Rising star blockchain project, Stars Arena, today reports a significant security vulnerability within its platform.

According to Defillama, approximately $2.9 million worth of Total Value Locked (TVL) has been siphoned from the platform's smart contract.

Re-Entrancy Attack

Initial findings from blockchain monitoring platform Peckshield point towards a reentrancy attack on Stars Arena's "Shares" contract.

This exploit manipulates the share/ticket issuance process, inflating the value of one share to around $274,000 in $AVAX tokens.

As of the time of this report, Stars Arena is actively investigating the situation and has issued a caution to its users, advising them against depositing any funds.

Second Wave of Attacks

This reentrancy attack comes hot on the heels of the SocialFi platform patching a smart contract vulnerability just one day prior.

The team reported an ongoing heist that had allowed hackers to drain nearly $2,000 from the contract address.

The exploit took advantage of a vulnerability that allowed them to exchange zero shares for AVAX.

This effectively draining funds from the protocol's contract address.

Despite that, the team at Stars Arena was able to recover fairly quickly, posting a triumphant message on the X.

Rapid Growth

Coinlive previously reported on Stars Arena's rapid ascent in the world of decentralised applications (dApps) on the Avalanche network.

DappRadar confirms that the platform achieved a TVL of just over $1 million within a mere two weeks of its launch.

This success has had a significant impact on Avalanche network transactions, witnessing a substantial surge.

Transaction numbers escalated from nearly 200,000 on October 1st to over 570,000 by October 4th, as evidenced by the Avalanche explorer.