Arbitrum and BNB Smart Chain Networks Growth Impacted by Recent Security Breach
The Arbitrum [ARB] and BNB Smart Chain [BSC] networks have been experiencing a steady growth in terms of active addresses for the last few months. However, a recent hack could impact this growth going forward.
Based on the data supplied by PeckShield, DEI, a stablecoin issued by DeFi protocol DEUS, fell victim to a security breach on 6 May. BSC suffered a loss of $1.3 million, while the loss incurred on Arbitrum surpassed $5 million.
How the Hack Happened
According to the data, the BSC hack was successfully front-run by a bot. “Front-running” refers to an automated program that executed trades ahead of others in the queue, resulting in financial losses for those who were affected. The bot’s successful execution of this tactic contributed to the security breach.
White Hats Act as Deus Ex Machina
In response to these attacks, DEUS secured some help from white hat hackers. White hat hackers are individuals who use their computer security skills for ethical and lawful purposes. In this context, some white-hat hackers could retrieve the funds that were lost by DEUS. These hackers would be sending the retrieved funds to a multisig owned by the DEUS team.
However, this is not the first time that DEUS’ security has been compromised. On 28 April, the DEUS network was exploited on the Fantom network for $13.4 million. This hack occurred due to flash loan-assisted manipulation of a price oracle.
If the hacks on DEUS continue to rise, it will impact not only the protocol but also other networks associated with it. These hacks could also lead to an increase in mistrust among potential users.
Were BNB and ARB Affected?
At press time, activity on the BNB chain remained unaffected. The number of transactions occurring on the network also remained stable. However, Binance’s other security vulnerabilities related to Curve [CRV] could affect BNB negatively in the future.
On the other hand, Arbitrum witnessed a decline in the number of daily active addresses over the past few days. Subsequently, the number of transactions occurring on the protocol also fell during this period.
The recent security breach on DEUS highlights the importance of strong security measures in the DeFi space. As the popularity of DeFi continues to grow, it is important for protocols and networks to prioritize security to ensure the trust and confidence of their users.
- The BSC hack was successfully front-run by a bot.
- White hat hackers helped retrieve the funds lost by DEUS.
- If hacks on DEUS continue, it could impact other networks associated with it.
- BNB activity remained unaffected but could face vulnerabilities in the future.
- Arbitrum witnessed a decline in daily active addresses and transactions following the breach.
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