While the security of blockchain-based decentralized finance (DeFi) projects is being discussed once again, Volo Protocol running on the Sui network became the target of a serious attack. Aiming to provide returns to users, Volo receives investments through “vaults” where various cryptocurrencies and tokens are collected. Although the protocol promises to offer a new generation of investment tools in the DeFi ecosystem, the latest incident clearly revealed the risks facing the sector.
Loss of $3.5 Million in 3 Safes
In the attack confirmed on Wednesday morning, a total of approximately $3.5 million worth of digital assets were stolen from three separate vaults of Volo Protocol. According to the statement made by the institution, no security vulnerabilities were detected in other safes and approximately $28 million in assets remain safe.
Volo shared, “The attack affected only 3 of our safes, a similar danger was not observed in the other safes we have. We are ready to cover this loss from our own resources without reflecting the damage to the users.”
In the safes affected by the attack; It was noted that there was wrapped bitcoin (WBTC), XAUm token indexed to Matridock’s gold, and USDC pegged to 1 dollar. The protocol froze all vaults immediately after the extent of the damage became clear and activated onchain monitoring teams together with the Sui Foundation.
500 Thousand Dollars Frozen, Investigation Continues
Following the crisis, Volo managers coordinated with ecosystem partners and made approximately 500 thousand dollars of assets unmovable on the chain. But most of the lost funds are still being tracked.
The protocol stated that after the investigation is completed, it will share a detailed technical report and improvement steps with the public.
Security Concerns Are Rising in the DeFi Space
This attack on Volo added a new one to the succession of cyber incidents on decentralized platforms. Especially after the KelpDAO attack last week, the alarm level in the DeFi ecosystem increased, and sudden fund outflows of users were seen on major lending platforms such as Aave.
According to DeFiLlama’s current data, it is stated that while there has been a total loss of 7.78 billion dollars throughout the industry so far, an additional loss of 2.90 billion dollars has occurred only in inter-chain bridge protocols. When these figures are combined, the total damage exceeds 10 billion dollars. The amount in question is almost equivalent to the market value of the top 10-15 cryptocurrencies worldwide.
While corporate investment interest in decentralized finance projects is increasing, it is noteworthy that security investments are not increasing at the same pace. As the number of similar exploits has increased in recent weeks, user and investor confidence in the industry continues to be shaken.
