Steadefi, a decentralized finance app, was hacked resulting in a loss of $1.14 million, which was made possible after compromising the DeFi protocol’s deployer wallet that also controls all the app’s vaults and lending pools. The Steadefi team is reaching out to the culprits to retrieve the lost assets.
The team used X (formerly Twitter) to notify its followers about the exploit that took place earlier today. The team analyzed on-chain data and found out that the perpetrator moved all lending and strategy vaults’ ownership under their control, then utilized these wallets to maximize borrowing from the lending pools.
After conducting a comprehensive analysis of the exploit, it was discovered that the hacker successfully depleted the lending capacity on Arbitrum and Avalanche networks. Subsequently, the hacker converted the exploited assets to ETH and transferred them to the Ethereum network using a bridge. The Steadefi team assured that the exploit did not impact the depositor vaults.
Aside from the fund theft, the hacker also halted the contracts of Steadefi’s farms, resulting in users being unable to withdraw their tokens from all the affected farms within the DeFi protocol. The Steadefi team sent a message on-chain to the hacker, offering a 10% reward as a bounty if the remaining funds were returned to the protocol.
The Steadefi team sent a warning to the hacker, stating that if they choose not to participate in the voluntary return of the funds, they will extend the offer of the 10% bounty to the general public. The reward will be given to anyone who can identify the hacker, leading to their conviction in court.
The exploit and theft of funds raised concerns within the Steadefi community, with some members speculating that it could have been an inside job. There were suspicions that the core developers of the DeFi protocol intentionally orchestrated the event.
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