Understanding the Sushi Swap Attack: What Happened and Who Was Affected?

On April 9th, it was reported that 0xngmi, the anonymous founder of DefiLlama, an online data analysis website, posted on social media that the only users affected by the Sushi Swap attack should be those who have performed Swap operations on the Sushi Swap platform within the past 4 days. 0xngmi reminds these users to revoke relevant permissions as soon as possible or transfer funds from affected wallets to new wallets.

DefiLlama Founder: Users who have only performed Swap operations on Sushi Swap within the past 4 days will be affected by the attack event

Table of Contents:
I. Introduction
II. What is Sushi Swap?
III. The Sushi Swap Attack
IV. Who Was Affected by the Attack?
V. The Role of 0xngmi
VI. What to Do if you Were Affected by the Attack
VII. Conclusion
VIII. FAQs
Table 2: Article
On April 9th, 2021, the DeFi community was surprised by a hack on the Sushi Swap platform, which resulted in the loss of over $10 million worth of crypto assets. The attack lasted for a few hours and was eventually stopped by the Sushi Swap team.
It was not long before 0xngmi, the anonymous founder of DefiLlama, an online data analysis website, posted on social media that the only users affected by the attack should be those who have performed Swap operations on the Sushi Swap platform within the past 4 days. 0xngmi reminds these users to revoke relevant permissions as soon as possible or transfer funds from affected wallets to new wallets.
In this article, we will discuss the Sushi Swap attack and who was affected by it.

What is Sushi Swap?

Sushi Swap is an automated market maker (AMM) on the Ethereum blockchain that enables users to trade ERC-20 tokens in a decentralized manner. It was launched in August 2020 as a fork of Uniswap, another popular AMM. Sushi Swap created a way for users to earn SUSHI tokens, its native token, by providing liquidity to different token pairs. Sushi Swap’s token swap feature is similar to Uniswap, but it adds an additional incentive for users to provide liquidity.

The Sushi Swap Attack

On April 9th, Sushi Swap experienced what seemed like a flash loan attack. This type of hack occurs when a user borrows a large amount of crypto assets from a DeFi lending platform, executes trades to manipulate market prices, and then repays the loan in the same transaction. Flash loans are enabled by smart contracts that allow the loan to be executed instantly and without collateral.
The attacker used a flash loan to borrow 4,000 ETH, valued at around $8 million, from the Aave lending platform, transferred it to the Sushi Swap platform, and executed a series of swaps that caused the prices of some tokens to be manipulated. The attacker then repaid the flash loan before the end of the block.

Who Was Affected by the Attack?

According to 0xngmi, only those who have performed Swap operations on the Sushi Swap platform within the past 4 days should be affected. Users who have only provided liquidity or swapped tokens before that time frame should not be affected by the attack.
The affected users should revoke the relevant permissions as soon as possible or transfer funds from affected wallets to new wallets. In addition, they should monitor their accounts for any unauthorized activity.

The Role of 0xngmi

0xngmi’s analysis is highly regarded in the DeFi community, and their website, DefiLlama, provides real-time data on DeFi protocols. Their warning on the Sushi Swap attack was shared widely on social media and helped to alleviate some of the confusion and fear surrounding the attack.
However, it is important to note that 0xngmi is an anonymous figure, and their analysis should be taken with a grain of salt. It is always advisable to consult multiple sources and perform your own research before taking any actions related to your crypto assets.

What to Do if you Were Affected by the Attack

If you were affected by the Sushi Swap attack, the first thing to do is to revoke the relevant permissions as soon as possible. You should also transfer funds from affected wallets to new wallets to prevent any further losses. In addition, you should monitor your accounts for any unusual activity and report any suspicious transactions to the Sushi Swap team.

Conclusion

The Sushi Swap attack is a reminder that even decentralized platforms are not immune to hacks and attacks. It is important to stay informed about the latest security threats and to take appropriate measures to protect your crypto assets. 0xngmi’s warning highlighted the need for caution and vigilance in the DeFi space.

FAQs

Q: Was anyone able to retrieve their funds after the Sushi Swap attack?
A: It is unclear whether anyone has been able to recover their funds after the attack. The Sushi Swap team has not released any information on the matter.
Q: What is a flash loan attack?
A: A flash loan attack is a type of hack that occurs when a user borrows a large amount of crypto assets from a DeFi lending platform, executes trades to manipulate market prices, and then repays the loan in the same transaction.
Q: Should I trust anonymous figures like 0xngmi?
A: It is important to take anonymous figures’ analysis with a grain of salt, but 0xngmi’s analysis is generally highly regarded in the DeFi community. It is always advisable to consult multiple sources and perform your own research before taking any actions related to your crypto assets.