• Polygon and Polygon zkEVM’s lending protocol 0VIX was exploited to the tune of $2 million by hackers.
• The attackers used a „flash loan“ to manipulate the vGHST token price oracle, causing the vGHST lending pool to become bankrupt.
• As a result, the attackers liquidated the pools, stealing their collateral.
Polygon Lending Protocol 0VIX Exploited of $2M by Hackers
The vGHST token was the target of the attack by the hackers. Multiple stablecoins, including Ethereum and Polygon’s native MATIC token, as well as Aavegotchi’s staked vGHST token, may be used as collateral thanks to this protocol. Aavegotchi is a blockchain-based game that takes inspiration from the classic Tamagotchi game.
Price Oracle Manipulation
According to PeckShield, a blockchain security and data analytics firm, the attackers borrowed $6.12 million in stablecoins in a “flash loan” to influence the vGHST lending pool on 0VIX. After using the stolen stablecoins to open vGHST lending positions, they manipulated the protocol’s price oracle—as confirmed by Blocksec, a blockchain security firm—causing GHST prices to increase 24.7% from $1.13 to $1.41 (measured by CoinGecko). This caused an immediate bankruptcy of all involved pools and allowed for liquidation of all collateral tokens held in those pools by these attackers.
Stolen Assets Returned To Ethereum
In an effort to return assets back over to Ethereum and convert any stablecoin holdings into ETH instead; Officer Notes has reported that around $1.4 million worth USDC has already been moved across along with another estimated $600K USDT also being sent out via Stargate Finance bridge protocols too throughout this same process here as well so far already today already too too!
Price Oracle Manipulation Attacks
Price oracle manipulation attacks are often used in DeFi sector are considered one of its most severe assaults possible too due mostly because it allows for manipulation of tokens who have little liquidity — such as GHST — which can then be sold off for other more valuable/liquid tokens which hold more steady values instead so far too!