Leading Solana decentralized exchange Raydium saw some of its liquidity pools drained of their funds today after an attacker gained special authority over the protocol’s smart contracts.
Solana decentralized exchange Raydium has just suffered an exploit.
According to Solana swap aggregator Prism, which first noticed the hack, earlier today an entity began draining liquidity pools on Raydium using an admin wallet. Security firm OtterSec later hypothesized that the attacker somehow gained access to private keys granting access to Raydium smart contracts.
It’s still unclear how much was drained from Raydium liquidity pools. However, at the time of writing the attacker still had over $1.4 million in their Solana wallet, mostly in SOL and stSOL tokens. The exploiter also bridged over a significant portion of the funds to Ethereum, and sent more than 2,090 ETH (worth roughly $2.5 million) through privacy protocol Tornado Cash.
The Raydium development team announced on Twitter that it believed “owner authority was overtaken by [the] attacker,” confirming Prism and OtterSec’s analyses. This authority has since been revoked; however, Raydium has yet to publish a proper post-mortem, or officially declare the attack over.
Despite suffering the exploit, Raydium still boasts of multiple liquidity pools with millions of dollars worth of liquidity, including its RAY-USDC, SOL-USDC, RAY-SOL, RAY-USDT, and USDT-USDC pools. Data from DeFiLlama indicates that the protocol still holds over $34.7 million in assets. It’s therefore unlikely for the hack to have been fatal to the project.
Raydium’s native token RAY is currently down over 10% on the daily.
This story is developing and will continue to be updated.
Disclaimer: At the time of writing, the author of this piece owned BTC, ETH, and several other crypto assets.
The information on or accessed through this website is obtained from independent sources we believe to be accurate and reliable, but Decentral Media, Inc. makes no representation or warranty as to the timeliness, completeness, or accuracy of any information on or accessed through this website. Decentral Media, Inc. is not an investment advisor. We do not give personalized investment advice or other financial advice. The information on this website is subject to change without notice. Some or all of the information on this website may become outdated, or it may be or become incomplete or inaccurate. We may, but are not obligated to, update any outdated, incomplete, or inaccurate information.
You should never make an investment decision on an ICO, IEO, or other investment based on the information on this website, and you should never interpret or otherwise rely on any of the information on this website as investment advice. We strongly recommend that you consult a licensed investment advisor or other qualified financial professional if you are seeking investment advice on an ICO, IEO, or other investment. We do not accept compensation in any form for analyzing or reporting on any ICO, IEO, cryptocurrency, currency, tokenized sales, securities, or commodities.
See full terms and conditions.
Solana has faced many challenges this year, but Breakpoint’s Games Day showed that the Solana GameFi ecosystem has huge potential. Solana’s Rocky Year If last year’s Breakpoint conference was an...
FTX and Alameda, which appear to be collapsing, are dragging the entire Solana ecosystem down along with them, with data suggesting that chain users are now rushing to the exit....
Solana’s Mango Markets and Solend have both come under attack in recent weeks. Solana DeFi Attacked Again Another Solana DeFi protocol has been exploited. Solend, a lending and borrowing protocol...