Binance Smart Chain's Spartan Protocol Loses $30M+ in Exploit

The attack happened just a few days after another DeFi protocol was attacked on Binance Smart Chain.

May 2, 2021 at 4:04 p.m. UTC
Updated Sep 14, 2021 at 12:49 p.m. UTC

Spartan Protocol, a decentralized protocol built on Binance Smart Chain for incentivized liquidity and synthetic assets, was exploited earlier Sunday UTC due to "a flawed liquidity share calculation" in the protocol, resulting in a loss of more than $30 million, according to a Medium post by on-chain analysis and security startup PeckShield.

  • "In particular, the specific hack inflates the asset balance of the pool before burning the same amount of pool tokens to claim an unnecessarily large amount of underlying assets," the post read.
  • "What we know so far – attacker used $61 million in BNB to overcome the pools via a[n] as yet unknown economic exploit path to remove roughly $3 million in funds from the pools," according to the official Twitter account of Spartan Protocol, which first reported the incident around 12:21 a.m. UTC on May 2.
  • According to Spartan Protocol's official website, the decentralized finance (DeFi) liquidity platform "provides community-governed and programmable token emissions functions to incentivize the formation of deep liquidity pools."
  • The attack came just a few days after Binance Smart Chain's DeFi exchange Uranium Finance lost more than $50 million in an exploit on April 28 from a similar attack.
  • The attack on Spartan Protocol makes it the sixth-biggest monetary exploit in DeFi history, according to Rekt, after EasyFi's $59 million, Uranium Finance's $57.2 million, Kucoin's $45 million, Alpha Finance's $37.5 million and Meerkat Finance's $32 million.

The Festival for the Decentralized World
Thursday - Sunday, June 9-12, 2022
Austin, Texas
Save a Seat Now

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Trending

1
Bitcoin enfrenta siete semanas seguidas de pérdidas por primera vez

Los temores por la inflación y el sentimiento macroeconómico deficiente han provocado que bitcoin fracase como escudo contra la inflación en las últimas semanas.

Los temores por la inflación y el sentimiento macroeconómico deficiente han provocado que bitcoin fracase como escudo contra la inflación en las últimas semanas.

2
Ben Bernanke Says He Doesn't See Value in Bitcoin

The former Fed chairman says the crypto is too complicated to use as money.

The former Fed chairman says the crypto is too complicated to use as money.

3
What Is Bitcoin Pizza Day?

In May, 2010 Laszlo Hanyecz set out to buy two large pizzas with bitcoin.

In May, 2010 Laszlo Hanyecz set out to buy two large pizzas with bitcoin.

4
Celsius Network Files Draft S-1 Form to Take Its Mining Unit Public

The filing is expected to become effective after the SEC completes its review process, subject to market and other conditions.

The filing is expected to become effective after the SEC completes its review process, subject to market and other conditions.