Velocore Breach: A detailed analysis
Currently, a DEX Velocore, operating on zkSync and Linea blockchains, was likely to have been hacked. It led to the loss of $10 million in user liquidity with this comment:
The Execution of the Velocore Hack
The hack occurred when Linea Blockchain, in which Velocore is based, had temporarily ceased block creation. This pause caused interruption, however, after Linea returned to its normal operation, hackers had already moved some of the stolen Ethereum (ETH) funds across chains to the Ethereum mainnet.
Immediate Response and Acknowledgment
Velocore readily validated the exploitation, noting the adverse effects on its CPMM pools. However, the DEX sought to calm its users that stable pools were still secure and the funds in the pools could safely be withdrawn.
Understanding Velocore’s Operation Model
In the zkSync Era ecosystem, it uses the ve(3,3) model to run its operations. This model was developed by Solidly and optimized by Velocore to be more efficient and secure. Also, Velocore has integrated the Protocol Owned Liquidity to enhance profitability in liquidity.
Swift Security Measures Post-Breach
Consequently, the team at Velocore began an investigation of the breach immediately after it was discovered. They named the exploit mechanism and engaged an on-chain negotiation to resolve it. The team also provided the update that work continues to identify those responsible and more information would be provided soon.
Further operations on Telos Mainnet
Though, Telos mainnet processes continued as usual, specific functions were temporarily paused. This was done as the team worked closely with the foundation to ensure that users’ funds are secure and normalcy is achieved.
Stringent Scrutiny to Strengthen Security
For the purpose of users’ safety and platform reliability, Velocore stated that the latter completed three phases of audits with independent firms Zokyo, Hacken and Scalebit.
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