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DeFi Platform Furucombo Was Attacked, With $ 15 Million In Damage

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Furucombo (COMBO), a tool that helps users “collect” transactions and interact with multiple decentralized financial protocols (DeFi) at the same time, has become the latest victim of hackers.

DeFi platform Furucombo was attacked, with $ 15 million in damage

Specifically, around last night, Furucombo became the target of the attack of bad actors, with an estimated total loss of up to $ 15 million in the form of ETH and many other ERC-20 tokens.

Accordingly, the attacker used the “fake smart contract” trick to trick the money transfer protocol. In the Furucombo incident, the hacker created a smart contract impersonating as a new upgrade of Aave v2, asking Furucombo to transfer money and then withdraw all of it to his wallet.

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This attack method was also the cause of the $ 20 million hacks of Pickle Finance in late 2020, or the latest, the $ 37 million theft incident of Alpha Finance Lab / Cream Finance in early February.

Immediately after the above information appeared, the Furucombo team confirmed the incident and reassured users:

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In the latest update, the project said:

“The Furucombo protocol was hacked, resulting in $ 15 million in damages. The Furucombo platform and the user’s money remain safe. We are planning to move tokens and will notify the community as soon as possible.”

Furucombo’s COMBO token price fell more than 40% in value after the hacked information appeared, dropping from $ 4.7 to $ 2.7. At the time of writing, COMBO is only trading around $ 3.

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DeFi Lending: Understanding the ins and outs of decentralized lending

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What is DeFi Lending?

Decentralized finance is a blockchain technology that eliminates the use of intermediaries like brokers and decentralized ledgers. This type of finance offers anybody willing to earn interest and profits through trade using digital assets. Most assets used for trading in decentralized finance are a result of a cryptocurrency platform called Ethereum. It is also responsible for most decentralized finance applications.

Instead of intermediaries like banks in traditional finance, Defi is enabled by smart contracts and protocols directed by AI and computer algorithms. While some think it cannot go mainstream since some traders do not accept crypto coins and tokens due to the fear of volatility, statistics do not support the same. According to Defi Pulse, there is 83.05 Billion USD locked in DeFi today. DeFi has also brought about a significant improvement to the blockchain.

How DeFi Lending works

DeFi lending provides a chance for trade between two parties and can only involve a trusted third party if the APIs allow. With the use of this criterion of finance and smart contracts, P2P ending is possible. A crypto investor can enlist his crypto coins for lending on the crypto platform and lend out to another investor by use of protocols. This type of lending is becoming a trend because of how trustless and transparent it is.

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A borrower is supposed to create an account on the cryptocurrency platform then ensure that he has an active wallet. He is then supposed to open smart contracts that are supposed to guide how the lending is expected to happen. 

Defi lending allows the lender to earn interest from the loans. One can borrow money at a specific interest rate. It is also helpful as it serves financial services while giving back to the cryptocurrency community. It is beneficial to both lenders and borrowers because borrowers can access crypto loans quickly, and the lender earns a yield from investments instead of watching wealth sit in one’s wallet.  Lenders are like investors who deposit their money in lending pools like banks in centralized finance.

Various ways can be used for an investor to access their interest and from borrowers. Moreover, different liquidity pools have different borrowing approaches, so an investor needs to research the pools. 

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Borrowers are expected to offer something of equal or more value compared to the loan amount provided. This is used as collateral during loan payments. Depending on the borrower, a wide variety of crypto tokens can be offered as collateral for the loan.

Benefits of DeFi lending

Decentralized finance is advantageous in different ways. These are;

  • Unlike traditional banks, the processing speed of crypto coins is fast
  • Decentralized finance complies with the law of the land
  • There is an availability of helpful analytics that a borrower can use to tell the best lender and vice versa
  • DeFi is permissionless
  • There is transparency in their services

As DeFi targets to go mainstream, it is advisable to try its services like lending to compare it with the usual way of things; it might just be your niche! 

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Open DeFi Notification Protocol Aims to Help Traders Manage Risk

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October 21, 2021
 — Decentralized public blockchain platform Orbs has announced the launch of the Open DeFi Notification Protocol, a product designed to supply users with free mobile notifications for consequential on-chain events.

The chain-agnostic protocol originated from the DeFi.Org Accelerator, a joint venture between Orbs, cryptocurrency exchange Binance, and wallet provider Moonstake. The Accelerator helps founders launch the next wave of innovation in decentralized finance, providing liquidity, mentorship and exposure to market players.

The Open DeFi Notification Protocol – which is Orbs’ newest contribution to the venture – leverages contributions from community members to record events such as accumulated pending rewards, price swings, near liquidations, stop loss, contract upgrades, new governance votes, and more.

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In gaining access to such data, DeFi users including traders and liquidity providers can better manage their activities and avoid losses, particularly during periods of market volatility. With a simple 30 minute integration on Github, any DeFi project can furnish its users with free mobile notifications, a feature that may help them gain an edge on rival protocols.

‘Transparency is a hallmark of blockchain, yet reliable mobile notifications that can aid the DeFi community are virtually nonexistent,’ says Orbs Co-Founder Tal Kol. 

‘Our talented team has created a user-friendly protocol that functions almost like a reactive DeFi assistant, alerting users to the possibility of impending liquidations, significant price swings, contract upgrades and the like. We are positive it will make a huge impact.’

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Although the initial beta version of the Open DeFi Notification Protocol will use a centralized node to track and display the various updates, Orbs intends to launch an updated version that utilizes the eponymous network’s set of independent nodes  to aid further decentralization.

With the Open DeFi Notification Protocol, users can set up any number of alerts for different defi apps, with the ability to integrate an open-source web component directly within many dApps’ frontend architecture. Users simply downloads the mobile app “DeFi Notifications” for iOS or Android and scan their address QR in MetaMask (or the position QR in the app’s UI). No registration is required. An example video of the Protocol working with Sushi has already been uploaded to Orbs’ official YouTube channel.

‘The great thing about the Protocol is that it can work with emerging DeFi projects,’ says Tal Kol. ‘All that’s required is the implementation of a simple JavaScript web3 class, to extract the notification from the on-chain data. This is then contributed via PR to the Protocol Github repo.’

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About Orbs

Orbs is a public blockchain infrastructure designed for mass usage applications and close integration with EVM-based L1’s and L2’s such as Ethereum, Binance Smart Chain (BSC), Polygon, Solana  and Avalanche. The Orbs protocol is decentralized,executed by a public network of permissionless validators using Proof-of-Stake (PoS) consensus and is powered by the ORBS token.

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The Biggest DeFi Hacks in 2021

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  • According to DeFi Pulse, there is around $100 billion locked up in DeFi.
  • In 2020, around $120 million was lost to DeFi hacks

Decentralized Finance deals with a decentralized ledger and lacks intermediaries, making it quite favorable but also risky. According to DeFi Pulse, there is around $100 billion locked up in DeFi. As the total value increases, so does the crime rate around it. Hackers have taken up the opportunity to loot investors as the business is booming.

Nevertheless, more measures have been taken to ensure the safety of investors’ assets. In 2020, around $120 million was lost to hackers. This year, the number is probably going to be much smaller, taking the current statistics. 

Funds are swindled from the system by use of hacks, rug pulls, and system failure. However, these are vital areas that the platforms have decided to put significant concerns on to curb the crime. These are some of the biggest hacks that have taken place this year.

Significant DeFi hacks in 2021

Yearn finance flash loan attack

The attack on the platform happened in February this year. The hackers siphoned $11 million and managed to get away with $2.7 million as profit. They used $8.5 million as fees. The hackers used flash loans which they used to make a collateralized loan. The hacker then made a deposit in Yearns pool, which led to an inflation of DAI.

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EasyFi hack

Monday 19th of April this year, a cyptojacking happened to EasiFi. The platform sits atop of the Polygon Network. A loss of $80 million worth of assets was lost to a strategic hack. The hackers took 75 million USD as assets and siphoned 6 million USD from liquidity pools. To recover the loss and prevent future similar attacks, the managing team altered the blockchain network protocol.

PAID Network major loss

The PAID network suffered a significant loss of around 180 million USD. Hackers managed impunity of 3 million USD. As if that’s not enough, the hackers minted PAID tokens worth above 180 million USD. It caused inflation in the supply of the tokens, which led to a drop in their value by about 85%. While some argue that the attack might have been a rug pull and not a hack, there are no facts attached to the claim.

Uranium Finance Token migration hack

An attack on the Binance Smart Chain network-based platform, Uranium Finance, happened during a token migration event earlier in the year. It was focused on BSC’s automated market protocol. The hacker managed to get away with 50 million USD after taking advantage of a coding error. He liquefied the process without revealing his identity.

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Spartan Flash Loans hack

The Spartan protocol is also a BSC-based platform that suffered a hack in May this year. The project lost 30 million USD taken out by flash loans from PanCake. He altered the balance of assets that were locked in the liquidity pool. He withdrew the stolen funds by use of DEXs 1inch and Nerve Finance.

DeFi platforms should heighten their security measures since DeFi hacks perpetrators are busy developing better ways to manipulate loopholes in finance to their favor. 

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