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Binance Smart Chain believes hackers are specifically targeting it following back-to-back DeFi exploits.

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Binance Smart Chain believes hackers are specifically targeting it following back-to-back DeFi exploits.

Several defi protocols built on top of Binance Smart Chain [BSC] decentralized finance ecosystem have suffered one after another hacks and exploits in a short period of time that has stemmed especially this past month. The platform believes that the recent flash loan hacks were orchestrated against BSC specifically.

The platform said on the 30th of May,

“There are >8 flashloan hacks recently, we believe, an well organized hackers are targeting Binance Smart Chain now. It is very challenging time for the BSC community.”

In a series of tweets, Binance Smart Chain also went on to urge the team behind the decentralized applications [DApps] to work with their audit companies to do another health check.

It also asked the cloned and forked defi projects, to “double and triple check” the changes from the original version and employ necessary risk control measures to actively identify any peculiar activities in a real-time manner and halt the protocol if any such strange activity indeed occurs.

Binance Smart Chain’s Rise to Fame

Since its inception last September, BSC saw tremendous success. The activity on Binance Chain’s parallel blockchain has dramatically soared as it continued to make headlines as one of the more viable rivals to the Ethereum network which was riddled with scalability issues.

However, as BSC rose to popularity, so are the bad actors that have breached various protocols and managed to siphon off with billions in crypto.

Binance had recently stated that it was not responsible for exploits on BSC protocols. Samy Karim, who happens to be the coordinator of business and ecosystem development at the cryptocurrency exchange, had earlier stated that Binance Smart Chain is a public permissionless infrastructure that enables anyone to deploy. He went on to add,

“You have malicious actors there and hacks, and exploits in defi are not new and definitely not unique to BSC.”

In another related news, BSC had added the blockchain analytics and cryptocurrency intelligence company, CipherTrace for the purpose of tracking illicit transactions.

Binance Smart Chain’s DeFi Project Losses Over $30M In Flash Loan Exploit

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A DeFi project Spartan Protocol’s contract suffered an exploit that led to loss of more than $30 million in funds. The incident reportedly originated due to a flawed liquidity share calculation in the protocol, that resulted in the drainage of assets from the pool.

In the post-mortem blog post, the security firm PeckShield detailed,

“In particular, the specific hack inflates the asset balance of the pool before burning the same amount of pool tokens to claim an unnecessarily large amount of underlying assets. The consequence of this attack results in more than $30M loss from the affected pool.”

The decentralized protocol [DeFi] was built on Binance Smart Chain for incentivized liquidity and synthetic assets. While first reporting the incident Spartan had revealed that the malicious entity used $61 million in Binance’s native token BNB to control the pools via an unknown economic exploit path to remove almost $3 million in funds from the pools.

According to the post-mortem report, the flash loan was taken on BSC’s popular DEX PancakeSwap for 100,000 wrapped BNB [wBNB]. This amount was to be paid back at the last step with 260 wBNB as the flash loan fee. However, the hacker allegedly swapped the wrapped BNB to Spartan’s native token – SPARTA five times via this exploited pool of the protocol. It swapped wBNB to SPARTAN an additional ten times through the same pool.

After inflating the asset balance in the pool, tokens were burnt to withdraw the liquidity. This process was repeated until the flash loan of 100,260 wBNB was returned and the hacker drained more than $30 million from the DeFi protocol.

DeFi Flash Loan Attacks One After Another

Rekt, which posted another assessment of the incident, also stated that Spartan’s latest exploit with $30 million funds drained is the sixth biggest incursion on its leaderboard.

This news comes jist days after the attackers of yet another Binance Smart Chain’s DeFi exchange Uranium Finance siphoned off with more than $57 million in exploit from a similar attack. In April 20th, layer two protocol EASYFI lost around $59 million.

Binance Smart Chain Welcomes EOS’s Largest DeFi Platform

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Binance Smart Chain [BSC] has seen tremendous development. In terms of liquidity and decentralized applications [dApps], BSC is becoming a major player in the industry. Hence, it is safe to say that it has emerged as one of the most distinguished alternatives to not just the Ethereum network but also to EOS. The latter lost one of the biggest decentralized finance [DeFi] projects to the Binance ecosystem this week.

The DeFi platform in question is ‘Effect Network‘ which is headed for a switch in its development from the EOS network to the Binance Smart Chain. The developers cited concerns regarding the future and viability of the EOS blockchain as one of the most prominent reasons for relocation.

It is important to note that the founder and Chief Technology Officer of EOS’s parent firm Block.one, Daniel Larimer had left the company nearly a couple of months ago. Furthermore, the controversial departure led to many questions regarding his inability to bring about viable solutions to the many issues plaguig the EOS ecosystem.

Talking about the growing confidence in Binance Smart Chain instead, Effect Network’s CEO Chris Dawe reportedly stated,

“Look at what the Binance organization has accomplished in only the last three years. It is a testament of dedication, hard work but above all its laser-focused vision. The amount of products and services our clients and workforce can tap into with the Binance ecosystem are amazing and will help accelerate the growth of the Effect Network like never before.”

Binance Smart Chain’s Exponential Growth

Despite centralization debates, the BSC ecosystem has grown considerably over the past several months. Thanks to growing gas fees on the Ethereum blockchain that was currently hovering close to $18. BSC, on the other hand, was processing on average 2X volume of the Ethereum network, that too, at a fraction of its current transaction fee.

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Binance Smart Chain Welcomes EOS's Largest DeFi Platform 2

Therefore, several DeFi platforms have either left the Ethereum network or have expanded their footprint across BSC as well to enable its users to choose their preferred mode of network. Gauging at BSC’s unique address count, it can be noted that the network has seen significant growth as the figures continued to maintain a steady uptrend. It was found to be at 61.7 million on the 27th of March.