ethereum put options.

Opyn Protocol Exploited

Only ETH put contracts were affected by the attack. The hacker used an exploit in Opyn protocol’s options tokens (oTokens) to steal collateral from users who sold these ETH puts.

Opyn responded to the exploit by removing the ability to buy corresponding oTokens and draining their own protocol’s smart contract to liquidate ETH puts, saving further collateral from exploitation. A total of 572,165 USDC was drained from the contract.

While security firm OpenZeppelin audited the contracts, the exploit was outside of the audit’s scope, Opyn team announced it would release more technical details on the exploit at a later date.

Response to the Hack

The team reacted responsibly to the attack, saying that it will implement measures to mitigate the impact for people who lost money in the hack. For those with saved collateral and ETH put oTokens still on hand, the team offered to buy the tokens with a 20% markup on Deribit to compensate them for damages.

Opyn’s generalized options protocol “Convexity” is fully decentralized, the team doesn’t control it and can’t shut it down, so there was a limited opportunity to deal with the aftermath of the hack. The project’s example shows that smart-contract development should be treated as hardware development: if you ship a smartphone with a defect, there’s little you can do if things go wrong.

Cred - earn easier

Crypto Briefing reached out to the Opyn team and has yet to receive a comment on the incident.

Opyn is taking other measures to prevent future exploits. In its latest report, the team stated that it would review its internal security and testing practices while increasing its bug bounty rewards. Moreover, it will conduct additional audits besides those already scheduled with Open Zeppelin. Finally, the contracts will go through Echidna, a program for testing smart-contracts created by the well-established audit firm Trail of Bits.

The hack highlights the vulnerability of the DeFi space. Still, Opyn’s response to the incident is adequate and instills optimism about Opyn’s future despite the negative impact of the attack.

Share this article

130 COMMENTS

  1. Сімейні консультації. Онлайн консультация Психолог,Психолог онлайн.
    Индивидуальный подход к консультированию!
    Консультация психолога в Киеве
    Услуги аналитического психолога, психотерапевта.
    Опытные психотерапевты и психологи.
    Консультация у психолога.

  2. Семейное консультирование и психотерапия.
    Метод семейных расстановок по Берту Хеллингеру Метод
    Берта Хеллингера. Метод системных семейных расстановок.

    Системные расстановки. Растановки.
    Метод семейных расстановок по Берту Хеллингеру.

  3. новые танцы 8 выпуск смотреть новые танцы в хорошем качестве бесплатно

    новые танцы на тнт 2021 смотреть бесплатно
    новые танцы лучшее новые танцы 8 выпуск новые
    танцы онлайн бесплатно

  4. Quality articles is the important to be a focus for the users to go to see the web site, that’s what this web page is providing.|

  5. I was suggested this website by my cousin. I am not sure whether this post is written by him as nobody else know such detailed about my difficulty. You’re amazing! Thanks!|

  6. Hi there, You have done an excellent job. I will definitely digg it and personally suggest to my friends. I’m sure they’ll be benefited from this website.|

  7. I enjoy, lead to I found just what I used to be having a look for. You’ve ended my four day long hunt! God Bless you man. Have a great day. Bye|

  8. Ahaa, its fastidious conversation about this piece of writing at this place at this weblog, I have read all that, so at this time me also commenting at this place.|

  9. If you wish for to grow your knowledge only keep visiting this web site and be updated with the most recent news posted here.|

LEAVE A REPLY

Please enter your comment!
Please enter your name here