Monday, the popular DEX announced that it has discontinued the lending protocol QuickSwap Lend.
Today, hackers targeted the decentralized exchange (DEX) QuickSwap and stole $220,000 using a flash loan vulnerability.
Following the attack, the DEX announced on Monday that it has disabled its lending protocol, QuickSwap Lend. It noted that its Market XYZ loan market was the sole platform affected by the vulnerability.
According to the DEX, users suffered no financial losses. Flash loans, which are prevalent in the DeFi (decentralized finance) community, enable crypto users to get quick loans without collateral.
However, they are susceptible to exploits, such as QuickSwap’s today. Flash loan exploits—which occur often in DeFi—occur when a highly capitalized bad actor manipulates the price of an asset by taking out a large number of loans and then selling the borrowed money back for a profit.
The blockchain security company PeckShield disclosed the vulnerability. Etherscan data indicates that a few hours later, the hackers used the authorized currency mixer Tornado Cash to conceal the origin of the cash.
People utilize QuickSwap to trade tokens. As a DEX, it does not need registration (unlike centralized exchanges like as Coinbase) and has no intermediaries, thus anybody may use it.
QuickSwap is a fork of the Uniswap DEX, one of the most popular DeFi applications in the cryptocurrency world. But unlike Uniswap, it runs on Polygon, the blockchain that contains MATIC, the twelfth largest cryptocurrency.
Even if you’re relatively new to cryptocurrencies, you may have purchased or sold Bitcoin, Ethereum, and other assets on an exchange.
However, DEXs are susceptible to flash loans and other hacks, and there is no insurance as there would be a centralized exchange since individuals have total access to their cash.
Also Read: Israeli Stock Exchange Will Launch Cryptocurrency Trading
Wallets