The latest crypto project Jimbos Protocol has recently become a victim of a cyber attack causing it to incur a considerable loss of 4,090 Ethereum ($7.5 M) only 3 days following the release of its V2. According to Cointelegraph, as a result of the burgeoning DeFi in the market, the attack on Jimbos Protocol – causing it to incur substantial financial loss – is one of the best and latest examples of hacking.
According to reliable sources, the attack took place in the wake of having no security installed in the liquidity exchange systems. Experts surmise that the Protocol’s liquidity is invested in a price range that can create ambiguity for hackers and urge them to rescind swap orders to gain a profit.
Whatever it is, hackers exploited a $5.9M uncollateralized loan — where tokens are temporarily taken and repaid right away — to launch and execute the attack.
The Protocol recently tweeted that considering the Protocol, they have comprehensive knowledge of the exploit and are already in touch with officials hired to uphold the laws and security. They will give an update on the matter when they have.
Jimbos Protocol is fundamentally based on the Arbitrum – a layer-2 innovative scaling solution. The nitty-gritty of designing such a protocol is to create a token having a bit varying floor cost supported by a certain number of assets.
It sets about taking a few aspects of the Olympus DAO project, which are appreciated in terms of price prior to breaking down ultimately. With certain singular features added to it individually, Jimbos Protocol is expected to enhance its sustainability. The essence is to tap the project’s cash flow feature to endorse its price along with taxes and bonuses.
On May 16, the Project was released, but it happened before long when a smart contract bug cropped up and impeded the functioning of the Protocol as guessed. Users were asked to stop considering Version 1 for any further use and await Version 2 until its release. Following the current exploit of V2, the token’s value has depreciated from $0.24 to $0, as reported by the DEX TraderJoe.
On the official website of the Jimbos Protocol, they mention that such types of mechanisms are typically rather data-based. Also, agreements they enter into generally lack an audit and, irrespective of the amount users invest in the Protocol, are very likely to be lost in the wake of unexpected circumstances at whatever time.
Only a few days ago today, a notable crypto investor DCF God, gave a mention of the purchase of a few Jimbo tokens prior to taking note of the fact that it did not have the key feature for which he purchased them on purpose. Today he took notice of it and tweeted his disappointment.