Onyx Suffers Breach As Attacker Swaps ETH For PEPE, 'Precision Loss' Of Over $2M

Decentralized finance (DeFi) protocol Onyx recently experienced a significant security breach that resulted in the misappropriation of about $2.1 million.
According to The Block, citing blockchain security firm BlockSec, the breach was due to a specific flaw within Onyx's system, termed as "precision loss."

"The attacker took out a flash loan of a substantial amount of ETH, swapped it for PEPE, and donated it to a specific pool to manipulate the exchange rate.

Subsequently, due to the so-called precision loss, the attacker was able to withdraw more of the underlying asset by burning fewer shares," Matthew Jiang, BlockSec's Director of Security Services, said.

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Investigations reveal that the vulnerability stemmed from an older forked rendition of Compound V2, a component deeply integrated into Onyx's foundational structure.

The latest on-chain data indicates that the attacker transferred a sum of 700 Ether ETH/USD (valued at approximately $1.25 million) to Tornado Cash, a cryptocurrency mixing service.

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