The other day, a bug was found in an altcoin project. Meanwhile, Osmosis, a layer-1 blockchain on the Cosmos network, was halted Wednesday after a new bug threatened to drain the chain’s liquidity. Here are the details…
Osmosis bug reported: Altcoin price dropped
The bug in Osmosis was first mentioned by a Reddit user in Osmosis’s main subreddit. Although users initially ignored the report, they immediately changed their settings after trying it themselves. Validators stepped in to halt block production after a new bug was discovered that allowed users to get 50 percent more when withdrawing their deposits from a liquidity pool.
The network was exploited by users and threatened to drain the entire liquidity chain. However, Osmosis was able to stop its chain in time, capping its losses at around $5 million. ATOM and OSM tokens were withdrawn in the process. The protocol is the 83rd largest DeFi project in terms of total value, locked in at approximately $212.8 million, according to data from DeFi Llama.
Given the nature of the error, Osmosis had the potential to completely drain its liquidity pools. However, the damage appears to be limited to $5 million. OSMO, blockchain’s native altcoin project, dropped nearly 7 percent after the bug was reported. It seems likely that users who exploited the bug sold their stolen tokens. OSMO is changing hands at $1.06 at the time of writing. However, it was trading at $1.24 on the day. You can also see the price change in the chart below:
Aurora awarded $6 million for the vulnerability
Aurora, a blockchain bridge project, is aware of a vulnerability It paid out the second-largest prize in crypto history after being mined. A white-hat hacker named Pwning.eth discovered Aurora from an exploit in the project’s Aurora engine and notified authorities. Aurora Engine is an Ethereum Virtual Machine (EVM) built on the NEAR Protocol. It allows developers to develop and deliver applications for both NEAR and Ethereum at the same time.
Immunefi said in an announcement that the bug relates to an infinite spending vulnerability in the Aurora EVM that can be used to “create arbitrary ETH at an exponential rate.” Immunefi estimates that Aurora will lose 70,000 ETH (about $130 million) through the exploit, and $200 million in coins from other projects. But no funds were lost as the project quickly fixed the bug.
The second largest bounty in the history of cryptocurrencies
Frank Braun, Head of Security at Aurora Labs, said, “Such a vulnerability is an earlier part of [our] defense pipeline. should have been discovered at this stage.” However, he added that Immunefi’s bug bounty program is “invaluable in encouraging white hats to look at our code base and responsibly disclose bugs.” Pwning.eth received a $6 million bug bounty after alerting the project via Immunefi on April 26. The $6 million prize paid out by Aurora is the second largest ever awarded in crypto history. As Cryptokoin.com also reported, the biggest of the awards was given by Solana as 10 million dollars.
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