Decentralized exchange QuickSwap said it will close its lending pool after marketplace XYZ was abused in a flash loan attack.
In the early hours of October 24, blockchain security firm PeckShield with flag Flash loan attack against QuickSwap’s lending pool, Market XYZ.
The attackers manipulated the price of Curve Oracle’s miMATIC to borrow approximately $220,000 deposited by Qi Dao.
As a result of the exploit, QuickSwap has announced plans to shut down the Market XYZ lending pool.
2/🌱 @Qi Dao Protocol Provided seed funding for this market.User funds were not compromised
💸 Due to the closure, we encourage users with funds deposited to the public market of Market xyz on QuickSwap to withdraw now
— Quick Swap (@QuickswapDEX) October 24, 2022
However, QuickSwap and Qi Dao said exploitation of the vulnerability did not affect smart contracts.
Hacking in October
Black hat hackers have been killed by abusing cryptographic protocols since the beginning of October.
According to a recent Chainalysis report, DeFi protocols lost around $718 million in the first two weeks of October, with four hacks on October 11th.
One of the key hacks on October 11th was the Mango market exploit that cost the protocol over $100 million. The hackers exposed themselves and reportedly returned the stolen funds.
By the third week of October, multi-chain wallet Bitkeep reportedly lost $1 million due to a swap exploit. Bitkeep has promised to compensate all victims of the exploit.
QuickSwap’s $200,000 loss opens the fourth week of hacking records.
