EraLend, a decentralized lending platform, was hacked and lost $3.4 million worth of cryptocurrency. The exploit occurred on July 25, when an attacker exploited a vulnerability in the smart contract that handles the deposits and withdrawals of the platform. The hackers were able to withdraw more than the amount they deposited, draining the liquidity pool at EraLend.
The team behind EraLend confirmed the incident on Twitter and said they are working on a post-mortem report and a compensation plan for the affected users. They also said they have contacted law enforcement agencies and blockchain security firms to track down the hackers and recover the funds.
EraLend is one of the many DeFi projects that have been targeted by hackers in recent months. According to a report by CipherTrace, DeFi-related hacks accounted for 76% of the total crypto thefts and hacks in the first half of 2021, totaling $361 million. The report also warned that DeFi protocols are vulnerable to smart contract bugs, flash loan attacks, and phishing scams.
DeFi users are advised to exercise caution when using new and untested platforms and to do their own research before investing in any project. They should also keep an eye on security audits, bug bounties, and governance mechanisms of the platforms they use