Key Takeaways

  • bZx marked it’s third exploit of 2020, losing $8.1 million of funds to a vulnerability in the code.
  • The BZRX token fell by 30% in the aftermath of the incident, as the burden of the loss was shifted to the insurance fund.
  • bZx’s fate rests with the broader DeFi community and whether they decide to return to the protocol as users.

Share this article

Less than two weeks after re-deploying on mainnet, bZx has been exploited for $8.1 million of LINK, ETH, and stablecoins. The incident caused the BZRX token to fall over 30%, as the value of the token secures protocol deficits.

How Many Times Is Too Many?

Earlier this year, the team behind bZx paused the protocol after two consecutive hacks caused a mass outflow of capital. Promising to come back stronger, bZx built a new iteration of the product over six months. The protocol was finally deployed again on Sept. 2.

It’s been less than two weeks, and bZx has been attacked once again.

This time, however, the loss is exceptionally higher than before. Given prevailing prices at the time of the hacks, bZx had been previously exploited for $330,000 and $640,000, respectively.

The latest hack saw $8.1 million of customer funds lost.

bZx’s iToken’s were deployed with a bug that allowed users to increase their balances artificially. The platform’s sustained losses were as follows:

  • 219,199.66 LINK ($2.61 million)
  • 4,502.70 ETH ($1.65 million)
  • 1,756,351.27 USDT
  • 1,412,048.48 USDC
  • 667,988.62 DAI

The insurance fund will bear the liability for these losses. Since the BZRX token derives a portion of its value from the insurance fund, its price tanked 31% yesterday.

BZRX is down 74% since peaking on Aug. 31.

Cred - earn easier
BZRX price chart
Source: TradingView

Even after writing new code, employing fresh audits, and coming back to mainnet, bZx cannot seem to catch a break – and neither can their investors.

In a blog post dissecting the incident, bZx attributed the multiple hacks to the protocol being “the most powerful, fully functioned lending protocol in the space, and this means that there is a lot of code to cover.”

Smart contracts are challenging, but suffering three exploits in seven months is absurd.

The fate of bZx is now solely in the hands of the DeFi community. Whether users will return to the protocol remains to be seen.

Share this article

25 COMMENTS

  1. Thanx for the effort, keep up the good work Great work, I am going to start a small Blog Engine course work using your site I hope you enjoy blogging with the popular BlogEngine.net.Thethoughts you express are really awesome. Hope you will right some more posts.

  2. Hello.This post was extremely remarkable, particularly since I was searching for thoughts on this issue last Monday.

  3. You really make it seem really easy along with your presentation but I in finding this matter to be really something that I believe I’d never understand. It seems too complicated and very vast for me. I’m having a look forward on your next publish, I?¦ll attempt to get the cling of it!

  4. Good day! I know this is kinda off topic however , I’d figured I’d ask. Would you be interested in exchanging links or maybe guest authoring a blog post or vice-versa? My blog addresses a lot of the same subjects as yours and I think we could greatly benefit from each other. If you happen to be interested feel free to send me an email. I look forward to hearing from you! Fantastic blog by the way!|

  5. Quality articles or reviews is the secret to attract the viewers to pay a visit the web site, that’s what this web site is providing.|

  6. If you would like to grow your familiarity just keep visiting this site and be updated with the newest information posted here.|

  7. Hi, Neat post. There is a problem with your web site in internet explorer, could check this? IE nonetheless is the marketplace leader and a big component to folks will miss your fantastic writing due to this problem.|

LEAVE A REPLY

Please enter your comment!
Please enter your name here