Flash loan attack, unprotected burn function
The Zenon Network hack was made possible by an unprotected burn function within the smart contract. This function destroys tokens in the pool, which can cause the value of the remaining tokens to increase. Access to burn functions should be restricted, but the Zenon Network’s was accidentally labeled as external, making it publicly callable.
The Zenon Network attacker took advantage of this in a flash loan attack. They invested tokens in the protocol’s pool for wrapped ZNN (wZNN) tokens and then called the burn function to destroy over 26k wZNN tokens. Approximately $1M was taken.
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