DEX-based Skyward Finance faces exploitation worth 1.1 million Near Protocol tokens | The Financial Express

DEX-based Skyward Finance faces exploitation worth 1.1 million Near Protocol tokens

According to Cointelegraph, the news was released on Twitter by Sanket Naikwadi, community moderator, Aurora Labs

DEX-based Skyward Finance faces exploitation worth 1.1 million Near Protocol tokens
It is believed that Naikwadi warned SKYWARD Token holders to redeem or swap their tokens whenever possible, and no longer ensure interaction with Skyward Finance

Skyward Finance, an initial decentralised exchange (DEX) offering (IDO) which permits fair token distribution for projects on the Near protocol, has reportedly faced exploitations worth 1.1 million Near Protocol tokens, which was estimated at three million dollars, as reported by Cointelegraph.

According to Cointelegraph, the news was released on Twitter by Sanket Naikwadi, community moderator, Aurora Labs, who mentioned about the exploit being first noticed by a member of the Near Protocol community, who goes by the handle Nearscout.

On the basis of information by Cointelegraph, going by tweets around the exploit, Ref Finance, a community-based multi-purpose decentralised finance (DeFi) platform created on the Near Protocol and the Skyward group were notified of the loss. Reportedly, the exploiter conducted the drain through purchase of skyward tokens on Ref Finance, which were redeemed through treasury on Skyward Finance. It is believed that Naikwadi warned SKYWARD Token holders to redeem or swap their tokens whenever possible, and no longer ensure interaction with Skyward Finance.

Moreover, Cointelegraph noted that exploits around the DeFi ecosystem have been increasing. Blockchain analytics firm Chainalysis in recent developments coined October, 2022, as “the biggest month in the biggest year ever for hacking activity.” On October 12, 2022, the publication reported that $100 million worth of cryptocurrency was stolen from Solana-oriented DeFi exchange Mango Markets, which resulted in the token’s price falling by 52%. On the same day of Mango Markets’ exploit, TempleDAO was also exploited for two million dollars.

(With insights from Cointelegraph)

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First published on: 03-11-2022 at 16:49 IST