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Detail Analysis

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Date:

Status:

Count:

Contributor:

June 16, 2021

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Verified

1

zerofriction.io

Loss Amount:

6,530,000

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Recovered Amount:

-

Currency:

Dollars

KYC By:

Audit By:

None

None

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Website:

Twitter:

No data

Discord:

No data

Telegram:

No data

Medium:

No data

Github:

No data

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Key Indicators

Platform:

Type:

Category:

Method:

Ethereum

Protocol

Synthetics

Contract Vulnerabilities

Extended Method:

Logic error

Data Sources:

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Alchemix is a DeFi protocol that allows for the creation of synthetic tokens that represent the future yield of a deposit. The DeFi lending agreement Alchemix alETH pool is suspected to have a loophole. A flaw in the deployment script of this vault accidentally created additional vaults (which were not supposed to exist) and placed them in the array of vaults. The Alchemist contract accidentally used the incorrect index into this vault array when calculating reward values. This caused transmuter funds (i.e. rewards) to be sent to pay off debts within the alETH vault instead of going to the correct user. With their debts paid off, the users of these vaults were able to withdraw the collateral for their loans without paying off the loans themselves. This resulted in the extraction of $6.5 million from the protocol.

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DISCLAIMER: While Zero Friction LLC has used the best efforts in aggregating and maintaining this database, Zero Friction LLC makes no representations or warranties with respect to the accuracy or completeness, and specifically disclaim any implied warranties of merchantability or fitness for any particular purpose. 

Under no circumstances, shall Zero Friction LLC be liable for any loss of profit or funds, any regulatory or governmental penalties, any legal costs, or any other commercial and non-commercial damages, including but not limited to special, incidental, consequential, or other damages from any or all usage of the dataset or information derived from our database.