The Velocore hack resulted in a $10 million loss for the liquidity pools of users

DEX Velocore, which operates on the zkSync and Linea blockchains, is investigating a potential attack that resulted in the loss of $10 million in user funding.

Reportedly, a suspected attack has caused the loss of almost $10 million worth of user liquidity on Velocore, a decentralized exchange (DEX) that operates on the zkSync and Linea blockchains.

The Velocore hack happened when the Linea blockchain, where Velocore runs, temporarily ceased block generation, creating an interruption in operations. Hackers were able to move some of the stolen Ether (ETH) to the Ethereum mainnet, even though Linea is back to normal again.

It acknowledged the substantial effect on its CPMM pools and verified the exploitation in response to the Velocore breach. Users may rest easy knowing that stable pools were unaffected and may continue to withdraw cash as usual, according to the DEX.

The AMM DEX’s Velocore project is based on the zkSync Era environment and runs on the ve(3,3) paradigm. Solidly first presented the concept of liquidity, which is known as Ve(3,3). Velocore, on the other hand, has enhanced user efficiency and security by overcoming the limits that Solidly faced. Velocore also optimizes liquidity profitability by using the Protocol Owned Liquidity mechanism.

Quickly recognizing the exploit method, the Velocore team launched an investigation and put an on-chain negotiating procedure in place to fix the problem. Additionally, they promised users that they would soon offer additional details on their continuing attempts to apprehend the culprits.

In the meantime, the team is working with the foundation to restore regular operations and protect user money. While certain capabilities are temporarily suspended, activities on the Telos mainnet are unaffected.

In order to guarantee user safety and platform integrity, the exchange claims that it has been through three rounds of thorough audits by respected businesses, including as Zokyo, Hacken, and Scalebit.

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