DeFi protocols Agave and Hundred Finance face exploit, lose $11M

Decentralized Finance or DeFi lending protocol projects Agave and Hundred Finance has faced a “re-entrancy” attack with the attacker making around $11 million in the form of wrapped BTC (wBTC), wrapped ETH (wETH), Chainlink (LINK), Gnosis (GNO), USD Coin (USDC), and wrapped XDAI (wxDAI)

The incident comes just 24 hours after the Deus Finance exploit was revealed, in which hackers stole over $3 million in Dai (DAI) and Ether (ETH) from the loan contract platform.

According to CoinGecko data, the value of the Agave token AGVE plummeted by 20% as a result of the attack. The HND token of Hundred Finances dropped 3.5% once the exploit was revealed. It has since recovered to reach a 24-hour peak.

Agave and Hundred Finance acknowledge the attack

Agave talked about the attack on Twitter by saying that the company is currently investigating the exploit. It went on to inform that it has halted all the contracts until the situation is resolved.

Agave is currently investigating an exploit on the agave finance protocol. We will update you as soon as we know more.

— Agave (@Agave_lending) March 15, 2022

On the other hand, Hundred Finance has also tweeted that it has suffered from the exploit on the Gnosis chain and has halted its market amid massive investigations.

Unfortunately Hundred and Agave have both been exploited on Gnosis chain today. Gnosis team is aware, investigation is ongoing.

All the Hundred markets on all chains paused for now.

These are the two transactions:
Hundred https://t.co/mdtViohijn
Agave https://t.co/RKB5MVx0O4

— Hundred Finance (@HundredFinance) March 15, 2022

DeFi raising concerns

Decentralized finance has been highly talked about its capabilities and concept, but the thing that is a matter of serious concern is the exploits it faces. Last year, crypto critic Senator Elizabeth Warren said that the DeFi is the most dangerous part of the crypto industry.

Last year in October, as TheCoinRise reported, DeFi protocol StakeSteak faced a loss of around $200,000 in an exploit. 

As per a research published by Blockchain security company CertiK, the main reason behind a large number of DeFi exploits indicates that the DeFi may not be “decentralized” enough.

Researchers found that centralization vulnerabilities were the most common attack vector inside DeFi. The blockchain security firm reported 44 DeFi assaults in 2021, totaling $1.3 billion worth of losses.