Nemo Protocol Suffers $2.59 Million Loss from Security Flaw
- Nemo lost approximately $2.59 million due to a hack on September 7, linked to unaudited code deployment.
- The vulnerability was identified in a function intended to reduce slippage, allowing the attacker to alter the protocol’s state.
- The problematic code was deployed in January, while security upgrades were only implemented in April.
- Asymptotic, the auditing team, flagged the issue on August 11, but Nemo did not address it before the exploit occurred.
- Nemo has paused core functions and is collaborating with security teams to freeze assets on exchanges.
The incident highlights ongoing vulnerabilities within DeFi protocols, as seen with previous exploits like SuperRare’s $730,000 loss due to similar issues. Nemo is now developing a compensation plan for affected users and has promised enhanced security measures moving forward.
In response to the hack, Nemo is working on a patch and has removed its flash loan function while fixing the vulnerable code identified in their system.Source
