Cover’s DeFi-protocol token collapses 90% after attack

Cover’s DeFi-protocol token has depreciated by more than 90% after an unknown attacker exploited a vulnerability in the code and managed to increase the issue.

The lead developer of yEarn.Finance, nicknamed banteg, urged users to withdraw the liquidity as soon as possible.

According to him, the project team could not stop the issue in time as it was sleeping. The blockchain recorded a 40 quadrillion COVER issue operation.

According to The Block, the attacker sold $5 million worth of COVER.

Cryptocurrency exchange Binance suspended trading and accepting deposits in DeFi-protocol tokens.

COVER on the Binance exchange fell from $762 to $70.13 in a few hours. According to CoinGecko, the token is trading at $48.97 at the time of writing.

An hourly chart of Binance’s COVER/BUSD exchange from TradingView.

Cover Protocol is a peer-to-peer insurance marketplace. It was acquired by DeFi’s yEarn.Finance project in late November.

In September, a double-spending bug was discovered in SushiSwap’s management mechanism, and later DeFi-protocol lost between $10,000 and $15,000 due to a vulnerability.

As a reminder, decentralised platform Warp Finance suffered an instant loan attack on 18 December. The team managed to recover $5.85m of the $7.7m stolen.