Jimbos Protocol (JIMBO), a liquidity protocol on Arbitrum, is suspected to have been hacked and more than 4,000 ETH (about $7.5 million) stolen.
According to the statement made by the crypto security company PeckShield, the hack event in question is due to the lack of slippage control of the liquidity shift, such that the liquidity of the protocol is invested in a skewed / unstable price range and used in reverse swap for profit.
After the attack, the JIMBO altcoin price dropped significantly, according to DEX data.
The altcoin developer team reported that they were aware of the attack in the message they shared after the event:
“We are aware of attacks on our protocol and are in active contact with law enforcement and security experts.
We will post more information as soon as possible.”
We are aware of the exploit regarding our protocol and are actively in contact with law enforcement and security professionals.
We will release further information when possible.
— Jimbos Protocol (v2, soon) (@jimbosprotocol) May 28, 2023
Arbitrum-based Jimbos Protocol is an attempt to create a token with a semi-stable floor price backed by a certain amount of assets. Olympus is trying to imitate some aspects of the DAO project, whose price skyrocketed before it finally collapsed, but hopes to make it more sustainable with a few changes.
The funds seized by the hacker in the attack were bridged to the Ethereum network.
*Not investment advice.
Nice