Recently took place another attack on decentralized finance (DeFi), this time perpetrated against the stable PegNet currency, a group of criminals carried out a 51% attack and was successful, at least in part, as reported on Twitter by a member of the project team.
Another milestone in the history of PegNet, being able to repel its first 51% attack. A miner generated a bunch of pAssets. But thanks to the PegNet’s safety mechanisms that prevent fast pAsset to PEG conversions they could’t dump the assets & instead decided to burn them. pic.twitter.com/TwGeMrdkvP
– David A. Johnston (@DJohnstonEC) April 21, 2020
To illustrate the attack, a developer explained how it was possible to exploit the power of the network.
Hackers basically managed to get more of the 51% of the protocol hashpower to alter 1265.79 pJPY (about $ 11) into 6.7 million pUSD, which were later transferred and converted into other stable currencies.
Was the 51% attack successful?
The criminals managed generate millions of tokens out of the blue, but it is also true that the protocol resisted, not allowing to liquidate these generated tokens, which forced the criminals to burn them, sending them to an unrecoverable address.
How reiterated PegNet, noting that its stable currency is decentralized, in this case the attack did not result in the loss of anyone's funds.
It's really scary how in the space of a week there have been a series of attacks on him sector decentralized financial system involving several entities, including dForce.
Fortunately, in many cases the funds were returned, and therefore perhaps these events can make criminals understand that it is very difficult to hack a platform and then liquidate the stolen tokens.
In the case of dForce, hackers had to return stolen funds because they were marked and in fact impossible to spend.
Furthermore, this series of events emphasizes the safety of the industry, considered by many to be too immature. DeFi needs to improve platforms and pay even more attention to how user funds are managed.