Security Agency: The root cause of 0VIX being attacked is a flaw in the price calculation of deflationary tokens

04/28/2023 12:04 • Metaverse & Beyond • 65 views

According to reports, security agency BlockSec tweeted that the fundamental reason for the hacker attack on the Polygon ecosystem project 0VIX Protocol is the flawed pricing calculation of deflationary tokens. Specifically, vGHST is the equity token of GHST, and the lending platform provides a market for vGHST (ovGHST). The ovGHST price oracle machine depends on the conversion rate from vGHST to GHST. The attacker first borrows a large amount of vGHST in contract 0x49c6 to increase the corresponding borrowing amount. Afterwards, he transferred a large amount of money to the vGHST contract. This will affect the conversion rate from vGHST to GHST. Therefore, the contract 0x49c6 becomes insolvency, and the attacker gains by clearing the contract.

Security Agency: The root cause of 0VIX being attacked is a flaw in the price calculation of deflationary tokens

1. Introduction
2. Overview of the 0VIX Protocol
3. Deflationary Tokens and Pricing Calculation
4. The Attack on the 0VIX Protocol
5. Implications and Consequences of the Attack
6. The Future of Security in the Crypto Industry
7. Conclusion
8. FAQs

Article:

Introduction

In the world of cryptocurrency, security is paramount, and an attack on any project can have significant repercussions. Recently, the Polygon ecosystem project 0VIX Protocol faced a hacker attack, which raises important questions about the underlying vulnerabilities in the blockchain technology and security measures. According to reports, security agency BlockSec tweeted that the fundamental reason for the hacker attack on the 0VIX Protocol is the flawed pricing calculation of deflationary tokens. In this article, we will explore the details of the attack and its implications for the cryptocurrency industry.

Overview of the 0VIX Protocol

The 0VIX Protocol is a decentralized lending platform that operates on the Polygon ecosystem. The platform provides users with an opportunity to earn interest on their cryptocurrency and also allows them to borrow against their cryptocurrency holdings. The platform uses a unique token called vGHST, which is the equity token of GHST, to provide liquidity to the lending platform.

Deflationary Tokens and Pricing Calculation

Deflationary tokens are cryptocurrencies that have a maximum token supply, which decreases as tokens are burned over time. The price of these tokens depends on their supply and demand in the market. The pricing calculation of deflationary tokens is done using the price oracle, which takes into account the conversion rate from the deflationary token to the base currency.

The Attack on the 0VIX Protocol

The attacker first borrowed a large amount of vGHST in contract 0x49c6, which increased the corresponding borrowing amount. The attacker then transferred a large amount of money to the vGHST contract, which affected the conversion rate from vGHST to GHST. As a result, the contract 0x49c6 became insolvent, and the attacker gained by clearing the contract.

Implications and Consequences of the Attack

The attack on the 0VIX Protocol raised important questions about the security of the blockchain technology. The vulnerability in the pricing calculation of deflationary tokens can have significant consequences for the cryptocurrency industry. The attack also highlighted the importance of having effective security measures in place to prevent such attacks in the future.

The Future of Security in the Crypto Industry

The crypto industry is evolving rapidly, and security is becoming increasingly important. The industry needs to address the underlying vulnerabilities in the blockchain technology and adopt effective security measures to prevent attacks like those on the 0VIX Protocol. The attackers are becoming more sophisticated, and the security measures need to keep pace with the changing landscape of the crypto industry.

Conclusion

The attack on the 0VIX Protocol raises important questions about the security of the blockchain technology and the underlying vulnerabilities in the pricing calculation of deflationary tokens. The cryptocurrency industry needs to address these vulnerabilities and adopt effective security measures to prevent such attacks in the future.

FAQs:

1. What is the 0VIX Protocol?
The 0VIX Protocol is a decentralized lending platform that operates on the Polygon ecosystem.
2. What are deflationary tokens?
Deflationary tokens are cryptocurrencies that have a maximum token supply, which decreases as tokens are burned over time.
3. What are the implications of the attack on the 0VIX Protocol?
The attack highlighted the security vulnerabilities in the pricing calculation of deflationary tokens and raised important questions about the security of the blockchain technology in the cryptocurrency industry.

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