Decentralized finance (DeFi) project Cover Protocol lost over 90% in price after a hacker gained control over the project's smart contract and issued over 40 quintillion COVER tokens. The project's developers say they are still "investigating the current incident." The exploit is no longer possible, the developers emphasize.
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As of press time, the price of the COVER token lost 96.40% and is trading at $26.44.
While it remains to be seen how exactly the hacker managed to exploit the contract, a few hours after the attack a "white hacker," Grape.finance, returned approximately $3 million, to the protocol. The attacker then burned the remaining 40 quintillion tokens.
As iHodl earlier reported, the other DeFi project Warp.finance also lost several million dollars due to a flash loan attack. Flash loan traditionally allows anyone to get unlimited assets for unsecured transactions, provided they are returned to the same block.
Shortly after, the developers said they had successfully recovered ~75% of the $7.76m lost funds. The team added it had updated the snapshot of addresses to include the addresses with funds that were deposited after the exploit and resulted in a loss.
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