Alchemix: The Aleth/ETH Curve Pool Suffered an Assault and Misplaced About 5,000 ETH, and the Funds within the Alchemix Vault Are Protected

Alchemix, a DeFi lending protocol, tweeted that Curve Finance notified Alchemix that as a result of a vulnerability in Vyper, their alteth/eth pool could also be attacked. Alchemix shortly eliminated AMO-controlled liquidity from the curve pool by the AMO contract.

The exploit was carried out on the Curve pool contract. The Alchemix sensible contract has not been attacked in any manner, and the funds are protected.

Three transactions are required: withdrawal of LP tokens from Convex, withdrawal of alETH from Curve pool, withdrawal of ETH from Curve pool. The primary transaction unstaked LP tokens from Convex was executed, and after the second transaction was executed, 8,000 ETH had been faraway from the curve pool.

There are nonetheless about 5,000 ETH liquidity managed by AMO within the curve pool. Within the strategy of eradicating the remaining liquidity, the alETH/ETH curve pool was attacked by an attacker. At the moment, the alETH reserve has misplaced about 5,000 ETH.

For customers, the funds within the Alchemix vault are protected, and all Alchemix contracts are unaffected. It isn’t protected to offer liquidity within the alETH/ETH curve pool.

It’s technically protected to offer liquidity for alETH elsewhere, however an attacker might use this liquidity to promote alETH in trade for ETH.

The honest value of alETH is at the moment unknown, and any person who holds alteth or LPalETH faces this uncertainty.

Alchemix recommends that any LPs that present liquidity within the decentralized buying and selling platform Saddle Finance’s alETH pool and Curve’s frxETH pool withdraw their liquidity as quickly as potential.