Double Blow for Decentralized Exchanges: Another Hack Raises Concerns

Two prominent decentralized exchanges, Velodrome and Aerodrome, faced a second cyber onslaught within three days, heightening anxieties over the extent of the damage incurred.

Velodrome and Aerodrome: Repeated Attacks

In an unexpected turn of events, both Velodrome and Aerodrome, decentralized cryptocurrency exchanges operating on Optimism and Base, disclosed a renewed assault on their platforms, merely days after acknowledging a prior breach.

Domain Vulnerability Strikes Again

The assailants exploited domain vulnerabilities, echoing the tactics used in the previous attack. Confirming the reclamation of their domains, both exchanges promptly issued warnings to users. The familiar message across their respective accounts conveyed, “It looks like our provider has been hacked again,” urging users to refrain from engaging with the compromised websites.

Swift Resolution and Reassurances

Fortunately, the exchanges swiftly addressed the issue, emphasizing that the domains were restored and secured at the top-level domain (TLD) while awaiting transfer to a more secure provider. Importantly, they assured users that their decentralized frontend remained uncompromised throughout the incident.

Common Ground: Porkbun's Role

Domain records indicate that both Velodrome and Aerodrome had their websites managed by Porkbun, the domain registrar.

Divergence and TVL Dominance

Despite sharing a similar fate, Aerodrome, operating on the Ethereum Layer 2 network Base, asserted its independence from Velodrome, which functions on the Ethereum L2 OP+ Mainnet (previously known as Optimism). Notably, DefiLlama's data reveals that each exchange holds the position of the largest exchange in its respective network, measured by Total Value Locked (TVL).

Uncertain Impact on User Assets

The true impact of these successive attacks on user assets remains shrouded in uncertainty. Blockchain researcher ZachXBT estimates that the cumulative effect could extend beyond $100,000 in affected funds.

These recurrent attacks underscore the vulnerability of decentralized exchanges, raising concerns about the security measures in place. Users are urged to exercise caution as the exchanges work to fortify their platforms against future threats.