Arbitrum-based Jimbos protocol hacked, losing $7.5 million in Ether
The attacker used the lack of drag control on the tokens to steal the funds.
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Adding to the growing number of decentralized finance (DeFi) protocol hacks in the crypto industry, the Jimbos protocol is the latest to suffer an attack resulting in a significant loss of funds.
According to blockchain security firm PeckShield, the Jimbos protocol – the liquidity protocol of the Arbitrum system – was hacked on the morning of May 28. The attack resulted in the loss of 4,000 Ether (ETH), worth around $7.5 million at the time. .
Specifically, the attacker took advantage of the lack of slippage control on liquidity conversions. The protocol's liquidity is invested in a price range that need not be equal, creating a loophole where attackers can cancel trade orders for their own gain.
Although launched less than 20 days ago, the Jimbos protocol aimed to manage liquidity and volatility in token prices through a new testing approach. However, the mechanism of the protocol was not sufficiently developed, which led to a logical vulnerability creating favorable conditions for attackers. As a result, the price of the underlying token, Jimbo (JIMBO), fell by 40%.
#PeckShieldAlert $JIMBO dropped -40%https://t.co/fXZPG27zdM pic.twitter.com/zMPs75jUtK
— PeckShieldAlert (@PeckShieldAlert) May 28, 2023According to PeckShield's findings, the attackers mined 4,090 ETH from the Arbitrum network. Subsequently, they used the Stargate bridge and the Celer network...
The attacker used the lack of drag control on the tokens to steal the funds.
News
Join us on social networks
Adding to the growing number of decentralized finance (DeFi) protocol hacks in the crypto industry, the Jimbos protocol is the latest to suffer an attack resulting in a significant loss of funds.
According to blockchain security firm PeckShield, the Jimbos protocol – the liquidity protocol of the Arbitrum system – was hacked on the morning of May 28. The attack resulted in the loss of 4,000 Ether (ETH), worth around $7.5 million at the time. .
Specifically, the attacker took advantage of the lack of slippage control on liquidity conversions. The protocol's liquidity is invested in a price range that need not be equal, creating a loophole where attackers can cancel trade orders for their own gain.
Although launched less than 20 days ago, the Jimbos protocol aimed to manage liquidity and volatility in token prices through a new testing approach. However, the mechanism of the protocol was not sufficiently developed, which led to a logical vulnerability creating favorable conditions for attackers. As a result, the price of the underlying token, Jimbo (JIMBO), fell by 40%.
#PeckShieldAlert $JIMBO dropped -40%https://t.co/fXZPG27zdM pic.twitter.com/zMPs75jUtK
— PeckShieldAlert (@PeckShieldAlert) May 28, 2023According to PeckShield's findings, the attackers mined 4,090 ETH from the Arbitrum network. Subsequently, they used the Stargate bridge and the Celer network...
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