Prominent DeFi Coin Pickle Finance Plunges 50% in Wake of Attack
Owners of Pickle Finance’s native coin PICKLE are currently suffering from a 50% drawdown after the log was attacked by an unknown user. Details about the attack are still unclear, but the loss of funds has resulted in users using up their liquidity and selling the cryptocurrency en masse.
PICKLE is down to $ 11.50 at the time of this writing, down nearly 50% from what it was 24 hours ago. This makes it one of the worst performing cryptocurrencies in the past 24 hours. Bad performers include yAxis and Yield Wars, both of which are tangentially related to Pickle.
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What happened to pickle?
About three hours ago, analysts noticed a suspicious transaction with Pickle Finance’s pDAI Jar that invests the user’s DAI to generate regular returns that are paid out in DAI.
The transaction involved a complex Ethereum contract as well as a $ 20 million DAI sent to an address that was not a contract.
It appears to be a bug related to Pickle’s Swap Jar functionality which allows for yield breeding strategies to be swapped. The problem was that there appeared to be no verification to make sure the jar the funds were exchanged into was not malicious.
This resulted in the cancellation of $ 20 million from the contract. It is currently unclear what the attacker will do with the funds, although some have tried to contact the attacker to try to get their money back.
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Lots of DeFi exploits
This is the latest in many DeFi exploits.
Previous attacks included attacks on Harvest Finance, Value DeFi, Akropolis’ Delphi Yield Farming Pool, and a number of others.
Many believe that it is too early to suggest that given the number of attacks that have recently occurred, this area is ready for general adoption.
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Featured Image from Shutterstock Price tags: pickle, pickleusd, pickleeth Charts from TradingView.com Prominent DeFi Coin Pickle Finance Plunges 50% in Wake of Attack