Velocore Hack Results in Loss

Velocore Hack Results in Loss of $10 Million from User Liquidity Pools

Velocore Breach: A detailed analysis

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the DEX sought to calm its users that stable pools were still secure and the funds in the pools could safely be withdrawn.

DEX Velocore hack

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

Disclaimer: The information provided by CryptopianNews is for educational and informational purposes only. It should not be considered financial or investment advice. Cryptocurrency markets are highly volatile and speculative, and investing in them carries inherent risks. Readers are advised to conduct their own research and consult with a qualified financial advisor before making any investment decisions.

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