The post Bedrock DeFi hacked for $1.7M uniBTC through smart contract exploit appeared on BitcoinEthereumNews.com.

Bedrock DeFi, a Bitcoin-based DeFi protocol with a wrapped asset, was drained of $1.7M. The theft of uniBTC happened just a day after an attack against Onyx Finance.  Bedrock DeFi was exploited for $1.7M in uniBTC, as the restaking pool was drained through a smart contract exploit. After researching the attack, Bedrock shut down the problematic smart contract, avoiding further exploits. The hacker was able to mint uniBTC with no limits, potentially exposing all related pools and trading pairs. The exploit was initially discovered by the Dedaub analysis team, who immediately tried to contact Bedrock developers. However, less than three hours later, another attacker applied that knowledge and created excess uniBTC. Bedrock DeFi announced that the exploit only affected uniBTC, another tokenized form of BTC. The underlying reserves remain safe, and the protocol has resolved the issue. The platform holds more than $243M in assets staked from various networks, including Bitcoin and Ethereum. Bedrock DeFi aimed to offer multi-chain liquid re-staking, where idle assets could earn passive income.  The tokenized uniBTC asset is an ERC-20 contract on the Ethereum chain. The wrapped BTC is held in 3,552 addresses and has a total market cap of $75.4M. Soon after the exploit, some of the decentralized pairs saw extraordinary action.  Versions of uniBTC exist on a total of eight networks, and some protocols like Pendle have exposure up to $30M to the asset, tied with Corn protocol. A similar vulnerable contract for minting uniBTC was creating threats on Ethereum, Binance, Arbitrum, Optimism mainnet, Mantle, Mode, BOB, and ZetaChain. Researchers from Dedaub warned Pendle, which saved most of the value locked from being exploited as exit liquidity. The uniBTC hack caused some contagion on decentralized exchanges. One of the Uniswap V3 pools saw the price crash to $17,889.15, while another pair traded at…

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Filed under: News - @ September 27, 2024 1:23 pm