Sui Blockchain's Nemo Protocol Experiences $2.4M Loss due to Oracle Manipulation
The decentralized finance (DeFi) sector has faced another setback, as the lending platform Nemo Protocol on the Sui blockchain has suffered a security breach. Approximately $2.4 million was drained from Nemo Protocol, according to reports.
The breach appears to be due to a price oracle manipulation, according to security firm CertiK. The perpetrator, known as "wstolz," is believed to have exploited faulty pricing data on Nemo's lending markets. Activity logs on SuiScan confirm a series of quick transactions that moved funds out of the protocol.
This incident underscores the need for improved security measures as the Sui blockchain grows. Oracles remain a vulnerable point in the DeFi sector, with hackers manipulating wrong prices to drain funds, as seen in previous attacks.
The focus is now on Nemo Protocol to address the security breach and protect users. This comes just two days after the Venus Protocol suffered a phishing scam that drained $13 million from a user's wallet. The phishing incident on Venus Protocol has shifted the focus towards ensuring the safety and security of DeFi platforms.
The attack on Nemo Protocol is one of several recent attacks on the DeFi sector. On September 4, decentralized exchange Bunni admitted to a rounding error in its smart contract that was exploited, costing the platform $8.4 million. More details about the Nemo Protocol breach are anticipated as the story develops.
No detailed update has been shared by Nemo Protocol regarding the recovery of funds and user protection measures. The incident serves as a reminder of the importance of robust security in the DeFi space. As the Sui blockchain continues to grow, addressing these security issues will be crucial for maintaining trust and confidence in the ecosystem.
In a separate incident, hackers used EIP-7702 to rob WLFI token wallets, as reported by Xian. The DeFi sector remains a target for cybercriminals, and ongoing vigilance and improvements in security measures are essential to protect users and their assets.
As the investigation into the Nemo Protocol breach continues, the DeFi community will be watching closely to see how the platform responds and takes steps to prevent future attacks.
