**Hundred Finance Hacked: PeckShield Confirms Loss of $7 Million**

04/16/2023 18:55 • Metaverse Matters • 130 views

According to reports, PeckShield Inc. posted on social media that Hundred Finance was hacked and lost $7 million.

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In recent news, PeckShield Inc., a blockchain security company, has reported that Hundred Finance, a decentralized finance (DeFi) platform, has suffered a hack resulting in a loss of $7 million. This is a concerning development that highlights the vulnerabilities present in DeFi platforms and the need for proper security measures.

The Attack on Hundred Finance

According to PeckShield Inc., the hack occurred through a “reentrancy” vulnerability in the smart contract code of the platform. This type of attack allows an attacker to repeatedly call a function, withdrawing funds each time, without updating the balance beforehand. In this case, the attacker was able to exploit this vulnerability to drain the funds in the smart contract.
The hacker was able to steal a large amount of money from the platform’s liquidity pool, which was intended to be used for providing liquidity to decentralized exchanges. The funds drained from the pool have reportedly been sent to a “tumbler” address to make it difficult to trace.

The Impact on Hundred Finance and the DeFi Community

This hack has had a significant impact on Hundred Finance and its users. The platform has since halted all trading, liquidity provision, and deposits while it conducts a thorough investigation. Users are understandably concerned about the safety of their funds and the future of the platform.
This incident also raises concerns about the security of other DeFi platforms. While the DeFi space has seen impressive growth in recent years, security risks remain one of the biggest challenges. Decentralization and smart contract technology can provide significant benefits but also introduce new vulnerabilities.

Preventing Hacks in DeFi Platforms

The recent hack on Hundred Finance is a reminder of the importance of proper security measures in DeFi platforms. The following steps should be taken to ensure the safety of these platforms:

1. Strong Smart Contract Code

DeFi platforms rely heavily on smart contract code to execute transactions and manage funds. As such, this code must be robust and free from vulnerabilities. Code audits and testing must be conducted by experienced developers to identify and fix any issues.

2. Extensive Testing

Comprehensive testing of DeFi platforms before launch and on a regular basis afterward is crucial to identifying and addressing vulnerabilities. Various testing methods, such as penetration testing, should be used to ensure the platform’s security.

3. Multi-Layer Security

DeFi platforms should implement multiple layers of security to keep investors’ funds safe. These include two-factor authentication, cold wallet storage, and other security measures that are commonly used in the traditional financial sector.

4. Regulation

Proper regulation of DeFi platforms can help reduce the risk of hacks by ensuring platforms adhere to strict security standards. This will also help prevent fraudulent activities and scams.

Conclusion

The hack on Hundred Finance clearly highlights the need for better security measures in DeFi platforms. It’s essential that security issues in smart contract code are identified and addressed before launch or any significant funds are invested. Regular testing and multi-layer security measures can help prevent hacks, while regulation can ensure platforms remain accountable and secure for their users.

FAQs

Q1: Can the stolen funds be recovered?

At the moment, it’s unlikely the stolen funds can be recovered. The hacker has reportedly used a “tumbler” address to make it difficult to trace.

Q2: Is DeFi a safe investment?

DeFi can be a safe investment, but investors must conduct proper research and consider the platform’s security measures. Investors must also be aware of the potential risks and volatility associated with DeFi investments.

Q3: What is a “reentrancy” vulnerability?

A “reentrancy” vulnerability is an exploit in smart contract code that allows an attacker to repeatedly call a function without updating the balance beforehand. This allows the attacker to drain funds from the contract.

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