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Hundred Finance Suffers $7 Million Loss in Optimism Hack – Here’s What Happened

Last updated: | 2 min read
Source: AdobeStock / Tomasz Bidermann

Multi-chain lending protocol Hundred Finance has fallen victim to a hacking attack which enabled the theft of about $7 million worth of crypto. 

The attacker accessed the funds via Optimism, an Ethereum layer-2 blockchain. 

“Once again we hope the hacker will reach out back to us, and we will be able to find a joint solution to resolve this matter,” the protocol said in a tweet

In a subsequent statement, Hundred Finance’s staff tweeted they had “sent a message to the hacker and are in talks with different security teams.”

“Main focus is to establish coms with the hacker, reach an agreement,” according to the protocol. 

Researchers investigate latest attack

The protocol has also announced that the “team is preparing a post-mortem” concerning the breach. 

“In parallel, we are gathering all information available in order to have that handy for possible further steps,” Hundred Finance said. 

In the meantime, in another tweet, the protocol offered some suggestions with regard to the vulnerabilities that were exploited to carry out the hack. 

“If you are a Compound V2 fork and we or our frens are not in contact with you already, please reach out so we share the information on the hack since it is a general flaw in the code and not specific to Hundred deployment,” according to Hundred Finance. 

In reaction to the latest development, decentralized finance (DeFi) risk-based insurance and reinsurance protocol Uno Re has reached out to the protocol, offering Hundred Finance’s team its “assistance with tracing the funds and implementing security measures to mitigate potential risks in the future”. 

Jaskanwar Singh, Uno Re’s co-founder, tweeted that a member of the company’s team “is actively tracing funds” in relation to the attack. 

Hundred Finance says it was launched on Ethereum’s Kovan testnet in late-June of 2021. 

After a two-month period of testing, the protocol was subsequently soft-launched on the Ethereum mainnet in anticipation of the generation of the protocol’s native HND token. 

“With the platform and token up and running, the fully-enabled Arbitrum version of the Hundred Finance dApp was deployed and the distribution of HND began,” according to the protocol. 

“In December of 2021, a vote-escrow governance token mechanism was implemented using contracts developed by Curve Finance. This addition facilitated direct community involvement in the emission of HND through”.

Hundred Finance says that the distribution of the HND token is ongoing “as the broadening of the ownership of our governance token and the platform’s usage” are the protocol’s focus.