Avalanche-based DeFi project ‘Zabu Finance’, which focuses on services such as yield farming and yield aggregator, reported on the 12 that it has suffered a massive fund leak of $3.2 million. The latest exploit is probably the first major hack reported in the Avalanche ecosystem.
The company has now asked for help from Avalanche and popular Avalanche-hosted decentralized exchanges such as Pangolin and Trader Joe in a series of Tweets posted by the company.
“Zabu Team Wallet has not sold a single Zabu. We’re under an exploit, possibly from Spore Pool. We’re investigating the exploit. Need help Pangolin, Trader Joe, Avalanche.”
Upon conducting an investigation Zabu reported that the hacker has reportedly stolen from its Spore Pool that included 402.9 Wrapped Ether (WETH), 23,157 Wrapped AVAX (WAVAX), 21,501 Pangolen (PNG), 106,848 Avaware (AVE), 361,267 Tether (USDT), and 23,958.93 JOE (JOE). At the time of the exploit, the total value of the above tokens was $3.2 million.
The company explained that the attacker interacted with the contract to remove 4.5 billion ZABU tokens and then unloaded them the Trader Joe’s and Avalanche Pangolin exchanges on the Avalanche network.
Zabu revealed its intention to return tokens to investors based on their balances before and after the hack and plans to take a snapshot of the situation. It wrote on Twitter:
“The process of Snapshot might take time as we need to calculate balances of Zabu Holders, Farm Stakers (for Zabu-related Pools) and AutoFarm Stakers (for Zabu-related Pools). We might need help Markr, DeBank and Avalanche.”
The company has burned the remaining ZABU tokens worth $360,000.
Recently, DeFi project xToken reported a cyberattack on 30th August, revealing a loss of nearly $4.5 million. The hacker had taken a flash loan from the dYdX decentralized exchange for 25,000 ETH (roughly $81 million) to execute the hack.