Breaking DODO DEX Exploited for $2 Million in Latest DeFi Incursion

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In Brief
  • DODO DEX reporting attack on v2 crowdpools.

  • $2.1 million has been lost in the exploit.

  • DODO prices stable but TVL drops 38%.

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The DODO decentralized exchange has reported an exploit in which a number of its liquidity pools were attacked.

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The Chinese-based DODO automated market maker has reported that several of its version 2 crowdpools were attacked on March 8. It stated that the WSZO, WCRES, ETHA, and FUSI pools were impacted, while AC pool funds have been fully recovered.

DeFi Prime revealed that the offending transactions totaled $2.1 million.

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Version 1 Pools Safe

DODO, which launched in August 2020, added that funds in all other pools, including all V1 and all non-Crowdpool V2 pools, are safe;

“As a precautionary measure, we have temporarily disabled the pool creation portal on DODO. Meanwhile, we are working closely with our security partner to recover the funds. We will provide more information as soon as it becomes available.”

There was very little other information available on the exploit at the time of press.

Managing partner at Puzzle Ventures, Jerry Zhou, stated that he has full confidence in the DODO team and its ability to recover the funds.

“I can understand some investors and crowdpooling projects feel frustrated about DODO, but you should know the road is never smooth. As far as I know, they have made significant progress in recovering the funds. I believe they will show a good result in the end.”

There have been a number of DeFi related exploits so far this year including Saddle Finance which was attacked on its launch day. The Furucombo DEX lost $15 million in February and the PAID Network was also attacked on March 5.

DODO Price Reaction

The exchange’s native token of the same name has weathered the storm so far. It remains trading flat on the day at a little over $4.

DODO took a 7% hit over the past seven days but is still up 150% over the past month. The token hit an all-time high of $8 on Feb. 20. This was just one day after Binance launched liquidity farming incentives for the project.

According to DeFi Pulse, the Binance Smart Chain-based DEX has a total value locked of around $40 million. It took a slide of around 38% in the hours following the digital incursion as panic liquidations ensued.

Disclaimer

All the information contained on our website is published in good faith and for general information purposes only. Any action the reader takes upon the information found on our website is strictly at their own risk.
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Martin has been covering the latest developments on cyber security and infotech for two decades. He has previous trading experience and has been actively covering the blockchain and crypto industry since 2017.

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