Avalanche Based Defi Platform, Vee Finance Gets Hacked for $35M

over 2 years ago (Edited)

Evening

So after yesterday's exploit of pNetwork, we got another defi hack at our hands. Vee Finance an avalanche based defi platform today announced losing $35 million in an exploit, just a few days after its launch.

After pausing their service, Vee Finance announced that the hacker managed to drain the contract address for a total of 8804.7 ETH (around $26 million) and 213.93 BTC (around $9 million). Vee Finance also mentioned the address from which the attack was launched and where the stolen funds are being held for now.

To avoid any further loss Vee Finance have suspended all the platform's contracts along with deposits and withdrawals. The details regarding the exploit are not fully known yet. Butthe platform's team tried contacting hackers via twitter, offering them bug bounty in exchange for returning stolen funds.

Following the exploit the price of platform's native Vee token plummeted from $0.25 to $0.085, before recovering a bit.

Vee Finance exploit isn't the first one, as last week another Avalanche-based DeFi application Zabu Finance got hacked for $3.2 million. Apparently Defi hacks are picking up pace again. Newer defi platforms attract plenty of liquidity reward hunters due to their higher APRs, e.g. in case of Vee Finance, the platform's TLV reached $300 million in just a few days.

However care needs to be exercised before choosing a platform to pledge funds into, as many of the high yield offering protocols are often layed out hastily without due diligence to potential bugs.