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Ancilia Reports Root Cause of ParaSpace Attack

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Ancilia Reports Root Cause of ParaSpace Attack

According to reports from the Web3 network security company Ancilia, the root cause of the attack on the NFT lending protocol ParaSpace occurred in the scaledBalanceOf() function of the contract 0xddde38696fbe5d11497d72d8801f651642d62353, which is used to calculate the user’s collateral through the supply() function. However, manipulating the number of APE tokens in the function getPooledApeByShares() allows scaledBalanceOf() to return a large value. Users can own a large amount of collateral and use it to borrow more assets.

Ancilia: The root cause of the ParaSpace attack occurred in the scaledBalanceOf() function of the 0xddde3 contract

Analysis based on this information:


Web3 network security firm Ancilia has reported that the root cause of the attack on the NFT lending protocol ParaSpace occurred in the scaledBalanceOf() function of the contract 0xddde38696fbe5d11497d72d8801f651642d62353 which is used to calculate users’ collateral through the supply() function. The attacker manipulated the number of APE tokens in the function getPooledApeByShares() allowing scaledBalanceOf() to return a large value. As a result, users were able to own a large amount of collateral, which could be used to borrow more assets.

The attack on ParaSpace has highlighted the importance of secure smart contract programming. Smart contracts, which facilitate the exchange of assets and data without intermediaries, are powered by blockchain technology. However, they are also vulnerable to attacks if not properly secured.

Web3 network security companies like Ancilia offer solutions to help ensure the integrity of smart contracts. By analyzing smart contracts and identifying vulnerabilities, these companies can help developers to build more secure and resilient systems.

In conclusion, the ParaSpace attack serves as a reminder of the importance of security in the world of DeFi (decentralized finance), where millions of dollars are at stake. While smart contracts offer many benefits, they must be built with security in mind. Ancilia’s report sheds light on the need for robust security measures to prevent such attacks from happening in the future.

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