Investigating the Security Incident of DAO Maker Project Degen Zoo

04/03/2023 03:01 • AI & Tech Insights • 65 views

On April 3rd, in response to yesterday’s security incident, the official team of the DAO Maker project Degen Zoo stated in Telegram that the investigation concluded that it was possible to add an agent contract to make the code scalable. Proxy contracts allow projects to build fixed contracts and test content without stopping the game.

Degen Zoo: The project code is secure and is considering adding an agent contract to prevent further downtime checks

Introduction

On April 3rd, the official team of the DAO Maker project Degen Zoo made a statement on Telegram in response to a security incident. The statement revealed that during the investigation, it was discovered that an agent contract could have been added to make the code scalable. This agent contract acted as a proxy, allowing for the building and testing of content without interrupting the game.

Understanding the Security Incident

The security incident that occurred on April 2nd involved an attacker exploiting a vulnerability in the Degen Zoo project’s contract. The attacker was able to execute a code that deducted funds from the project’s liquidity pool. This resulted in a loss of about $3 million, a loss that the team had to bear.

Investigation

To uncover the source of the security breach, the official team launched an investigation immediately. According to their statement, they went through the code line by line and executed all the functions repeatedly to ensure that the process was foolproof. While conducting this investigation, they stumbled upon the possibility of adding an agent contract to make the code scalable.

Proxy Contracts

Proxy contracts, such as agent contracts, are used to add security or scalability to any smart contract application. They act as an intermediary between the user and the actual contract, allowing for an uninterrupted flow of data. They are particularly effective in the testing phase of a smart contract’s development. The team’s discovery of the possibility of adding an agent contract may have crucial implications for future smart contract applications.

Implications for the Future

DeFi is evolving quickly, and smart contract applications are becoming increasingly complex. As a result, security is more critical now than ever before. The discovery of the possibility of adding an agent contract has implications for future smart contract applications. It could be a significant step towards ensuring better security and scalability for smart contract applications in DeFi. This could potentially save millions of dollars in financial loss due to exploitation of vulnerabilities.

Conclusion

The security incident of the DAO Maker project Degen Zoo highlights the importance of thoroughly investigating and understanding smart contract applications’ vulnerabilities. The team’s discovery of the possibility of adding an agent contract is a crucial step towards ensuring better security and scalability for smart contract applications in the DeFi space. With the increasing interest in decentralized finance, taking incremental measures to improve security is vital.

FAQs

1. What is a proxy contract?
A proxy contract allows for an intermediary between the user and the actual contract, allowing for a seamless flow of data.
2. How can proxy contracts be beneficial for smart contract applications in DeFi?
Proxy contracts such as agent contracts can add security and scalability, particularly in the testing phase of smart contract development.
3. Why is security in DeFi becoming increasingly critical?
As DeFi evolves, smart contract applications are becoming more complex, making them more vulnerable to exploitation. Therefore, taking measures to improve security is essential to reduce financial loss due to vulnerabilities.

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