Prominent DeFi Coin Pickle Finance Plunges 50% in Wake of Attack

Nick Chong

Last Updated: June 11, 2024 2:08 pm

2 mins read

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Holders of Pickle Finance’s native coin PICKLE are currently suffering from a 50% drawdown after the protocol was attacked by an unknown user. Details are still unclear about the attack but the loss of funds has resulted in users pulling their liquidity and selling the cryptocurrency en-masse.

PICKLE is down to $11.50 as of this article’s writing, just under 50% below where it was 24 hours ago. This makes it one of the worst-performing cryptocurrencies of the past 24 hours. Only bad performers include yAxis and Yield Wars, which both are tangentially related to Pickle.

What Happened With Pickle?

Approximately three hours ago, analysts noticed a suspicious transaction involving Pickle Finance’s pDAI Jar, which invests users’ DAI to earn regular returns paid out in DAI.

The transaction involved a complex Ethereum contract, coupled with $20m worth of DAI that got sent to an address that was not a contract.

It appears to be a bug related to Pickle’s Swap Jar functionality, which allows yield farming strategies to be swapped. The issue was that there apparently was no check to ensure that the Jar the funds were being swapped into was not malicious.

This resulted in the removal of $20m from the contract. It is currently unclear what the attacker will do the funds, though there are some that have attempted to contact the attacker to try and get their money back.

Many DeFi Exploits

This is the latest in many recent DeFi exploits.

Previous attacks included those on Harvest Finance, Value DeFi, Akropolis’ Delphi yield farming pool, and a number of others.

Many believe it is still too early to suggest that this space is ready for mainstream adoption with the number of attacks that have taken place recently.