Loading...

Decentralized exchanges Velodrome and Aerodrome warn users of DNS attack

DNS

Most read

Loading Most Ready posts..

TL;DR

  • Velodrome and Aerodrome warned users of a DNS attack that could steal funds by redirecting to phishing sites.
  • Over $40,000 in unauthorized fund transfers were detected in the attack.
  • The incident highlights the need for better security in DeFi platforms like Velodrome and Aerodrome.

In a recent development, decentralized exchanges Velodrome and Aerodrome have issued warnings to their users, notifying them of a potential security breach on their official websites. The incident is suspected to be a domain name system (DNS) attack, wherein hackers gain control of a website and redirect users to malicious phishing sites, with the aim of stealing users’ funds. 

The decentralized exchange platforms have urged users to refrain from interacting with their websites until further notice, as they investigate the situation.

DNS attack threatens user funds

Both Velodrome and Aerodrome, prominent players in the decentralized exchange ecosystem, have fallen victim to a DNS attack, which could have dire consequences for their users. These attacks exploit vulnerabilities in the domain name system, a fundamental protocol on which websites heavily rely. 

By compromising the DNS, attackers can gain control of official website links, leading users to phishing sites associated with malicious contracts.

Velodrome and Aerodrome took swift action to alert their user base, emphasizing the seriousness of the situation. In their official announcements, they cautioned users against interacting with their websites until the security breach is resolved. The incident raises concerns about the safety of user assets on these platforms, and both teams are actively working to address the issue and provide further updates.

Incident details and funds at risk

The attack on Velodrome and Aerodrome has raised significant alarms within the decentralized exchange community. While the full extent of the breach is yet to be determined, initial observations by on-chain analyst ZachXBT revealed unauthorized fund transfers totaling over $40,000 to two specific addresses. These transfers are believed to be linked to the DNS attack, potentially resulting in the loss of user funds.

Velodrome, currently the second-largest decentralized exchange protocol on the OP Mainnet (formerly known as Optimism), boasts a substantial total value locked (TVL) and revenue. With over $139 million in TVL from users, it has established itself as a prominent player in the decentralized finance (DeFi) landscape. The platform’s commitment to user security and fund protection remains a top priority as they navigate this challenging incident.

Meanwhile, Aerodrome stands as the largest protocol on Base by TVL, with a staggering $63 million in user funds locked within its ecosystem. The scale of this attack has sent shockwaves throughout the DeFi community, emphasizing the critical need for heightened security measures and vigilance in the DeFi space.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

Share link:

Benson Mawira

Benson is a blockchain reporter who has delved into industry news, on-chain analysis, non-fungible tokens (NFTs), Artificial Intelligence (AI), etc.His area of expertise is the cryptocurrency markets, fundamental and technical analysis.With his insightful coverage of everything in Financial Technologies, Benson has garnered a global readership.

Stay on top of crypto news, get daily updates in your inbox

Related News

Cryptopolitan
Subscribe to CryptoPolitan