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Exactly Protocol, a decentralized credit market built on the Optimism network, fell victim to an exploitation event on August 18th. This incident led to a notable decrease in the platform’s total value locked (TVL).
In the meantime, the recently introduced native token of Exactly, EXA, experienced a decline of over 27% within a single day. The protocol has been temporarily suspended.
Another DeFi Project Compromised
PechShield, a blockchain security firm, was the first to notify Exactly Protocol about the breach and advised users to take appropriate measures. Initial investigations indicated a loss of 4,300 ETH, which is approximately $7.3 million. However, a recent update from De.Fi, a Web3 antivirus service, disclosed that over 7,160 ETH, valued at nearly $12.04 million, has been extracted from the protocol.
The security firm further elaborated that the method of exploitation seems to involve funding an exploiter contract on Ethereum, moving deposits to the layer-2 blockchain, Optimism, and subsequently bridging the stolen assets back to Ethereum.
Exactly Protocol has not yet verified the attack but stated that it is looking into a security concern, which has led to the temporary suspension of the platform. Users are still able to withdraw their assets. The official statement regarding this matter read,
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“We’re actively investigating a security issue within our protocol. To ensure user safety, the protocol is temporarily paused (you can still withdraw assets). Our team is on top of this and will share more details asap.”
According to data from DeFiLlama, the total value locked in Exactly Protocol plummeted from $37 million to $11.74 million following the incident, reflecting a decrease of nearly 70%.
Widespread Security Breaches in DeFi
This recent event occurs amid a surge of exploitation incidents within the DeFi space. Earlier this month, the Solana-based DEX Cypher Protocol was compromised, resulting in exploiters acquiring close to $1 million in crypto-assets.
However, more than half of the misappropriated funds were subsequently frozen with the assistance of centralized crypto exchanges and private blockchain investigators, while law enforcement agencies have issued seizure warrants.
Nevertheless, not all exploits conclude positively. Recently, the DeFi project Zunami Protocol incurred losses exceeding $2 million due to price manipulation facilitated by donations to the protocol.
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