Zunami Protocol Has Its zStables Compromised due to Curve Finance Attack

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Decentralized finance is continually evolving, with increased opportunities and risks. Recently, the Zunami Protocol, a prominent DeFi player, experienced an unsettling security breach on its zStables pools on Curve Finance.

Zunami Issues Critical Advisory to Users

In a pressing advisory, Zunami Protocol urgently cautioned its users against purchasing its two stablecoins: Zunami Ether (zETH) and Zunami USD (UZD). It was a direct consequence of a detected attack on its zStables pools.

On August 13th, Zunami officially acknowledged the attack on its Twitter account. The collateral is secured while the protocol thoroughly investigates the potential vulnerability. Users may continue to see unusual price movements regarding zETH or UZD for the foreseeable future. It is unclear if and when things will return to normal for Zunami users. 

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The blockchain security powerhouse, PeckShield, approximated a staggering $2.1 million loss from Zunami’s Curve Pool. Intriguingly, their analysis points to an underlying price manipulation issue. Validating this estimate, Ironblocks, another blockchain security expert, presented similar figures.

Prompt Detection and Confirmation

The proficiency of PeckShield is evident in its swift detection of the exploit on Curve. This revelation came to light on August 13 at 10:47 UTC. Zunami’s prompt confirmation followed merely 20 minutes post this disclosure.

For those unfamiliar, Zunami operates as a decentralized revenue aggregator protocol. It facilitates users in staking stablecoins for lucrative yields. Notably, its paramount stable pools are strategically located on Curve. The recent attack, unfortunately, negatively influenced both the Zunami USD stablecoin and Zunami Ether.

As decentralized finance advances, it’s imperative to stay vigilant and informed. The Zunami Protocol’s incident underlines the significance of continuous monitoring, robust security frameworks, and transparent communication. A clear understanding of the landscape and potential threats can foster informed decision-making for users and investors alike.

Unfortunately, it seems incidents like these have become the norm. Decentralized finance is a novel industry, but it’s list of issues grows daily. 

None of the information on this website is investment or financial advice. CryptoMode is not responsible for any financial losses sustained by acting on information provided on this website.