Rodeo Finance exploited for the second time in every week, $1.53M misplaced

• Rodeo Finance is an Arbitrum-based decentralized finance (DeFi) protocol.
• The hacker manipulated worth oracles and executed trades utilizing the manipulated worth.
• The value of Rodeo Finance’s native token has plunged 54% after the hack.

On July 11, the Arbitrum-powered decentralised finance (DeFi) protocol Rodeo Finance was hacked ensuing within the lack of 810 Ether (ETH) price $1.53 million. The DEX was exploited utilizing a code vulnerability in its Oracle.

Peckshield, a blockchain analytics firm, revealed information displaying that the exploiter ultimately transferred the stolen funds from Arbitrum to Ethereum and exchanged 285 ETH for $unshETH. The ETH was subsequently positioned on ETH2 staking by the exploiter. Final however not least, the exploiter used Twister Money, a widely known mixer service, to route the stolen ETH.

Time-Weighted Common Worth (TWAP) Orcale manipulation

The hacker manipulated the Rodeo’s Time-Weighted Common Worth (TWAP) Orcale and tampered with the pricing of the ETH.

The TWAP Oracle is utilized by DeFi protocols to calculate the typical worth of property for a particular timeframe to mitigate worth fluctuation because of the volatility within the crypto market. Nonetheless, it’s susceptible to manipulations by means of synthetic skewing of the calculated common costs of property.

The exploiter first borrowed a big sum of ETH after which artificially manipulated the worth to purchase the identical asset at a deflated worth. Later the hacker returned the mortgage and made a revenue based mostly on the low worth after the manipulations.

Rodeo’s TVL drops considerably

Apart from inflicting the Rodeo Finance (RDO) token to tumble 54%, the hack has additionally triggered the whole worth locked (TVL) in Rodeo to drastically fall.

Earlier than the hack, the DeFi protocol had $20 million in TVL, nevertheless it has since dropped under $500 after the hack.

That is the second time that Rodeo Finance is being hacked in July 2023. It was hacked once more on July 5, 2023, and $89,000 price of crypto property had been misplaced attributable to a vulnerability in its ‘mintProtocolReserves’ operate.