Grim Finance has confirmed that it has been hacked for $30 million worth of tokens. Grim Finance, in a tweet, revealed that:

“The exploit was found in the vault contract, so all of the vaults and deposited funds are currently at risk.”

Grim says it is a “compounding yield optimizer.” This means it will wring additional value from liquidity provider tokens received by users from decentralized exchanges if locked in a Grim vault.

Grim’s protocol is built on the Fantom Opera blockchain. The Fantom blockchain is a smart contract-enabled platform that incorporates the solidity language. This platform is compatible with Ethereum.

A reentrancy attack was used by the hacker. This is an exploit that enables someone to fake into a vault while performing an initial transaction and, as such, tricking the protocol. Grim tweeted:

“Hello Grim Community, It is with heavy hearts that we inform you that our platform was exploited today by an external attacker roughly 6 hours ago. The attackers address has been identified with over 30 million dollars worth of theft. We have contacted and notified Circle (USDC), DAI, and AnySwap regarding the attacker address to potentially freeze any further fund transfers.”

However, the attacker is laundering the stolen funds via stablecoin transfers.

According to Rugdoc.io, a DeFi watchdog group, Grim Finance should have used a reentrancy guard. Rugdoc.io tweeted:

“Hopefully all projects can draw lessons from this incident that there is much knowledge most experienced solidity devs have at hand,” it tweeted. “If you haven’t acquired this yet, don’t build multi-million dollar projects. Don’t get audits from companies which everyone knows are useless.”

Disclaimer: Information found on Blue Edge Crypto is those of writers quoted. It does not represent the opinions of Blue Edge Crypto on whether to buy, sell, or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk. See Disclaimer for more information.