Sumary of Zabu Finance Suffers First Big Exploit in Avalanche Defi, Loses $3.2 Million:
- Zabu Finance, a decentralized yield farming protocol on Avalanche, suffered the first big hack related to the chain.
- The protocol was the victim of an exploit that allowed an attacker to steal $3.2 million in tokens, according to reports.
- The attack had its root in a pool of a token called Spore, which allowed the attacker to mint over 4.5 billion of the native token of the protocol (Zabu).
- The tokens were then dumped in other defi trading protocols leveraging Avalanche, like Pangolin and Trader Joe.
- The exchange quickly opened withdrawals to allow users to take their funds from the platform to minimize the risk of these assets.
- However, the protocol quickly presented a plan to reimburse users for their losses.
- The protocol already is rebuilding its farming protocols, and it plans to launch NFT that represents the debt to each protocol.
- It declared: Affected Stakers will get airdrop NFTs, that are the representation of the compensation rights and we use protocol revenue to buy them back later.