Security firm Dilation Effect has reported a security vulnerability in the Prime Protocol. According to Dilation Effect, the vulnerability in the cryptocurrency platform could put users’ funds at risk. Prime Protocol has yet to make a last-minute statement on the subject.
Prime Protocol has announced that funds are not in danger!
A spokesperson for cryptocurrency platform Prime Protocol issued the following statement on Twitter:
We are aware of some recent communications regarding certain functionality in our agreements. We want to be open. This isn’t a vulnerability that would allow a bad actor to seize other people’s funds from the protocol at any point. We take immediate action to address concerns. We will also provide a comprehensive explanation when the solution is complete.
A security firm has reported a bug in its cross-chain brokerage Prime Protocol. The firm also noted that it is possible for this error to raise TVL and put users’ funds at risk. Decentralized finance (DeFi) is often the victim of various hacks and thefts. Therefore, open source code also helps to discover certain vulnerabilities.
Is there a security vulnerability in the cryptocurrency platform?
According to security firm Dilation Effect, it’s possible that a feature in Prime Protocol is putting users’ funds at risk. The security firm claims that after users complete an approval process, anyone can deposit their approved crypto into the protocol’s credit pools.
Source: TwitterAccording to experts, the vulnerability is not a critical error. However, it is possible for the DeFi protocol to be abused to raise the locked total value (TVL). According to DefiLlama, Prime Protocol’s TVL is worth $1.3 million.
Meanwhile, besides TVL, the funds of additional users are at risk if the cryptocurrency platform is attacked. This is because hackers have the opportunity to deposit approved crypto into the credit pool. Thus, they get opportunities to steal additional funds. According to the official website, security firms Veridise and Ackee Blockchain audited the security of Prime Protocol.
Bridgeless cross-chain token transfers from Prime Protocol
Prime Protocol, a decentralized finance-based (DeFi) parent brokerage firm, has released an asset-based lending service that aims to eliminate the need for cross-blockchain token transfers, according to a press release last week. The protocol seeks to make the movement of crypto tokens between Blockchains more secure. For this, it aims to eliminate the need for token bridges, wrapped and swapping.
The protocol will allow users to borrow against the value of entire asset portfolios on a variety of supported blockchains, including Moonbeam, Ethereum, Arbitrum, and Avalanche, without the need for token bridges. Token bridges that carry cryptocurrency tokens from one Blockchain network to another are at risk of exploits, potentially causing users to lose their crypto to hackers. Blockchain security firm Chainalysis estimates that over $2 billion was lost in cross-chain bridge attacks last year.
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