Decentralized Exchange DODO Hacked For $3.8 Million, Token Price Falls Only 2%

·2 min read

Decentralized exchange and liquidity provider DODO was hacked earlier today, resulting in a loss of funds amounting to $3.8 million.

What Happened: According to reports from DODO, several V2 Crowdpools were attacked, whereas all V1 and non-Crowdpool V2 pools remained safe.

The impacted pools included WSZO, WCRES, ETHA, and FUSI pools, while AC pool funds have been fully recovered, according to DODO.

As a precautionary measure, the exchange temporarily disabled the pool creation portal while stating on Twitter that they were working closely with their security partner to recover the lost funds.

In an update about the recent events on the protocol's website, DODO later stated that they expected $1.88 million of the stolen funds to be returned.

The hack in question took place as a result of an exploiter creating a counterfeit DODO token by manipulating a bug in DODO’s V2 smart contract Crowdpool.

Why It Matters: The DODO protocol’s native token DODO rose over 96% in a single day on February 18 after announcing it would soon be launched on Binance Smart Chain (BSC).

Many in the crypto community were optimistic about the project that was launched back in August 2020. The protocol raised a $600,000 seed round led by Framework Ventures, after which it raised an additional $5 million in a private sale funding round led by Three Arrows Capital, Binance Labs, and Pantera Capital.

The protocol also attracted investment from bigger investors like Coinbase Ventures, Galaxy Digital, and Alameda Research.

Despite today’s exploit on the DeFi protocol, its native cryptocurrency token has remained relatively stable, and at the time of writing, DODO was trading at $3.94, down by a little over 2.55% at midday (ET), but was already up 1.17% to $4.09 at press time.

The token’s price movements, along with several members of the community declaring their support for the decentralized exchange (DEX) suggests that this exploit had a relatively low impact on the DODO exchange.

Image: Courtesy of DODO

See more from Benzinga

© 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.