- Rodeo Finance is a decentralized finance (DeFi) protocol based mostly on Arbitrum.
- The hacker manipulated worth oracles and executed trades utilizing the manipulated worth.
- Rodeo Finance native token worth drops 54% after hack.
July 11 Arbitrum-run decentralized finance (DeFi) protocol Rodeo Finance was hacked, ensuing within the lack of 810 Ether (ETH) price 1.53 million. DEX was exploited utilizing a vulnerability in Oracle’s code.
Peckshield, a blockchain analytics agency, revealed information exhibiting that the exploiter finally transferred the stolen funds from Arbitrum to Ethereum, exchanging 285 ETH for $unshETH. Later, the exploiter put ETH on high of ETH2. Final however not least, the exploiter used the well-known mixer service Twister Money to channel the stolen ETH.
Time Weighted Common Worth (TWAP) Orcale Manipulation
A hacker manipulated Rodeo’s Time Weighted Common Worth (TWAP) on Oracle and corrupted ETH pricing.
The TWAP Oracle is utilized in DeFi protocols to calculate the common worth of an asset over a time period to scale back worth fluctuations as a result of volatility of the cryptocurrency market. Nonetheless, it’s susceptible to manipulation by artificially distorting the estimated common property costs.
The exploiter first borrowed a considerable amount of ETH after which artificially manipulated the value to purchase the identical asset at a reduced worth. The hacker later repaid the mortgage and made a revenue as a result of low worth after the manipulations.
Rodeo’s TVL drops dramatically
Along with a 54% drop within the Rodeo Finance (RDO) token, the hack additionally precipitated Rodeo’s Whole Locked Worth (TVL) to drop dramatically.
Earlier than the hack, the DeFi protocol had a TVL of $20 million, however after the hack, it dropped under $500.
That is the second time that in 2023 July. Rodeo Finance was hacked. It was hacked in 2023. on July 5, and $89,000 price of crypto belongings have been misplaced attributable to a vulnerability within the mintProtocolReserves function.
