Cronos halted its blockchain on Sunday after an exploit hit Tectonic, which occurs to be its largest lending protocol. Specialists estimated that roughly $75 million in belongings had been affected.
To date, no timeline has been offered for when the community will resume. The blockchain has additionally not mentioned what’s going to occur to the belongings linked to the attacker after the chain is restarted.
Third Mango-Model DeFi Assault?
Crypto.com CEO Kris Marszalek confirmed the safety breach and mentioned that the Cronos group was investigating the incident. The Cronos app and trade weren’t affected and continued working as common, and Marszalek asserted that each one funds had been secure.
On-chain monitoring platform LookonChain reported that the attacker was solely capable of bridge $6.29 million to Ethereum. These funds had been swapped for two,592 ETH when the community was halted. Because of this, the remaining $68.7 million is caught on the Cronos Community.
In the meantime, researcher Weilin Li mentioned the assault was linked to Tectonic’s TONIC governance token, which has a 20% collateral issue regardless of having very skinny liquidity. In accordance with Li, the attacker carried out a Mango Markets-style pump-and-borrow worth manipulation assault, which prompted TONIC’s worth to surge 100-fold inside 20 minutes.
Comparable price-manipulation assaults have additionally affected different DeFi platforms just lately. As an example, Moonwell, a lending protocol on the Base community, misplaced over $8 million final week after an attacker manipulated the collateral worth of MAMO, a small-cap token with skinny liquidity. In response, Moonwell reduce borrow caps for all Core Markets on Base to 1 wei, which successfully stopped new borrowing throughout the deployment. It additionally decreased provide caps for MAMO and WELL to 1 wei, whereas leaving different provide caps unchanged.
One other current case concerned a low-liquidity Pendle market, the place worth manipulation led to about $36 million in liquidations of leveraged PT-reUSD positions on Morpho.
Aftermath
Tectonic’s locked belongings have dropped sharply following the exploit. In accordance with the most recent stats by DefiLlama, the lending protocol held round $121 million on August 29.
Two days later, that determine had fallen to roughly $3 million.
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