DeFi xToken protocol hacked for the second time in a year – Bits Media

The xToken decentralized finance project has been hacked for the second time in a year. The attackers found a vulnerability in the XSNX smart contract and brought tokens to $4.5 million.

The product of the XSNX project XTOKEN allows users to access assets based on Synthetix without the need to interact with complex smart contracts of the platform. After hacking, Xtoken developers said, that will make access to the product XSNX.

To make hacking, the attacker took an instant loan on the Dydx decentralized exchange in the amount 25 000 ETH ($81 million) and used these funds as security to obtain 1.5 Milln SNX tokens through AAVE and BANCOR protocols.

Tokens were exchanged for 6.5 Milln USDC through a decentralized Kyber exchange, which exerted powerful pressure on the SNX course. Then the attacker exchanged UDSC for SUSD tokens based on Synthetix, which were used to buy 614 000 SNX in the Xtoken pool for 811 000 sush. In this way, The hacker received SNX tokens worth more than $7 million.

The Xtoken team said, that there were no similar vulnerability in other products of the platform. XSNX contracts are the most difficult on the platform, And there are too many dependencies in the current sales of the product, which gives a base for various vulnerabilities. Therefore, it was decided to close this product.

“Every day we will devote to it, To restore community trust in our platform ", - the developers emphasized.

Recall, that in May of this year the Xtoken protocol was hacked in a similar way. With the help of fast loans, hackers were able to withdraw various tokens from the project for the total amount $24.5 million.