In the face of continual cyber-attacks on the DeFi space, Visor Finance has been added to the list of victims.
The active liquidity decentralized management protocol has suffered an attack for the second time this year. A total of $8 million was carted away by the attack’s perpetrators.
The revelation came in an announcement that the DeFi protocol team released on Dec 21 on Twitter social media. The tweet informed the general public that its staking contract had been breached and exploited by hackers but that the Protocol would refund users’ losses.
About an hour after the initial announcement, the team released another statement promising the implementation of token migration to mitigate losses suffered by its users. The migration will be based on the system’s records before the hack.
Not The First Time
After initial investigations had been completed, the Protocol revealed its initial results. It stated that a nefarious scheme targeted its smart contracts with the aid of a flaw in its staking contract. The malicious smart contract stole approximately 8,812,958 VISR tokens worth of staking contracts. This was equivalent to about $8.1 million as at the time of the attack.
The presence of a previously unknown loophole in the staking contract’s framework facilitated the user-created trojan contract to manipulate the framework’s transfer policies and subsequently empty the staking pool.
Even though it seems like administering medicine after death, the Protocol has revealed that it is auditing its contract, and its new and upgraded contracts will be rolled out shortly.
According to info from the team’s spokesperson, the Protocol will now be replacing its old VISR token with a new one. The replacement has begun, and the Protocol will compensate users 1:1 with the new token. The new token has already been listed on some exchanges by the Protocol, and it is working to extend further the number of exchange sites that will list it, the blog post revealed.
This attack is not the first attack that the Protocol’s staking contract has experienced. Earlier this year in June, a hacker obtained access to some of its admin functions, resulting in a $500,000 loss of liquid funds.
Effect Of Exploit On The VISR Token
In a similar fashion to its post-attack behavior in June, the VIST token has lost almost all of its price value and currently trades at multiple decimals zeroed value.
Hours before the attack, the VISR token was trading buoyantly at $0.93, according to Coinmatketcap. It has since lost over 97% of its price value and now trades at approximately $0.02, which is a far cry from its all-time high price of $4.11.
The attack on the DeFi protocol is the second high-profile attack that the DeFi sector in the crypto industry has seen in this month alone.
In December, attacks on Pizza DeFi, Badger DAO, MonoX DeFi, and Grim Finance all suffered attacks. A total of $171 million have been lost by the DeFi organizations, a testimony to the fierce battle that DeFi firms fight against targeted exploitations in the cryptocurrency DeFi backspace.