Level Finance Exploited for $1 Million
A Binance Smart Chain (BSC)-based decentralized finance (DeFi) protocol, Level Finance (LVL), recently experienced a security breach leading to a $1 million exploit. PeckShield, a top blockchain security firm, first identified the issue, which targeted a vulnerability in the Level Finance Referral Controller Contract.
PeckShield Discovers Vulnerability
PeckShield discovered a loophole in the smart contract responsible for managing referral bonus claims on the network. The vulnerability allowed repeated referral bonus claims from the same epoch, enabling the hackers to drain 214,000 LVL tokens from the protocol. They subsequently exchanged the stolen tokens for 3,345 BNB worth roughly $1 million.
Level Finance Confirms Attack
Level Finance acknowledged the attack shortly afterward, assuring users that the exploit did not affect any other smart contracts. The team stated that the Level Finance DAO treasury and LPs remain secure, and they plan to fix the vulnerability within 12 hours.
LVL Token Price Declines
As a result of the security breach, the price of Level Finance’s native LVL token has fallen by 10% in the last 24 hours, trading at $7.7. The token’s market cap stands at $43,618,277, with a 24-hour trading volume of $24,056,146. While LVL is down 31.14% from its all-time high achieved on April 14, it has still grown over 10,000% from its all-time low reached in January 2023, according to CoinGecko.
Moving Forward after the Security Breach
The Level Finance exploit serves as a reminder of the importance of robust security measures in the DeFi space, particularly for emerging protocols. While the team is working swiftly to fix the vulnerability, investors and users must remain vigilant and prioritize the safety of their funds. It is crucial for DeFi platforms to continually assess and strengthen their security infrastructure to prevent future breaches and maintain users’ confidence in this rapidly evolving ecosystem.
