Zunami Protocol Hacked, Stablecoin Pools Manipulated

Zunami Protocol has confirmed $2.1 million exploit on its stablecoin pools – users urged to avoid buying zETH and USD.

Hacker next to a jar of Bitcoins working on a computer which is displaying AT&T logo on the screen.
Created by Kornelija Poderskytė from DailyCoin
  • Zunami protocol is the latest victim of a DeFi exploit.
  • The protocol confirmed the news on Twitter.
  • Blockchain security firms report that millions of funds have been stolen.

DeFi project Zunami confirmed via Twitter that hackers had compromised its protocol, particularly its “zStables” stablecoin pools. The protocol suggested that although user funds are safe, they should avoid buying zETH and UZD.

Zunami’s tweet followed an earlier post by blockchain security company PeckShield, which alerted users and the platform about the ongoing attack.

Estimated Loss of $2.1 Million

PeckShield has estimated that Zunami lost over $2.1 million in the attack, largely believed to have emanated from a price manipulation glitch in its Curve Pool. According to the security firm, price manipulation issues in DeFi protocols can be manipulated by transactions to manipulate the price.

Other blockchain security companies have also arrived at the same conclusion. BlockSec mentioned two attacks, with the second incurring approximately 115 ETH in damages. Ironblocks pointed out the amount of funds stolen to be 2,127,000 $ (1,152 ETH).

Claims of Early Warning by Security Firm

As other blockchain security firms responded to the Zunami exploit, SlowMist founder Xian Yu also took to Twitter, claiming that his firm’s systems had detected the price manipulation risk on Zunami Protocol and informed the team privately in advance. According to Yu, the event is unfortunate but could have been avoided.

Two hours after revealing the attack on Zunami Protocol, PeckShield posted another tweet, noting that hackers washed the missing funds via Tornado Cash.

You might also like to know how this DeFi hack happened:


Unraveling the Curve Finance Hack, the Causes and Its Impact

Learn how you can be safe from crypto hacks:

As Another Token Bridge Gets Hacked, How Can Crypto Users Protect Themselves?

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Brian Danga

Brian Danga, a Kenyan crypto reporter, is dedicated to delivering breaking news and updates from the cryptocurrency world. With a background as a Web3 writer and project manager, he recognizes the importance of unbiased reporting. Holding an LLB degree from the University of Nairobi, Brian's analytical skills contribute to his accurate news reporting. His personal interests include cooking, watching documentaries, reading, and engaging in intellectual discussions.