Decentralized finance protocol Zunami Protocol is advising users not to buy any Zunami Ether (zETH) or Zunami USD (UZD) stablecoins following an attack on its “zStables” pool on Curve Finance.
On Aug. 13, Zunami confirmed on X (Twitter) that its stablecoin pool had been attacked, adding that the collateral remained safe as it began investigating the potential breach.
Please do not buy zETH and UZD at this time, their issuance has been attacked.
— Zunami Protocol (@ZunamiProtocol) August 14, 2023
Blockchain security firm PeckShield estimates more than $2.1 million was stolen from Zumani’s Curve Pool, a breach linked to price manipulation concerns. Blockchain Security Company Ironblocks Arrived in similar numbers.
Hello @ZunamiProtocol Today’s hack resulted in over $2.1 million in losses and involved two hacking transactions:
– Transaction 1: https://t.co/jsOmPT62mk
– TX2: https://t.co/u7YOvoS0R9This is a price manipulation issue and it can be exploited by donating to miscalculate the price as follows… pic.twitter.com/OfrDni7KtE
— PeckShield Inc. (@peckshield) August 14, 2023
PeckShield was one of the first companies to detect the Curve vulnerability at 10:47 UTC on August 13, which was confirmed by Zunami about 20 minutes later.
related: Curve Finance vows to compensate users after $62M hack
Zunami is a decentralized income aggregation protocol that allows users to earn income by staking stablecoins, and its largest stable pool is located in Curve. The attack affected the Zunami USD stablecoin and Zunami Ether.
Cointelegraph reached out to Zunami for comment but did not immediately hear back.
Update (August 14th at 2:09AM UTC): This article has been updated to include a recent tweet from Zunami Protocol asking users not to purchase UZD or zETH.
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