February 23, 2024

Solana-based DeFi platform Mango suffers $100 million exploit

Mango, a DeFi platform working on the Solana blockchain, suffered a $100 million exploit, CoinDesk reported, citing a tweet by blockchain auditors OtterSec. The native token of the protocol, MNGO, noticed its worth inflated exponentially. The way in which this occurred stays unknown.

At time of publication, the drained funds remained on the Solana blockchain. Binance, Coinbase, Kraken, and different centralized exchanges blacklist offending addresses in such circumstances. They have a tendency to become involved as the one platforms with ample liquidity to money out such enormous quantities.

Robert Chen of OtterSec defined the assault, he mentioned, “The [MGNO] governance token was valued for excess of it ought to be. With that, [the attacker] was in a position to take out massive loans towards it after which drain Mango’s [liquidity] swimming pools.

“It’s like a lending-borrowing race: when you’ve got overvalued collateral, you may then borrow towards that collateral, and that’s what they did.”

Mango mentioned it was taking the precaution of disabling deposits on the entrance finish and measures for third events to “freeze funds in flight.”

Mango is a decentralized cryptocurrency buying and selling platform on the Solana blockchain, which lets its customers take out loans and make spot trades. The MNGO token dropped by greater than 40% on the information.

This exploit is the second very vital DeFi assault in simply a number of days. Final week, Binance Good Chain suffered an $80 million hack.

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