Liquidity platform based on the Binance Smart Chain, Spartan Protocol, was recently drained of $30 million on the 1st of May. On the day, Spartan Protocol lost the funds in a coordinated attack on its liquidity pool.
Blockchain security company PeckShield explained the attack process. The security expert revealed that the exploiter targeted a “flawed liquidity share calculation” in the SPARTA/WBNB liquidity pool. As a result, the attacker was able to withdraw the funds. PeckShield added:
“In particular, the specific hack inflates the asset balance of the pool before burning the same amount of pool token to claim an unnecessarily large amount of underlying assets. The consequence of this attack results in more than $30M loss from the affected pool.”
Speaking on the attack, Spartan Protocol said that the “Attacker used $61m in BNB to overcome the pools via a as yet unknown economic exploit path to remove roughly $30m in funds from the pool.”
According to Rekt, the exploit on Spartan Protocol is the 6th largest in the history of decentralized finance. The other five ahead of Spartan Protocol are EasyFi ($59 million), Uranium Finance ($57,200 million), Kucoin ($45m), Alpha Finance ($37.5m), and Meerkat Finance ($32 million).
As a result of the loss, SPARTA declined 30% to $1.17.
Image Credits: Pixabay
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