DeFi hackers strike again as they exploited $20 million in Pickle Finance. Earlier today, the DeFi protocol’s DAI PickleJar was reportedly hacked.
The team is currently looking into the matter. Further updates will be provided soon. In the meantime, they advised their network participants to withdraw.
We’re encouraging all LPs to withdraw their funds from the Jars until the issues have been resolved.
— Pickle Finance 🥒 (@picklefinance) November 21, 2020
Specifically, someone drained Pickle Finance’s DAI jar. Here, the DeFi hackers stole cDAI tokens. Compound issues these tokens after the DeFi protocol deposited DAI.
To clarify, Pickle Finance provides an automatic solution for moving funds between various DeFi protocols in order to maximize profits. Hence, they require fund deposits in Compound for trading and arbitration.
DeFi hackers transferred Pickle Finance’s funds to this crypto wallet address. As a matter of fact, DeFi protocols getting hacked is not new anymore. Some claim that exploits like this are another way of saying “exit scam in the world of DeFi”. Moreover, investors are advised to proceed with caution as DeFi projects seem like “ICO 2.0”.
Stani Kulechov, Founder and CEO of Aave and ETHLend, shared his thoughts about the recent hack:
$Pickle another reminded how difficult it is to build safe DeFi. Stay safe frens.
As a result of the DeFi hack, Pickle Finance’s token value dropped to over 50%.
Regardless of what happened, Onchain Capital Founder Ran Neuner believes that “every hack, every exploit makes DeFi stronger.” In addition, he showed his unwavering support to the DeFi project.
Pickle is a good protocol with a strong community. It will bounce back!