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Optimism: DeFi protocol succumbs to hack, how was OP impacted
Hundred Finance, a DeFi protocol on the Optimism network gets hacked. Despite large funds stolen after the hack, the Optimism protocol and token remain largely unharmed.
– DeFi protocol on Optimism, called Hundred Finance, was hacked with $7 million worth of funds stolen.
– The sentiment against the protocol declined, however activity on Optimism remained high.
Hundred Finance, a lending and borrowing DeFi protocol on the Optimism [OP] network, was attacked by a hacker on 15 April. The hack led to the exploitation of $7 million worth of assets.
Realistic or not, here’s OP’s market cap in BTC’s terms
Taking millions from Hundred
According to data provided by PeckShield Inc, a blockchain security firm, the hacker’s strategy was to donate a large amount of Wrapped Bitcoin [WBTC] to manipulate the price of another cryptocurrency called Hundred Finance Wrapped Bitcoin [hWBTC].
By inflating the exchange rate of hWBTC, the hacker was able to take advantage of a vulnerability on the platform and drain its lending pools by withdrawing a tiny amount of hWBTC. This resulted in significant losses for Hundred Finance and its users.
Hundred Finance has been using Twitter to keep its users informed about the recent attack on their platform. In their latest tweet on 16 April, they mentioned that they are attempting to open a dialogue with the hacker in order to come to an agreement.
We advise not to speculate on how the attack was executed, team is preparing a post mortem.
Main focus is establish coms with hacker, reach an agreement.
In parallel we are gathering all information available in order to have that handy for possible further steps.
Thank you
— Hundred Finance (@HundredFinance) April 16, 2023
These attacks caused a severe impact on the state of the Hundred Finance protocol. According to data from Dapp Radar, volume and overall transactions on the network have declined.
Source: Dapp Radar
Caught in the crossfire
The dApp hack has the potential to affect people’s opinions of the network it operates on.
Data from Santiment showed that over the past few days, there has been a decrease in positive sentiment toward the Optimism protocol. This indicates that the general outlook of the crypto community towards Optimism turned more skeptical.
Source: Santiment
However, the negative sentiment around Optimism didn’t affect the protocol’s health. According to Token Terminal’s data, the daily activity on the protocol continued to surge over the last few days. Moreover, the fees collected by the protocol also increased by 29% in the last week.
Source: Token Terminal
OP seems to be okay
OP experienced a significant price increase of 21.78% since 12 April. The Relative Strength Index (RSI) for OP is currently at 64.32, which suggests that it is in a slightly overbought territory.
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Additionally, the Chaikin Money Flow (CMF) indicator for the token surged from -0.03 to 0.06 in the last few days. This indicator implies that the demand for OP has recently gone up, resulting in increased buying pressure.
These factors point towards a positive trend for OP, with rising buying pressure leading to a hike in its price.
Source: Trading View
