Exactly Protocol, a decentralized finance (DeFi) project that provides interest rates for various assets on the Optimism Layer 2 network, has been hacked by a hacker who exploited a vulnerability in their smart contracts.
Exactly Protocol Compromised $7M in Optimism Layer 2 Security Breach
The attack occurred on Thursday, August 17, 2023 and was detected by many security firms, including BlockSec and Beosin, and the Exactly Protocol team and Optimism team were alerted.
According to BlockSec, the attacker managed to withdraw over $7 million from the protocol by manipulating the interest rate calculation and overprinting tokens.
The team also advised users to withdraw their funds from the protocol as soon as possible.
While a full security audit is expected, the details of the hack have not yet been made public.
But some analysts speculate that the hacker may have exploited a reentrancy bug or a flash credit attack, which are common vectors for DeFi attacks.
The Optimism Layer 2 network is a scaling solution for Ethereum that aims to increase its speed and efficiency by executing transactions in a separate layer and periodically placing them on the main chain.
The network claims to be attractive for DeFi applications by offering lower fees and faster confirmation times than Ethereum.
*Not investment advice.
