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Arkham Monitoring Discovers 0VIX Protocol Exploit on Polygon Ecosystem

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According to reports, Arkham monitoring found that the Polygon ecosystem project 0VIX Protocol has been exploited by attackers to raise vGHST prices and borrow a large amount of do

Arkham Monitoring Discovers 0VIX Protocol Exploit on Polygon Ecosystem

According to reports, Arkham monitoring found that the Polygon ecosystem project 0VIX Protocol has been exploited by attackers to raise vGHST prices and borrow a large amount of dollars. The attacker has currently transferred the USDC to the ETH main network and exchanged it for 757 ETH.

0VIX attacker has transferred USDC to ETH main network and exchanged it for 757ETH

Introduction

The cryptocurrency industry has seen various forms of financial attacks, including thefts, frauds, and hacks. The latest in line is the recent exploit on the Polygon ecosystem project, 0VIX Protocol. According to reports, Arkham Monitoring found that attackers have exploited the project to raise vGHST prices and borrow a large amount of dollars. The attackers transferred the USDC to the ETH main network and exchanged it for 757 ETH.

What is 0VIX Protocol?

0VIX protocol is built on the Ethereum network, as an open-source protocol that enables stablecoin lending and borrowing. It allows users to deposit their USDC stablecoin on 0VIX and borrow other stablecoins like vGHST, DAI, and USDT. It is the first stablecoin lending platform with zero volatility; this means that users can predict the exact amount that will be paid back, resulting in a low-risk stablecoin lending platform.

How Did the Attackers Exploit 0VIX Protocol?

The attackers took advantage of the pricing of vGHST on 0VIX and manipulated it to their advantage. They used a combination of flash loans and stablecoin swaps to raise the price of vGHST and borrow a large amount of USD. Their actions led to the price of vGHST skyrocketing, after which they exchanged it for USDC on the platform.

Consequences of the Exploit

The exploit led to the loss of a large amount of funds, and the price of vGHST on 0VIX was overinflated due to manipulation. The exploitation of 0VIX protocol is a great concern for users, as it shows that the protocol can be exploited by bad actors. This can result in users losing funds, and the entire ecosystem can face a massive blow.

Steps Taken by 0VIX to Prevent Further Attacks

Following the exploit, 0VIX immediately took steps to prevent further attacks on the platform. They paused the functionality of the vGHST pool and contacted all the stakeholders to inform them of the incident. 0VIX is also conducting an internal investigation into the matter to provide a detailed report of the incident and devise security measures to prevent further attacks.

Conclusion

The recent exploit on the 0VIX protocol is a clear indication that the crypto industry is prone to financial attacks from hackers seeking to manipulate the system for their own benefit. The exploitative actions of these attackers not only hurt users but also affect the overall ecosystem. It is critical that protocols and users take necessary precautions to ensure that such incidents don’t occur in the future.

FAQs

1. Who are the attackers behind the exploit on 0VIX Protocol?
Ans: The identity of the attackers responsible for the exploit on 0VIX Protocol is currently unknown.
2. Is 0VIX Protocol secure?
Ans: 0VIX Protocol is generally considered a secure platform, but the recent exploit shows that bad actors can exploit the protocol in certain circumstances.
3. Are my funds safe on 0VIX Protocol?
Ans: The safety of your funds on 0VIX Protocol is determined by the security measures implemented by the protocol and your personal security practices.

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